Before Making an Offer
Things to Look for Before Making an Offer
It’s the house of your dreams, and you can’t wait to make an offer. Sit down, take a deep breath, and let your head rule your heart. No matter how much you like the house, it may have issues. Some problems are easily fixed, others will cost significant money and there are those that can’t change. Make an offer only when you’re sure you can deal with any downside the home may have.
Open Houses
During an open house, the real estate agent ensures the home looks as good as possible. Everything is neat, clean and uncluttered. However, even the best staging can’t camouflage certain items. Take a walk around the house and inspect the exterior. Termites are a problem in Hawaii, so know the telltale signs. Look for “sawdust” around the base of the home, which are actually the droppings of drywood termites. Subterranean termite infestation is just as common. Indications of subterranean termite issues include warped walls or sagging flooring, in case you don’t see the pests’ mud tunnels outdoors. Look at the roof, foundation, windows and exterior painting to see if work or replacement is needed.
When inside, feel free to open cabinets, check closets, turn faucets on and off and flush the toilets. You want to ensure there is sufficient storage space for your needs and that the plumbing is in good working order. If the house doesn’t smell right, or the real estate agent has gone to great lengths to mask orders, that’s a red flag. It’s possible mold is the culprit, or pet urine has soaked into the carpets or floors.
While you’re inspecting your potential new home, take a good look at surrounding properties. Are they in satisfactory condition, or are any of the houses run down? That affects property values, but it also may have an effect on an offer the seller is willing to entertain. Take photos and videos so you can discuss the pros and cons later on.
Perform Due Diligence
A little online research makes all the difference before making an offer on a home. You can check out the school system, neighborhood crime rates, local restaurants and shopping opportunities. Check out the neighborhood demographics if you’re looking for a community focused on your age group and lifestyle. Figure out how long it will take you to get to work. Try visiting the neighborhood at night to experience the vibe.
Other Bills
It’s important to think beyond the mortgage and take other costs of a particular home into consideration. While tax information is readily available, you also want to know about any homeowner’s association fees, water and sewer service costs, insurance and utilities.
When you’ve gotten good feedback on your questions, then it’s time to make an offer. Make your offer based on all considerations. Much depends on the market. If it’s hot, you won’t have much leeway, but in a normal or slow market, you’re in a better position to negotiate. Your real estate agent can advise you on the right offer to make, and it’s the seller’s decision from there. With luck, it’s a win-win for both parties.
