Dennis is asking, "We are renting right now, but are looking to buy a home before the end of the summer. By the time we see a home listed on the market, it's gone. If you only had a few hours to decide if a home was right for you, what questions would you ask, Murph?"
And that's really an insightful question because there are four different things that I would ask if I had to make a quick decision. And even if I didn't have to make a quick decision, these are probably the first four things that I would want to know before I write an offer
Comparables
Number one is to show me the comparables. If you can find me the exact house and it sold last week, last month, or in the last three months, I want to see it. I want to know what that house sold for. That will give me a good idea of what the max is I should pay for that house.
Price Vs. Time on Market
Number two, what is the average percentage of list price the sellers are receiving in comparison to days on market? If a house has been sold in three days, did they get 100% of the list price? Did they get 110% of the list price? Did they get 95% of the list price? If a house has been sitting on for 90 days, did they get 94% of list price, 85% of the list price? What percentage of list price did they get, based on the number of days on the market?
Can I Add Value?
The third question, tell me how I can add value to increase my equity position in this home after I buy it? Even if I pay 110% of the value and I'm in a bidding war, can I still increase the equity position on that property because of a few things that I can do?
What Are the Terms?
Number four, what terms must I offer to get the house? If you have a good real estate agent, they should have a lot of transaction history and they should know the different things that you can do in your offer to make your offer more enticing.
So, if you have questions and you need answers quickly, because you need to get an offer in, here are the four questions I'd ask. If you have any other questions, hit me up in the comments below, or reach out, I'm here to help.
