Welcome back guys and in todays video we’re answering what are the top five questions you should ask the real estate agent when buying a house.
#1. Has a building inspecting been conducted and were there any findings? Asking questions about the condition of a property is a great thing to do, because if a sale previously failed based on a building inspection the real estate agent doesn’t have to tell you this information, unless you specifically ask. The real estate agent is not aloud to lie about this if asked but they also aren’t obligated to tell you. unless you ask. So make sure you ask.
#2. Is there a permit for the extension? Often building works will be carried out by the owner of the property without first getting a permit from the council. almost 100% of the time when this happens the works haven’t been done exactly to the councils guide line, such as a structure being closer to the neighbours fence than stated in the guide lines.
Normally people get away with this until a neighbour complains or the property goes up for sale and this is where you come in. Councils often check sales photos to make sure they look the same as the plans they have on file, unfortunately this can often happen after the sale, once you have become the new owner. In the area i live, if the structure has been there for more than 7 years, they will leave it there, however if its a brand new deck that the owner has built for the sale. Odds are youll be asked to pull the whole thing down at your cost.
I have had many clients over the years try to get a permit from council after they have build a deck only to be told to pull it down. You can find out if a preperty you are thinking of buying has all the permits by speaking to the planning department at the local council.
#3. Was the property owner occupied or rented out? This is a great question to ask because it unlike ” why are the owners moving” is likely to give you an idea about the owners intensions. If the property has been a family home for years typically the owner will be emotionally attached to the property and think its worth more than it actually is.
If its a rental property however often they’re selling the property because they want the money for something else that has now caught their eye which means they want a quick sale. If you’re in the position to offer a quick settlement and minimal conditions (Making the transaction easy for the owner) they’re more likely to accept a offer for a lower price, than someone who is emotional about their home and thinks its better than every comparable property.
#4. If the property is an auction you can ask ” Will the owners accept offers prior to the auction. This is one of the best questions to ask regardless of if you want to buy the property prior to auction or not.
Often an owner will agree to have an auction but they will express to the agent they would really like an offer prior. By asking the agent “would the owners consider offers prior to auction” you can get a feeling for how many people are interested in buying the property.
If the agent says “yes the owners would consider selling prior” this can mean that there is not a lot of interest from multiple buyers. If however the agent says no the owners are set on going to auction you know that they have a fair bit of interest, if they’re declining to take offers prior.
#5. How long has the property been on the market? This is a great way to determine the interest level of other buyers in the property and also how much you should offer. By asking how long has the property been on the market you can gage how the sale of the property is going. In the area i live the average days on market is around four weeks. In other parts of the world like new york however 6 months is the average days on market. By first finding out the average day on market in your area, you can then work backwards and decide if the property has been on the market longer than it should have. To give you an example if a property in my area has been on the market 8 weeks, something is wrong. Now that could be that the house is over priced and the owner has had offers that they have declined or that the price is so high no one has bothered making any offers. It could also mean that the property failed a building inspecting and the first sale didnt go ahead but there has to be a reason that the property has taken longer than other properties in the area to sell.