What should we ask Real Estate Agents when buying a house?

[pwsolutions]

Can anybody please help me with that?

I am planning to buy another house nearby.
But what are the basic questions I should ask my Real Estate Agent before finalizing a deal?

[jayarr]

Choosing the right real estate agent can be a difficult and confusing process. However, working with the right agent may help you sell your house or locate your new home easily and quickly.

[francinemelbour]

Buying properties can be a very complicated legal issue within the state Victoria. When customers are looking at buying properties, agents are qualified to research land titles and ensure that when a deal is struck all transfers of title are handled in a completely fair and legal manner.

[R3aLEstat3]

You can ask if the listing is overpriced or not. If it is overpriced, you can ask the agent if he knows a much cheaper listing. Agents always are updated of new listings

[Ladyhawk]

Some questions I would ask are:

'Why are they selling the property?'
'How old is the property?'

There are some more here:

http://www.ljhooker.com.au/ask-lj-hooker/about-buying/what-kind-of-property-is-better
http://www.ljhooker.com.au/ask-lj-hooker/about-buying/finding-out-about-area-prices

[seemac]

I think one important thing to ask the agent is "what is the vendors situation?"

The vendor might be going through some sort of hardship like a divorce or a death in the family and may just be looking for a quick sale. They may also be in the situation where they are looking to stay in the house a little longer and are willing to look at a long settlement. Knowing a little about the vendors situation in good for your negotiating power and puts the ball in your court. Knowlede is power.

Just one other thing to remember is that the agent is working for the vendor and his only goal is to sell that property. Where ever possible get some independent advise and do your own research.

[Yamba Dave]

5 Great Questions for Buyers to Ask!

Buying a property is one of the most significant decisions you will ever make. It’s a decision that may only be made a few times in a lifetime and can involve a significant amount of time, money and emotion. It’s important you make sure you get it right!

That’s why it’s so important to spend the time and effort to thoroughly research each potential property before even thinking about entering into negotiation.

But where do you start and what questions do you ask? Here's a few to start.

Q1. How long has the place been on the market?

While this may seem like a very basic question, it soon becomes more if you do your homework before you ask it. Information on property listings is easily available which provides the date a property is first listed, and at what price. If you know the answer before you ask the question, you can weigh the veracity of the answer you get. You will then know if you are operating on a level playing field with the selling agent.

Q 2. Why are they selling?

Negotiation should begin as soon as you view a property. The more you can find out about the seller, the better the position you will find yourself in when it comes to working out a deal. If you know that the seller has already bought another home, or if they need to relocate to start a new job, then time could be an issue for them. An offer structured with their timeframe in mind may result in a better deal for you.

Q 3. Whose price is the asking price?

Most buyers never think to ask this question, but it can be one of the most important. Here’s why...
When someone decides to sell their property, generally the first thing they do is start ringing real estate agents to get a few appraisals. The agents know they are competing against one another to win the listing and the home seller is usually only interested in two things: how much can you get me for my home and how much do you charge?

Many times the agent that quotes the highest potential list price is the one that wins the listing. While it is true that agents must justify their appraisal price and they do this by comparing what similar properties have sold for, it is a little bit like comparing used cars. Just because one car is about the same age as another and looks similar on the outside, doesn’t mean that they are worth the same on the open market. There may be vast differences in mileage, condition and added extras. The same is true for properties. You have to make sure you are comparing apples with apples.

The agent usually quotes the seller a price range in which they believe the property should sell. Then the opening list or asking price has to be worked out. This has no real bearing on the price range the agent believes the property should sell for. The list price may have what is commonly called ‘room for negotiation’ added on by the agent, or it may be the price the seller ‘needs’ to get before they will sell. There are many sellers out there who will only sell if they get ‘their price’ which has no real relationship with what the property is worth.

If the asking price has been set by the agent, they should be able to provide you with comparable recent sales they used to set the price. If, on the other hand, the price has been set by the sellers then it would be fair to ask the agent to justify the price.

Q 4. Is there any other interest in the property

The usual reply to this from most agents is ‘yes we have had quite a few recent inspections’. After all, the selling agent is working for the seller and having competing buyers leads to higher prices and more money for them. It’s important when you ask the question to watch the body language that comes with the reply. You’ll quickly get a feel for the real situation. Ask questions about other supposed buyers to try and learn more.

Q 5. What will they take?

You may not get an answer every time, but you would be surprised at how often selling agents will let slip, in one way or another, just what the sellers are hoping for. After all, selling agents need to sell properties to make a living and ‘nursing’ negotiations along is quite common. It’s just a process of moving two parties closer together, and they are usually armed with information about both the sellers and the buyers.

