Home Buying Questions to Ask

1. Once you’ve decided on a Buyer’s Agent, talk about how offers will be written and presented. It’s good to look over a blank contract, to have an idea of what’s included and have any preliminary questions answered.
   
   
2. What types of disclosures are sellers in your area required to give to buyers? What if there is no disclosure required?
   
   
3. What types of home inspections are standard in your area? Are there other inspections that the agent recommends?
   
        a)   Typically the buyer pays for a home inspection (home inspectors are currently not licensed in TN, but will be under new guidelines after June ’06), which can range from $250 to $500, depending on the scope of the inspection and tests run. Usually the inspection is done within the first week of contract acceptance, and the contract is contingent on acceptable inspection or negotiation of repairs to be done.
        b)   We absolutely recommend that all buyers (even handyperson types), pay for an independent inspection of their prospective home. The small outlay of cash can help disclose unseen defects in the home prior to purchase.
        c)   If you have concerns about radon, lead-based paint, mold, roof, HVAC or structural issues, those items can be tested or evaluated, usually by specialists at an additional fee. Again, these costs are typically paid by the buyer.
   
   
4. Is a survey required for most transaction? If so, who typically pays for it, the buyer or the seller?
   
   
5. Who does the title search to verify that the deed is problem free, attorneys or a title company?
   
        a)   In Davidson County, it is customary for the seller to pay for the title search and policy, however, it is negotiable.
        b)   We recommend that our clients have separate legal representation for their closing, and offer referrals to attorneys who specialize in real estate closings.
   
   
6. Who acts as settlement agent, the person who puts together final paperwork for you to sign?
   
        a)   Again, we recommend that you utilize an attorney for closing all documents. It is not more expensive to have an attorney than a title company or closing agent, but there is a higher level of legal competency and advise available from someone licensed to practice law.
   
   
7. Other than loan costs, what's the average total cost for other closing fees?
   
        a)   All these expenses will be itemized for you in the Truth in Lending and estimate of costs sheet that the lender will put together for you.
   
   
8. How long does it usually take to close on a home once an offer is accepted?
   
        a)   This is negotiable, though most sellers prefer the shortest period of time possible, typically 30 days. Contracts can close in three days, or take a year, depending on the situation and agreement of parties.
   
   
9. What are my responsibilities?
   
        a)   Keep a cool head!
        b)   Ask questions – make sure you are clear on your role every step of the way.
        c)   Follow through! Time is of the essence, and it’s important that you take care of any details requested by your agent, loan officer, attorney, etc. so they can do their best in helping you.
        d)   Expect some snags – every purchase is different, with problems to be solved and steps to be taken. Look for an agent who realizes that some challenges are to be expected, and who has plans in place to deal with issues quickly and professionally.
        e)   Keep your appointments, or reschedule immediately – again, the process is time-sensitive, and requires diligence on your part to make sure it goes smoothly.
        f)   Do not expect the agent(s) to drive you by every property. Take the lists they send you and drive by first. Make sure you like the neighborhood in general, then drive the block to make sure it is appealing to you. Check the houses behind it (a block over) and on either side. If you wish, contact the police department to check on crime rates or safety issues that concern you. Once you find some homes you like from the exterior, then call to arrange preliminary evaluations and showings. This will make create excellent team work in finding the ideal home, and as a courtesy will avoid asking sellers to clean and prepare their home for a showing that won’t occur if you don’t like the exterior.
        g)   Enjoy the process – it’s great fun!

If you’d like to discuss this further, feel free to contact us by clicking on our “contact us” button.

We wish you every success in finding your perfect home!

Sher Powers, Realtor®
Robyn Farrell, Affiliate Broker
Crystal Doughtie, Assistant