Looking to save money in Real Estate? Ask these 8 questions.
When you’re getting ready to invest in real estate, money might be considered to be the easiest aspect. The difficulty lies in landing the right deal with a broker that responds to you. While analysing deals here are 8 questions you definitely should ask your broker before taking any steps.
1. When was the last trade of the property?
When you’re interested in a property, you need to ask the broker when the property was last sold. Many brokers find this question the hardest to answer and try very hard to ignore the same, with an “it doesn’t matter.” However, you need to stand your ground and tell them that you need to know, if they don’t know, you have a problem.
2. How much did it last sell for?
Brokers have a hard time answering questions that push them outside their comfort zone. This is why you must ask your broker the last selling price of the property you’re currently interested in. However, stay resilient and knack them for an answer. Tell them that you want to check if the seller is making a profit in the industry and do make it a point to tell them that you don’t want to buy a property where someone lost money as it’s just not an investment you’d like.
3. How would they go about rating it?
When you’re on the lookout and find a property that you feel is a 10, ask your broker to rate it for you. Ask them about the various amenities and features you’re looking for in a property and have them rate the property in regards to your wish list.
4. What is the debt-underwriting?
You absolutely need to know the percentage of the purchase price a lender will provide for the property. If your broker has a habit of straying away from this question, it’s probably too high and you need a new broker and a new property.
5. What do you like most about it?
Ask your broker what they think is the best about the property, and be sure not to fall for the generic, “it’s everything you want.” answers. This is where you get to know the real details that a novice may tend to miss out on.
6. Ask them the shortcomings
Nothing is perfect and neither is the property. Ask them the shortcomings of the property for some honest feedback. In the real estate business, honesty is the best policy and if the broker doesn’t answer or says there is none, you need to beware.
7. What else is unlisted or off-market?
A good broker always has a few cards up their sleeves. A broker with only one listing is a broker who is not respected in the industry and you need to find a new one.
8. Ask them if they have a favourite buyer
If a property is good, it will have more than one prospective buyer. If your broker tells you that you’re the only one, either they’re lying or the property is a terribly bad deal.