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Ever been in a situation where you’re thinking…”I should probably be asking some questions here,” but you’re not exactly sure what those questions are?  If it’s your first time putting an offer in on your first home, you might feel like that.  Never fear – we’ve got you covered.

Here are eight essential questions you should always ask before you put an offer in an a property:

1. Why are the owners selling?

Home inspections and disclosures aside, this is always a great question to ask. The seller’s reasons for moving may be relevant to you and cause you to reconsider making an offer. Are there any neighbour disputes? Are there issues with the water or is something happening in the community that has turned the seller off to the point of moving?

2. What is the current market value of the home?

There is no magic number when it comes to making an offer on a home. However, having the knowledge of the current market’s worth of the home is essential in making a solid offer. Your Realtor® will compare similar homes in the same area to determine the most accurate market value and advise you of a reasonable starting point.

3. What did the sellers pay for the home?

There’s no doubt that there are some successful “flippers” out there who can take a run-down home and turn it into a picture-perfect escape. But, you must be aware that there are also some who buy and resell just to make a profit without making any upgrades. Looking to the amount the seller has paid and if there are any upgrades is a good indicator of whether the price of a home is warranted.

4. How long has the home been on the market?

The length of time the home has been on the market is often an indicator of how motivated the sellers are to move. A lengthy time on the market can make a seller more accepting of an offer but it can also indicate that the home may be overpriced, and the sellers are not willing to budge. Be sure to ask your Realtor® the history of the listing’s price as well as times listed by the seller.

5. Are there any future plans for development in the area?

It is always a good idea to know what is happening in the area you are considering buying your new home in. Developments such as amenities or new homes could help boost the value of a home and others could be more of a burden. Being aware of these can help you in the offer process. Your Realtor® will guide you on what developments bring the most value to a neighbourhood.

6. Have there been any other offers?

Knowing how many offers there have been and whether they were accepted can give you a better understanding of the seller’s position. If a home has had other offers, consider whether those other offers were low-balled. Also ask if the home is properly priced, what conditions you should or shouldn’t include, and whether your Realtor® has a sense of what your odds of getting this one may be.

7. What are the average utility costs?

It is always a good idea to investigate how much it costs to run the home so you’ll know if that amount is sustainable long-term. Every household needs a budget, and this amount will help you plan yours.

8. What is the seller’s timeline for closing?

Asking this question before submitting an offer is so important. Not only will it help you decide whether their timeline will suit your needs, but it will also give you an understanding of how to make your offer more appealing to the seller.

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