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Well, it depends on whether or not you have an option period. You could also gather the information, especially utility bill information, during the option period after you make an offer. But I would ask about upgrades on the front end in many cases.
It all depends on so many factors though. If it's a really hot, fast moving market and the house is a type that's typical for that market, and if you have an option period in your state, etc. etc. etc. - lots of different scenarios.
I just believe that knowledge is power so the more questions you can ask and get answered early in the process the better.
Two examples from my own life:
1) My parents were considering making an offer on a historic home that was nearly 200 years old. They asked about prior uses of the property before making an offer and found out that at one point there was actually a gas station and gas tanks on part of the property and they didn't want to deal with that. So they didn't make an offer.
2) We recently bought a newer home in a subdivision and we didn't ask about prior uses. We did, however, ask about updates (house was ten years old but it looked like there had been updates and yes, there had been).
In both cases though, Texas offers an option period and we knew we had that option period time to really dig in and get all our questions answered.
I'm not real clear what you are wanting help with - choosing the home or planning for the process, but I'll just answer on process.
I would make sure you understand and are ready for the next steps that will be put in motion if you submit and offer and it's accepted. That will set up some deadlines and money that needs to be spent in short order, and clients need to be ready for that.
Earnest money, other fees, review periods, inspections, testing and timelines, appraisal, credit checks... I would ask your agent to draw you a timeline with checks that will need to be written and when and discuss it... "what will need to happen when and what does it cost?"
Which things are due when will depend on your area. I don't want to lay ours out even by example because I would probably just confuse you if your process is different. Ask your agent. I have at times, described the transaction period as 'death by a thousand paper cuts' because, particularly for first time buyers who are scraping everything they have together to get qualified, it can start to feel like you're suddenly writing a lot of checks and spending a lot of money and that is part of the risk you need to be sure you are ready for before making the offer.
Well, it depends on whether or not you have an option period. You could also gather the information, especially utility bill information, during the option period after you make an offer. But I would ask about upgrades on the front end in many cases.
It all depends on so many factors though. If it's a really hot, fast moving market and the house is a type that's typical for that market, and if you have an option period in your state, etc. etc. etc. - lots of different scenarios.
I just believe that knowledge is power so the more questions you can ask and get answered early in the process the better.
Two examples from my own life:
1) My parents were considering making an offer on a historic home that was nearly 200 years old. They asked about prior uses of the property before making an offer and found out that at one point there was actually a gas station and gas tanks on part of the property and they didn't want to deal with that. So they didn't make an offer.
2) We recently bought a newer home in a subdivision and we didn't ask about prior uses. We did, however, ask about updates (house was ten years old but it looked like there had been updates and yes, there had been).
In both cases though, Texas offers an option period and we knew we had that option period time to really dig in and get all our questions answered.
Thanks Kathryn.
I agree with you - knowledge is power - and I would prefer to have as much as makes sense to have answered based on our area before making the offer.
You're right that it depends on so many factors...I guess I'm just trying to gauge how much to demand/ask of the realtor. I know we have to trust his guidance but at the same time I don't want to leave it all up to him. Sometimes he seems a little more laid back than I'd like. But there is no way to know whether in being laid back details are being missed or if it's that we don't need those details in the first place. It's hard to know if you've never worked with a lot of different agents.
I'm not real clear what you are wanting help with - choosing the home or planning for the process, but I'll just answer on process.
I would make sure you understand and are ready for the next steps that will be put in motion if you submit and offer and it's accepted. That will set up some deadlines and money that needs to be spent in short order, and clients need to be ready for that.
Earnest money, other fees, review periods, inspections, testing and timelines, appraisal, credit checks... I would ask your agent to draw you a timeline with checks that will need to be written and when and discuss it... "what will need to happen when and what does it cost?"
