When you decide to purchase a property, you’ll most likely have to deal with the seller’s agent. In this article, we will share with you a number of important questions you should be asking them. This will help ensure the property you are purchasing suits you and your objectives, and that potential problems are dealt with beforehand. These questions include:
1. The reason for selling the property. Asking this question will help you gauge their willingness to sell the property. If, for example, the seller is looking to sell it as soon as possible (e.g. they’re moving somewhere else), then you could use this knowledge to negotiate a better deal. In addition, this will enable you to create a timetable for the purchase.
2. The number of offers they received. This is another way to gauge a seller’s willingness to let go of the property. If the property has received a large amount of offers, then you have to be prepared to provide a deal that’s more attractive than those they have already received. This will also give you an idea of why they rejected previous offers, allowing you to customise yours according to their needs. Meanwhile, if offers are few and far between, you can use this to your advantage, and ask for a lower price.
3. The lowest price they’re willing to accept. While many agents will hesitate to answer this question right away or in a straightforward manner, those who do will help make the deal proceed faster, so it’s worth asking them about it.
4. The condition of the property. Naturally, you have to ask about the condition of the property as well. This will help you determine if there are previous, current, or potential issues with it. Knowing what these issues are could potentially help save you from a lot of headaches once you own the property. Alternatively, if you choose to purchase it anyway, it will help you determine how much it will cost you to deal with any issues. You can also use any issues as a tool to bargain down the price of the property, especially if there are any major ones.
5. The costs of owning the property. When you purchase the property, chances are your expenses won’t be limited to just the repairs and the mortgage repayments. With this in mind, ask the agent what the other costs will be, such as strata levies and council rates.
Doing Your Own Research
Of course, you don’t have to depend on just the agent when making a decision. This is especially the case when determining the viability of the property for investment, and its fair market value. You can refer to property reports and real estate magazines to help you dig deeper when doing your research. Nevertheless, an agent is more likely to help provide you with more specific information, not only in regards to the specific suburb in which you wish to purchase, but also about the property that you are looking to buy.
Written by Steve Milligan, Mortgage & Business Finance Broker at Launch Finance.