Questions to Ask When Buying a House

Information on finances, the home’s condition, and the neighborhood are critical for first-time homebuyers.

Alani Asis
Written byAlani Asis
Alani Asis
Alani Asis
  • 3 years of content writing

  • Bylines with leading financial publications

Alani is a freelance writer specializing in personal finance. She aims to make complex topics more approachable through fun, digestible content.

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Courtney Mikulski
Courtney MikulskiSenior Editor, Auto
  • Más de 3 años produciendo contenidos sobre seguros y finanzas personales

  • Principal artífice de la puntuación de calidad de Insurify

Los profundos conocimientos de Courtney sobre finanzas personales van más allá de los seguros y abarcan las tarjetas de crédito, los préstamos al consumidor y la banca. Le encanta crear contenidos prácticos.

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Updated December 15, 2023

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If you’re in the market for your first house, you may be excited but nervous. Buying a home for the first time requires a lot of work, but the good news is that your dream home is within reach. Asking the right questions about finances, location, home condition, and home insurance can help you get a better understanding of the real estate market and if you’re getting a good deal.

Consider creating a list of questions and organizing it by the property’s cost, condition, and location. Getting answers to those questions will give you a good idea of how to proceed with a potential home. 

Here’s a closer look at the most important questions to ask when buying a house for the first time.

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23 financial questions to ask yourself and your real estate agent

Your real estate agent will guide you throughout the homebuying process. They’ll also speak to different parties on your behalf, like the seller’s agent, to take the next steps toward a sale.

A great real estate agent will do their due diligence to ensure you make well-informed financial decisions. The best way to make sure you’re informed is by asking questions about the home-buying process you need help understanding or want more information on.[1]

Before starting the home search, you should also ask yourself questions about your financial situation, needs, wants, and budget. If you don’t ask questions about a property’s finances, you may be blindsided by unexpected costs, causing financial strain.

Questions to ask yourself:

  • How much have you saved for a down payment?

  • What price range are you comfortable with?

  • Can you afford the up-front costs of buying a home?

  • Does your credit score qualify you for a mortgage?

  • Do you have the income to manage the ongoing costs of owning a home, like mortgage payments, utilities, home insurance, and more?

  • What “must-haves” are you looking for in your new home, and are they in your price range?

  • What are your future plans for the home?

  • Do you have outstanding debt that might make paying your mortgage challenging?

Questions to ask your real estate agent:

  • What are the estimated property taxes for the home?

  • How do the property taxes compare to other properties in the area?

  • What factors will affect your homeowners insurance premium?

  • Are homeowners association (HOA) fees required to live on the property?

  • What expenses do HOA fees cover?

  • What’s the average monthly utility cost for the home?

  • Do you need private mortgage insurance?

  • What are the anticipated closing costs?

  • What’s the minimum price you can offer for the home sale to occur?

  • How might your financial situation influence your mortgage interest rate and loan term options?

  • What are the average mortgage interest rates?

  • How can you secure the most favorable mortgage interest rate?

  • Does the state offer any mortgage programs or incentives for first-time homebuyers?

  • How does the seller’s asking price compare to other properties in the area?

  • Is the property in high demand?

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22 house-specific questions to ask your agent and seller’s agent

A home is an important investment, so you’ll want to ensure you’re getting a good buy. The last thing you want is to buy a house with major issues and sink your funds into expensive repairs.

To find the right home, ask your real estate agent or have them ask the seller’s agent about the state of the property. After asking questions, you should get a sense of whether the home, systems, and appliances are in good condition.

Here are a few important questions for your real estate agent or the seller’s agent.

  • Why is the seller putting their property on the market?

  • How long have the previous owners lived in the home?

  • How long has the property been listed on the market?

  • When was the property built?

  • Have there been any recent major repairs or renovations?

  • Does the property have any structural issues?

  • What’s the age and condition of the roof?

  • Are there any known problems with the home’s plumbing system?

  • Are the electrical systems up to code?

  • Has the property been inspected for pests and mold?

  • What’s the age and condition of major home appliances?

  • What are the age and condition of the HVAC systems?

  • Does this property have a claims history? If so, what was the incident?

  • Is there a lien on the property?

  • Does the property receive regular and proper maintenance?

