Important questions to ask before you buy that dream home

Buying a home is an exhilarating step and a big decision. Before you sign on the dotted line, make sure you have most of the answers to these important questions.

How much can I afford?

Your dream home may come with an unrealistic price tag. To avoid heartache further along the bond application journey, it’s advisable to use BetterBond’s online affordability calculator to work out how much you can afford. Better yet, work with a bond originator like BetterBond to apply for bond pre-approval. That will give you a firm idea of what you can spend on your bond repayments every month. This can be done online, at any time and at no cost. Also, pre-approval improves your approval rate and speeds up the application process. That's because all your important documents are already in the system. 

Always consider the hidden costs associated with buying a home. You have to budget for more than just the monthly bond payments. There will be initial transfer costs and other associated fees, and once you are a homeowner you must make sure you have funds available for ongoing maintenance and repairs. It is therefore important to ask yourself some honest questions about your budget, your income and your monthly financial commitments when buying a home.

Is this the best location?

Bear in mind the real estate motto of “location, location, location”. Before you start browsing online for homes, make a list of things you expect or need from your neighbourhood. Do you have young children that will have to attend a nearby school, for example. Is access to public transport important? Find out as much as you can about the area you are thinking of buying in while you are looking at properties. 

What do I need to know about the area?

Once you’ve found a possible home, chat to real estate agents in the area to find out about the benefits of living there. To get a more comprehensive picture, scan relevant social media platforms and neighbourhood groups to see what other people are saying about the area. If you pick up comments about recent crime spikes, or frustration about poor municipal service delivery, it may not be an ideal suburb to live in. 

Why is the home on the market and how long has it been listed?

Don’t be afraid to ask the seller why the home is on the market and for how long. If the home is in a sought-after area, but has been on the market for a while, there could be issues with the property that you need to be aware of. Perhaps the property's price is to high. Have a look at online listings to compare prices of similar properties in the area. This gives you a good idea of the value of the home you would like to buy.

Do you have up-to-date plans for the home?

You need to know about any structural changes or renovations to the home. Ask for council-approved architectural plans so that you can see what changes have been made and what permissions are in place. Ask whether the home has heritage status because this could affect any renovation plans you may have. It may also mean that the home will require more maintenance and upkeep. 

What are the zoning regulations in the area?

You don’t want to buy your dream home only to find that your neighbour in front of you has permission to build up to 50 metres, which would obstruct your views. Your neighbourhood may seem quiet, but if a surrounding plot is zoned for commercial use, you may soon find it home to a shopping centre or business. Be mindful of applicable zoning regulations and the implications for you. 

Are there HOA rules and restrictions?

If your home is in a communal living estate managed by a Homeowners' Association (HOA), ask about the rules and regulations. HOAs usually have rules for property maintenance. For example, how the exterior of the home should look and the way the owner should maintain the garden, the number of pets allowed, the use of communal areas such as the pool and gym, how many people may live in the home and noise levels at certain times of the day. The HOA will also collect fees or levies from each homeowner towards maintenance, security and other related costs. Ask about these costs upfront. 

What fittings can I keep when I buy the home?

The seller could include some of the home’s fittings in the sale price. There could be bespoke outdoor furniture, for example, or a standout light fixture that you would like to keep. Ask if you can keep these as part of the conditions of sale.

Can I visit the home a few times?

Get a feel for the property by visiting more than once and at different times of the day. While a road may seem quiet during the day, it could turn into a thoroughfare for school traffic during peak hours. Chat to the owners and ask them what they loved about the home. Hopefully they will also be honest about any issues they encounter. You can also ask them about safety. 

Can I lift up the carpets and look through the cupboards? 

It’s not rude to ask to see the floors that may be under carpets or to open cupboards to look for signs of damp or beetle damage. On that note, ask if the home is prone to damp or mould. You could also request a professional home inspection to detect major faults, dampness or non-compliant electrical wiring or geyser installations. 

Have there been any recent claims for massive damage from floods or fire?

You should know if there has been recent damage that could have caused structural changes to the home or allowed toxic gases inside. 

What are the estimated costs of monthly utilities and are there energy-efficient features?

Find out how much the seller pays each month on water and electricity to factor these costs into your budget planning. You should ask if there are energy-efficient features such as solar power, rainwater harvesting or boreholes, for example. Ask about LED lighting and water-wise fittings which could also save on your electricity and water bills. 

Can I see the home’s compliance certificates?

Ask for the following certificates so that you can have some peace of mind that the home complies with regulation standards. These are legally required before transfer of property. You can request them sooner if you have any doubts about any of these aspects:

When can I move in?

You need to ask whether occupation will be immediate after finalising the sale. If not, the seller may need to pay occupational rent until they move out. If the seller needs to move into another home, they will be eager to sell and finalise the transfer as quickly as possible. Ideally, you need to know whether the home will be vacant and ready for occupation as soon as you finalise the transfer. 

Buying a home is a big decision that is not to be taken lightly. Don’t be afraid to ask questions so that you can make wise decisions.