This is another great reason to use a Buyers Agent, as your personal information remains private and can’t be used against you in a negotiation.

Cheers

Dave

[AMSNZ]

I don't belive there is a limit of what you can ask an RE agent. The trick is to see how much information you can get out of them.

I have approached RE agents and got the life history of the vendor from them, something if I found an RE agent selling my property was telling people I would immediatley fire.

My advise - go and ask what you like and see what you get away with!

[Juzzy82]

One thing you should always get is the section 32.

Check what title(s) cover the land, any water/sewerage line running under your property (will make it hard to develop down the track), rates, building permits for renovations, etc.

I guess it's not really a question, but never-the-less is good to get and should prompt some questions of the agent.

[bemetoday]

Smart consumers interview potential real estate agents before deciding on whom to hire. Just as you are sizing up the potential for a good fit, rest assured that the real estate agent will likely be interviewing you, too. Be wary of agents who don't ask you questions and probe for your motivation. You wouldn't work with just any agent off the street, and good agents are just as selective about their clients, too.

[CSQTownPlanner]

I agree with AMSNZ. Really there is no limit of questions we can ask an real estate agent. It would be better ask what we like and see what we get. Thanks for nice advice.

[PropertyAcademy]

5 Great Questions for Buyers to Ask!

Buying a property is one of the most significant decisions you will ever make. It’s a decision that may only be made a few times in a lifetime and can involve a significant amount of time, money and emotion. It’s important you make sure you get it right!

That’s why it’s so important to spend the time and effort to thoroughly research each potential property before even thinking about entering into negotiation.

But where do you start and what questions do you ask? Here's a few to start.

Q1. How long has the place been on the market?

While this may seem like a very basic question, it soon becomes more if you do your homework before you ask it. Information on property listings is easily available which provides the date a property is first listed, and at what price. If you know the answer before you ask the question, you can weigh the veracity of the answer you get. You will then know if you are operating on a level playing field with the selling agent.

Q 2. Why are they selling?

Negotiation should begin as soon as you view a property. The more you can find out about the seller, the better the position you will find yourself in when it comes to working out a deal. If you know that the seller has already bought another home, or if they need to relocate to start a new job, then time could be an issue for them. An offer structured with their timeframe in mind may result in a better deal for you.

Q 3. Whose price is the asking price?

Most buyers never think to ask this question, but it can be one of the most important. Here’s why...
When someone decides to sell their property, generally the first thing they do is start ringing real estate agents to get a few appraisals. The agents know they are competing against one another to win the listing and the home seller is usually only interested in two things: how much can you get me for my home and how much do you charge?

Many times the agent that quotes the highest potential list price is the one that wins the listing. While it is true that agents must justify their appraisal price and they do this by comparing what similar properties have sold for, it is a little bit like comparing used cars. Just because one car is about the same age as another and looks similar on the outside, doesn’t mean that they are worth the same on the open market. There may be vast differences in mileage, condition and added extras. The same is true for properties. You have to make sure you are comparing apples with apples.

The agent usually quotes the seller a price range in which they believe the property should sell. Then the opening list or asking price has to be worked out. This has no real bearing on the price range the agent believes the property should sell for. The list price may have what is commonly called ‘room for negotiation’ added on by the agent, or it may be the price the seller ‘needs’ to get before they will sell. There are many sellers out there who will only sell if they get ‘their price’ which has no real relationship with what the property is worth.

If the asking price has been set by the agent, they should be able to provide you with comparable recent sales they used to set the price. If, on the other hand, the price has been set by the sellers then it would be fair to ask the agent to justify the price.

Q 4. Is there any other interest in the property

The usual reply to this from most agents is ‘yes we have had quite a few recent inspections’. After all, the selling agent is working for the seller and having competing buyers leads to higher prices and more money for them. It’s important when you ask the question to watch the body language that comes with the reply. You’ll quickly get a feel for the real situation. Ask questions about other supposed buyers to try and learn more.

Q 5. What will they take?

You may not get an answer every time, but you would be surprised at how often selling agents will let slip, in one way or another, just what the sellers are hoping for. After all, selling agents need to sell properties to make a living and ‘nursing’ negotiations along is quite common. It’s just a process of moving two parties closer together, and they are usually armed with information about both the sellers and the buyers.

This is another great reason to use a Buyers Agent, as your personal information remains private and can’t be used against you in a negotiation.

Cheers

Dave

Dave already said it all. But to add, you can also ask "What other homes are there in competition to this property? " :)