5 Key Items to Consider before Putting in an Offer on a House

Published on 10/15/2021

5 Key Items to Consider before Putting in an Offer on a House

Wow, you found the one! You’ve found your dream home in North Carolina. You’re probably over the moon with excitement and nerves as you start preparing to put an offer down. This is a thrilling time for sure. But before you go too far into prepping your winning offer letter, there’re a few things to consider. You don’t want to get in too far over your head. Here are five key aspects to consider!

1. Determine as much as you can about the home’s history. 

Before rushing to put an offer down, try to do some digging to find out as much as you can about the history of this home. Enlist your real estate agent to assist you as oftentimes they can find more out with their resources than you could on your own. But look into how long the home’s been on the market. And find out if it was under contract previously and what happened to bring the home back on the market if that was the case. 

2. Look into past finances.

A lot of the seller’s flexibility on price will come down to how much they still owe on the home, or how much it’s sold for in recent years. Find out when it was last purchased and for how much as well as how much lien is left on the property.

3. Do your market research.

Between you and your realtor, you should be able to do the research on the current market. Determine what homes are selling for currently in the neighborhood. Also look back a few years to see what they’ve been selling for. This will help you figure out if the home you’re interested in is a fair price. You ideally want something right in the middle somewhere of what comparable homes have been going for. This way, the home can appreciate further and you’ll be more likely to get a return on investment.

You also might want to take into account current inventory in the housing market. Fewer homes for sale means it’s more of a seller’s market and an abundance of homes for sale means it’s more of a buyer’s game. Currently, it’s still leaning more towards a seller’s market with lower inventory and high numbers of buyers. Don’t be discouraged by this, but do take it into account when putting down your offer. 

4. Research taxes and fees.

Property tax is a part of what you’ll be spending monthly and yearly on your new home. So figure taxes into your budget. Look into how much the property taxes are in your area and then build in a cushion as these can fluctuate year to year. Another fee to watch out for is the HOA or homeowners association fee. If your home is in an area with a HOA, research how much those monthly fees will be so you’re not surprised. 

5. Budget for utilities and upkeep.

While you’re working on your budget, go ahead and figure in monthly utilities. And of course consider monthly and seasonal maintenance and upkeep tasks. For instance, if you want to buy a place with a large yard, figure in costs to mow in the warmer months. Yes it’s appealing to have all that space, but more yard also equals more money and work. Budgeting ahead of time for these costs will help you not bite off more in monthly bills than you can realistically handle.

Keep these 5 key things in mind as you prepare your offer on your dream home. And if you need any storage assistance while moving or in your new place, always keep us here at Smithfield Storage in mind!