11 Things You Should Know Before Making an Offer

Before making an offer, it pays to learn as much as you can about the property and the surrounding area. A home may look great during a showing, but there are plenty of details you won’t see during a walk-through. Doing a little homework now can help you avoid unpleasant surprises later and feel much more confident about the property you’re hoping to purchase.

1. KNOW THE PROPERTY
Start with the basics: the property’s size, layout, age, and overall condition. Even if the square footage and room sizes are listed in the MLS, it’s a good idea to verify those numbers rather than simply assuming they’re correct.

A reputable home inspector can help you get a much better understanding of the property’s condition. The inspection typically takes place after an offer has been accepted, but it helps to know beforehand if there are specific areas you want the inspector to examine closely. An inspection clause may also give you options if significant problems are discovered or the seller is unwilling to address certain repairs, unless you’re purchasing the property “as is.” There are several things to consider, and this article explains more about property inspections.

2. READ THE DISCLOSURES
Unless the property is in foreclosure or is already bank-owned (REO), there should generally be a Seller’s Property Disclosure available through your agent. Take the time to read it carefully and pay particular attention to previous repairs, known defects, or other issues that have been disclosed.

3. REVIEW ALL APPLICABLE DOCUMENTS
If the property belongs to a homeowner’s association (HOA), you’ll want to understand exactly what you’re buying into. Review the HOA dues, rules, regulations, and bylaws, which the seller’s agent should typically be able to provide. These documents may cover everything from landscaping requirements and parking restrictions to community amenities such as pools or tennis courts. Be sure to look for information about upcoming or ongoing capital improvement projects as well. Like the inspection, HOA documents are typically reviewed after an offer has been accepted. Your offer can include appropriate language giving you options if the documents reveal something you aren’t comfortable with. Your agent can help make sure the necessary wording is included.

4. REVIEW THE TAXES
Ask for a copy of the property’s current tax bill and tax history. Look at the assessed value, any new assessments that may be coming, and recent changes in tax rates. If you’re financing the purchase, your monthly mortgage payment may include property taxes, particularly when the down payment is less than 20% of the purchase price. Also keep in mind that the current owner’s taxes may not necessarily reflect what you’ll pay, especially if the property currently receives a “homestead” exemption or similar benefit.

5. STAY SAFE
Take some time to research crime statistics and other safety information for the area. Because of Fair Housing laws, there are limits on the type of neighborhood-related guidance a real estate agent can provide, so this is an area where you’ll want to do your own research. A good article on Realtor.com offers some helpful suggestions for researching crime and safety in a particular neighborhood.

6. LEARN ABOUT THE SCHOOLS
If schools are important to your household, take time to research the schools serving the property. You may want to look beyond the schools themselves and consider bus routes, extracurricular activities, programs, awards, and proximity to the home. A few resources that can help you get started include:

7. DETERMINE DISTANCES FOR EVERYDAY ACTIVITIES
A ten-mile drive isn’t always a ten-minute drive. Check the distance and transportation options between the property and the places you’ll visit regularly, including work, school, shopping, and other everyday destinations. Use Google Maps at the actual times you’re likely to make those trips. A route that looks easy on a map can feel very different during rush hour. Better to discover that before you make an offer than after you move in.

8. SCOUT THE NEIGHBORHOOD
A home doesn’t exist in a vacuum. Parks, restaurants, shopping, recreation, medical facilities, and other nearby amenities can all affect how much you enjoy living there. A simple Google search can uncover local hotspots and events, while Google Maps can help you see what’s nearby and how long it takes to get there.

And don’t overlook one of the best sources of information: the neighbors. If you have the opportunity, ask what they like about living there—and what they don’t.


9. CHECK THE BANDWIDTH
Pull out your phone while you’re at the property and check your cell reception. You’ll also want to research which internet providers serve the address and what types of service and speeds are available.

10. ESTIMATE THE UTILITIES
Ask whether you can review a year’s worth of utility bills for the property, including electricity, natural gas or propane, water, sewer, and garbage pickup. Depending on the area, some water or sewer charges may be handled through the property tax bill. Looking at an entire year gives you a better sense of the home’s ongoing costs and helps you plan for months when heating, cooling, or other utility usage may be higher.

11. ESTIMATE REMODELING COSTS
If you’re already imagining changes to the property, put some numbers behind those ideas. Think about both the cost and timing of improvements such as landscaping, a deck, siding, windows, HVAC repairs, paint, flooring, or window coverings. A fixer-upper can be a great opportunity, but only if the improvements make sense for your budget and plans. The following articles can help you think through some of those decisions:

The more you know about a property and its surroundings before moving forward, the fewer surprises you’re likely to encounter later. You don’t have to sort through all of this information alone, either. My job is to help you understand what matters, look at the information together, and use it to craft an offer that makes sense for you.