Which things are due when will depend on your area. I don't want to lay ours out even by example because I would probably just confuse you if your process is different. Ask your agent. I have at times, described the transaction period as 'death by a thousand paper cuts' because, particularly for first time buyers who are scraping everything they have together to get qualified, it can start to feel like you're suddenly writing a lot of checks and spending a lot of money and that is part of the risk you need to be sure you are ready for before making the offer.
Good luck. :-)
My question was focused on getting clear on choosing the actual home. To get some facts / #s/ as well as some subjectives on how this house compares with others in the community it's in, any objective negatives about the house, as well as how this house in this community compares to the other communities we have on our mind. Get an overall picture whether yes, this house is worthy of an offer. If you have some tips on this I'd love to hear them...I can be very #s oriented but I want to make sure I'm being realistic as to what to expect from the realtor. I should add that part of the reason I am asking this is that the last time we were considering making an offer on a home - this was a while ago, but still - he sent me listings of sold homes for the past year. It seemed like I needed to make the analysis myself. Which I can of course take homes with the same # of beds and baths but still, it would be an overwhelming thing for me to have to do. Plus I am not a realtor and can't be sure I am comparing apples to apples.
But what you're bringing up about the process is super helpful because I have no idea what the process will be if we make an offer and the seller says yes.
So yes, I need to be aware of all that and I love the idea about laying out the timeline and the checks we'l need as well as any professional help we need to hire (e.g., an attorney, etc.)
In other words be really clear what a yes on the offer will unleash.
And yes, the risks...I need to understand what $s we risk.
first off, I assume that you're using a full-time, full-service, full-compensation Realtor (they're not giving you a rebate of some type).
If you're a "I want to know every detail" kind of person on a house you plan to write an offer on, then they should be happy to provide you with everything that's available. We deal with folks that occupy every area of the range from "just do it for me, I trust you explicitly" to "I want to know every detail and basically make all decisions and I'll tell you what to do".
At the same time, "give me lots of information" is fine when it's "I'm looking to check all the facts" but not so much when it's "I'm going to do this exercise to find a reason I DON'T want this home."
As far as discussing comps, yes they should do that enough to inform you and satisfy you as to the value of the home. I wouldn't give you a year's worth unless that was a small number (under 10), and generally as a "trend" of what's happened over the last year. Appraisers use 3 comps, and when the houses are more homogenous, 3-5 is plenty.
Lastly, you should always know (check some of the "selling house, it's so stressful" threads) - one can have all the facts in their corner, but at the end of the day, what it takes is compromise between Seller and Buyer to find terms and price they can BOTH be happy with.
first off, I assume that you're using a full-time, full-service, full-compensation Realtor (they're not giving you a rebate of some type).
If you're a "I want to know every detail" kind of person on a house you plan to write an offer on, then they should be happy to provide you with everything that's available. We deal with folks that occupy every area of the range from "just do it for me, I trust you explicitly" to "I want to know every detail and basically make all decisions and I'll tell you what to do".
At the same time, "give me lots of information" is fine when it's "I'm looking to check all the facts" but not so much when it's "I'm going to do this exercise to find a reason I DON'T want this home."
As far as discussing comps, yes they should do that enough to inform you and satisfy you as to the value of the home. I wouldn't give you a year's worth unless that was a small number (under 10), and generally as a "trend" of what's happened over the last year. Appraisers use 3 comps, and when the houses are more homogenous, 3-5 is plenty.
Lastly, you should always know (check some of the "selling house, it's so stressful" threads) - one can have all the facts in their corner, but at the end of the day, what it takes is compromise between Seller and Buyer to find terms and price they can BOTH be happy with.
BoBromhal, thank you, very helpful.
But yes, yes, and yes to your first 3 questions.
I want to know every detail because I want to know that I am making an informed decision. I like to understand things. Regardless of how the home is priced - I want to understand the reasoning and facts behind the offer.
What starts to happen when I don't get straight answers - or I don't get answers at all - is that I start doubting why you're not answering what I'm asking. And for me it starts eroding that trust.
