When shopping for a home, most of us have a long list of requirements. You might want your next house to be near family or work. Maybe you’re looking for a big backyard, the perfect space to set up a home office or easy access to public transportation.
Most shoppers naturally ask questions about the local housing market, crime in the area and noise levels. But if you’re concerned with finding an affordable home, there are a few lesser-known questions you can ask to unearth important information. With these helpful questions in-hand, you can potentially find yourself big savings.
Six questions every homebuyer should ask
Before you buy your next home, make sure you get the answers to these crucial questions. You might have to do some research, talk to your real estate agent or chat with local residents to find what you’re looking for, but the end result is worth the footwork.
1. What are the typical housing costs in this area?
Understanding local expenses is critical if you’re debating between renting or buying. Although buying might seem cheaper on the surface, since some of the money goes to building your own wealth, it can be more expensive than you think.
For example, a study from LendingTree found that in the 50 largest metropolitan areas of the U.S., it’s cheaper to rent. Homeownership can easily be more expensive than renting if you, as the owner, have to put a lot of money into expenses that you won’t recover. For example, repairs and maintenance related to severe weather, high utility costs caused by extreme temperatures or trash collection fees that get added to your mortgage.
If you decide to rent instead of buy, consider one of the five cities where renters get the best deal.
2. Do I qualify for assistance?
You might qualify for homebuyer assistance based on the state or city where you want to buy, or through a local nonprofit. Each program is different, but for many buyers — especially those with limited income, small down payments or poor credit — special homebuyer programs can be the key to finding an affordable home.
This assistance can include any or all of the following:
- Access to low-cost housing
- Grants or loans for your down payment or closing costs
- Minimal down-payment requirement
- Low-interest mortgages
To find out what homebuyer resources are available, look online for “first-time homebuyer programs” and “homebuyer assistance programs” that are backed by government agencies or run by nonprofits, and ask your lender for recommendations.
3. What are the property taxes in this area?
Before you commit to moving, ask about the local taxes. You might naturally assume that your property taxes will be the same wherever you live, but that’s definitely not true.
According to a 2023 property tax analysis from ATTOM, Northeastern states have average taxes up to 10 times higher than the rest of the U.S. But it’s even possible for two neighboring cities to have different tax rates. On top of that, if property taxes in the state are based on the home’s value, and not the sale price, they can increase yearly.
To estimate the taxes you’ll pay in a given area, look for an estimator tool for the city or township.
4. How much are the HOA dues?
If you buy a condo or another property where you share space with other residents, you’ll likely have to pay fees to the homeowners association, or HOA. These fees cover the maintenance and upkeep of the property, so they will likely increase over time, and you can face foreclosure if you don’t pay them.
Your real estate agent may be able to give you details about the HOA dues and rules, but you can also request the information directly from the HOA.
5. Can I lower my homeowners insurance?
You can miss out on as much as $1,000 a year in savings by going with the first home insurer you find. Here are a few ways to bring down this expense:
- Compare rates from multiple insurance companies
- Bundle your home and auto insurance
- Ask about special discounts
- Install security devices
- Improve your credit scores
6. What’s really important to us?
It’s tempting to move to the hot neighborhood that everyone’s talking about, but trendy neighborhoods usually come with a higher price tag.
Instead of focusing on a specific zip code, focus on your must-haves. Take the time to list your priorities, and be open to finding them in different locations. You might not end up in the trendiest area, but you could still discover the perfect (affordable) neighborhood.