Home buying questions for agents, lenders and sellers

Do you know why they are selling?

The listing agent gives the tidy version, and the neighbor may know about the job move, the divorce or the long feud with the house behind. A seller with a deadline negotiates differently from one testing the market, so pass what you learn to your agent before the offer is written. Treat it as hearsay until something else supports it.

From: Questions to Ask Neighbors When Buying a House

What paperwork do I have to return each year, and what happens if I miss it?

Servicers generally send a yearly form asking you to confirm that you still live in the home, and an unanswered one can start a default process. Find out which month it arrives, whether a call or a second letter follows a missed one, and how long you get to put it right. A form like this is easy to lose during a hospital stay, which is the reason to ask.

From: Questions to Ask About a Reverse Mortgage

What tends to make a valuation come in lower than owners expect?

Asking generally rather than about your house gets an honest answer: deferred maintenance, functional layout problems, unpermitted additions, a busy road, or a market that has moved since the neighbours sold.

From: Questions to Ask an Appraiser

What happens to my deposit if I withdraw, or if the company cannot finish?

Whether a deposit has to sit in escrow or a trust account, and whether any fund or bond stands behind it if the builder goes under, depends on the state or province. Get the name of whoever holds the money, and read which reasons for withdrawing return it and which forfeit it.

From: Questions to Ask a New Construction Builder

Does it matter if any work has started on the lot before we close, such as clearing, a driveway or a delivery of materials?

Many lenders want the site untouched until their loan is recorded, because work done earlier can let a contractor's claim rank ahead of the bank's. How that works depends on the law where the land is, so get this lender's rule before anyone brings a machine onto the lot. If something has already been done, say so on the first call and hear what they would need to go ahead.

From: Questions to Ask a Lender About a Construction Loan

Is anyone living there now, and are they on a lease?

A tenant, a relative staying rent free, or an occupant who is not on any paperwork each change what you are buying. Vague answers about who is inside are worth taking seriously.

From: Questions to Ask Motivated Sellers