And getting all the comps from the year prior - you have it exactly right - satisfy me as to the value of the home. Whether that's exactly listing price, below, or whatever. That is exactly right. And it's possible that he *knew* the price was OK, or whatever. But then, still give me your reasoning. I don't remember it being a lot of homes because it's a smallish subdivision - but it was homes that had nothing to do with the homes we were looking at - I am talking 100s of thousands more, or more bedrooms, etc., also were included. It seemed lazy to me. And at a critical time. Maybe he knew the house was going to fall through for some reason and didn't want to bother - but still it has left me wondering since then, and I must admit that it has eroded a little bit of my trust and my feeling that I'll be in good hands and I'll have someone guiding me through the process.
And it's especially important because he knows a lot of people to potentially work with - inspector, lender, etc. - and if that trust erodes then it will erode onto whatever recommendations he makes...which will make the process harder.
We compare values by looking at comps. We can place it in a range of values based on the area, size, features, and how they stack up. But in the end, what it's worth to you is your decision. Whether the pretty back yard or architectural details of one house make it worth $2000 more or $20,000 more than other homes without them is a subjective decision.
It is in fact an art, and that means it doesn't always fit in a nice tidy spreadsheet.
You should be able to ask your agent all the questions you can come up with, and to the degree there ARE answers to them, your agent should give his/her best answer. (I'm still not sure exactly what it is that isn't being answered here so I'm guessing and assuming)
At some point, you need to realize that the decision is as complicated, or as simple, as YOU MAKE IT. Do you want the house? Can you afford it? Do you think you can be happy in it? Most of the rest of the questions may be important at some point, but some are details that you will have a lot of time going forward to figure out. I do get some rather analytical clients who can sometimes really bog themselves down with unnecessary questions that really don't help them decide anything. There isn't just one perfect house. There's many. And you can make any one of them into your right place, if you decide to choose it.
Vague answer, I know... I'm sorry... but so far, it's a pretty vague question.
We compare values by looking at comps. We can place it in a range of values based on the area, size, features, and how they stack up. But in the end, what it's worth to you is your decision. Whether the pretty back yard or architectural details of one house make it worth $2000 more or $20,000 more than other homes without them is a subjective decision.
It is in fact an art, and that means it doesn't always fit in a nice tidy spreadsheet.
You should be able to ask your agent all the questions you can come up with, and to the degree there ARE answers to them, your agent should give his/her best answer. (I'm still not sure exactly what it is that isn't being answered here so I'm guessing and assuming)
At some point, you need to realize that the decision is as complicated, or as simple, as YOU MAKE IT. Do you want the house? Can you afford it? Do you think you can be happy in it? Most of the rest of the questions may be important at some point, but some are details that you will have a lot of time going forward to figure out. I do get some rather analytical clients who can sometimes really bog themselves down with unnecessary questions that really don't help them decide anything. There isn't just one perfect house. There's many. And you can make any one of them into your right place, if you decide to choose it.
Vague answer, I know... I'm sorry... but so far, it's a pretty vague question.
Thanks Diana.
You answered the question at the heart of the details, actually.
"You should be able to ask your agent all the questions you can come up with, and to the degree there ARE answers to them, your agent should give his/her best answer."
And yes to the "art" I totally agree - that's why me doing the comparisons can never be the same as what an experienced Realtor can assess. For me best for the process would be start with the spreadsheet so I can get my eyes on fact, and then tell me why those #s don't reflect the true value of the house (if they in fact don't).
Yes, I can see easily getting stuck on details. It's a big purchase, with lots of unknowns. Hopefully we won't do that, and if we are, the Realtor can help us see why it does not matter as much as we think. I'm thinking / assuming you don't mean comps is one of those unnecessary details. Although I can also see how if you like the house, and can afford it, some may just feel comfortable going for it without any comps.
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