Purchasing Guide - Before you make an offer on a home

You have found what you believe is the perfect home.  It is in good condition, and you are ready to make an offer on the home.  But wait.  Before you make an offer on a home, there are other aspects about the home you will want to investigate and understand. 

• Is there an HOA, or Home Owners Association, you will be paying money to every month?  What are the HOA fees and what do they cover? Are there restrictions to the use of your property from HOA community rules?  Understanding your HOA is vital to you understanding what you're agreeing to when you purchase your home. 
• What zoning does your home have?  Most homes are zoned as residential, but others may be in a mixed-zone. Depending on what you want to do with your property, you may or may not be able to do so based on zoning.
• What are the property taxes?  How have property taxes grown in the last several years?
• Are there any special assessments affecting the property currently or in the foreseeable future?  Assessments are upgrades or repairs to your property and its surrounding area, like the street or street lights. Assessments cost money and may disrupt your home, so find out what the assessment is and if you can live with it. 
• What are the typical utility costs for the home? What can you expect to pay to keep your home running safely? 
• Factor in the costs of HOA, taxes, and utility costs to get a sense of whether or not you can comfortably afford to live in the home or whether the property is cost-effective to rent for profit.  
• Triple check court records to make verify there are no strange clouds or encumbrances on the property. 
• Verify whether there are any easements on the property. An easement allows your neighbors, the public, or utility companies to use a portion of your property.  If there are easements, carefully review those restrictions and decide if it works for you. 
• Is the property a cooperative condominium?  These types of properties have a lot of rules and regulations.  You do not physically own the property you live in, but you own a share of the organization that runs the building.  A small handful of lenders provide financing for co-ops. 
• Some condominiums and certain types of loans may prevent you from having the option of renting your property out, either for the first year or indefinitely.  If you plan to use your property for profit in the future, you will want to verify you can legally do so. 
• Many lenders require an appraisal, but you may want to require an inspection on the home before closing on purchasing it.  An inspection may reveal major repairs you can request the seller remedy.  

Once you have addressed these aspects of the home, you can feel confident in your selection and in making a compelling and winning offer.  Your real estate broker can discuss these aspects with you before making an offer as part of their real estate services.