  • Has the property been tested for radon? What were the results?

  • What are the conditions of the siding and gutters?

  • What’s the overall condition of the exterior?

  • Have any landscaping improvements been made to enhance the home’s appearance?

  • What appliances, furniture, light fixtures, or other interior items are included in the home sale?

  • What security systems does the home have?

  • Are there any boundary or common-space issues with neighbors?

Comprehensive List of Home Insurance Discounts (2024)

Comprehensive List of Home Insurance Discounts (2024)

22 questions to ask about the location

Your first house is ideally somewhere you’ll live for a long time. So, you want to ensure you choose a location with your and your family’s best interest in mind. Asking questions will make you aware of the risks your home is susceptible to, like theft, vandalism, or natural disasters.

Location-specific questions also help determine if the area matches your lifestyle and if you’ll see lucrative returns on your home in the future.

These are some questions to ask about a property’s location:

  • Is the home located in a high- or moderate-risk flood zone?

  • Are there any risks of natural disasters in the area, like earthquakes, wildfires, or hurricanes?

  • What are the noise levels in the neighborhood during different times of the day?

  • What local schools is this neighborhood zoned for?

  • Is the property in a good school district?

  • How long is the commute from your workplace?

  • How long is the commute to downtown?

  • What’s the condition of the roads in the neighborhood?

  • Are there any upcoming development projects or zoning changes that might affect the property value?

  • What are the crime rates?

  • Does the neighborhood have watch programs or community safety initiatives?

  • Is public transportation accessible?

  • Is the neighborhood walkable or bikeable?

  • What local amenities are available in the area?

  • Are there social events or gatherings that the community participates in?

  • How strong is the cellphone reception on the property?

  • How’s the performance of broadband service in this area?

  • How close are essential services like hospitals, police stations, and fire departments?

  • Are there nearby community facilities such as libraries, community centers, or places of worship?

  • How’s traffic in the area, especially during peak hours?

  • What’s the average annual growth for properties in this area?

  • Are there any neighborhood-specific regulations that you should be aware of?

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Homebuying FAQs

Understand why home insurance companies might deny a claim, and check out the answers to common questions about buying a home below.

  • What are the three most important things to consider when buying a house?

    Consider the property’s cost, condition, and location when house hunting. Being fully informed on those factors will help you make decisions that align with your needs and financial situation.

  • How big should a down payment be?

    Real estate experts recommend a down payment of 20% of the home’s price. Although some loan programs are available that allow you to pay less, following the 20% rule helps you avoid needing private mortgage insurance (PMI).

    PMI is a requirement lenders enforce to protect their investments. You have to pay a premium to get this insurance, which increases your monthly payments.[2]

  • How much is homeowners insurance?

    The average homeowners insurance premium is $2,724 per year, or $227 per month. However, insurance costs vary highly based on location, home replacement cost, age, condition, claims history, and more.

  • How can you know if a home is in a flood plain?

    An easy way to determine if your home is in a flood plain is by asking your real estate agent. However, you can check your property’s risk of flooding by using FEMA’s flood map. If the home’s location is in a blue-shaded region, it’s a high-risk area. Your lender may require you to purchase flood insurance if your home is in a flood zone.[3]

Sources

  1. U.S. Bureau of Labor Statistics. "What Real Estate Brokers and Sales Agents Do."
  2. Consumer Financial Protection Bureau. "How to decide how much to spend on your down payment."
  3. FEMA. "Who's required to have flood insurance?."
Alani Asis
Alani Asis

Alani Asis is a personal finance freelance writer with nearly three years of experience in content creation. She has landed bylines with leading publications and brands like Insider, Fortune, LendingTree, and more. Alani aims to make personal finance approachable through fun, relatable, and digestible content.

Courtney Mikulski
Edited byCourtney MikulskiSenior Editor, Auto
Courtney Mikulski
Courtney MikulskiSenior Editor, Auto
  • Más de 3 años produciendo contenidos sobre seguros y finanzas personales

  • Principal artífice de la puntuación de calidad de Insurify

Los profundos conocimientos de Courtney sobre finanzas personales van más allá de los seguros y abarcan las tarjetas de crédito, los préstamos al consumidor y la banca. Le encanta crear contenidos prácticos.

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