Questions to Ask When Buying a Home

(March 15th, 2008)

i) Questions to Find the Right Home

- Is there a local school nearby? Can you tell me about it?

- Are there any big industrial projects near the home? Examples include new shopping malls, highways, housing or airport developments?

- Who provides local city services and how are they funded?

- If buying a single-family detached home, what is the status of new upcoming homes adjacent to your home that might affect your home?

- If buying a condominium, what are the rules regarding pets, free parking, visitor parking, rentals and condominium fees?

- If purchasing an old home, what repairs/improvements have been made on the home?

- When constructing your own home, how will the photo model differ from the actual built home? What is the track record & history of the builder and its results? How many homes has the builder built in the past several years.

ii) Questions to Ask When You've Found your Home

- Does the total square footage include basement & unfinished space?

- Does the total square footage include the garage?

- Have the interiors/exteriors of the building been measured?

- What other fees are included? What are the amounts for private mortgage insurance (PMI), maintenance/home improvement costs, taxes & home insurance?

- Can you give me a conservative estimate of the mortgage closing costs?

iii) Questions About Pricing the Home

- Can you give me a Comparative Market Analysis (CMA) for this home?

- What do you know about the seller's motivation?

- How long has the property been on the market?

- How old is the property?

- Which home inspector do you recommend? Can you provide references from your past clients?

- Can you walk me through a sample contract before I purchase the home?

- What are your strategies to help me get the best home @ the best price?

- What communication is being sent back and forth between you (the buyer's agent) & the seller's agent or the seller himself?

iv) Questions about Closing Costs

- What is the title of the property?

- When will i collect the keys of the house and how?

- Can you give me a conservative estimate of all these closing costs?

- Loan origination fees charged by the lender
- Title search fees
- Attorney fees (for drafting and filing the credit agreement)
- Credit application fee (non refundable fee, even if you get turned down)
- Property appraisal fee (to appraise the current value of your home)
- Homeowners' association fees + homeowners insurance

- Are you going to arrange for an escrow company or should I? What are the fees of the escrow company?

v) Questions about Foreclosures

- What's your experience with foreclosure properties? Do you have any references that prove your work history?

- Are there any outstanding liens on the foreclosed property? What is the title? Has the home been inspected by a certified home inspector? Are there any other factors that could impede my home ownership if I purchase this property?

- How does the selling price of the foreclosed property relate with prices of comparable homes in the neighbourhood? Is the price difference material enough to warrant purchase of a foreclosure home and all the troubles associated with it?