10 Questions to Consider when Hunting for Property
Knowledge is power when it comes to investing in property so that means you have to ask, ask, ask before you make a decision.
Whether you’re a newbie or an old timer, it’s easy to skim past vital information. Here’s a little cheat sheet to help you stay on track.
Questions to Ask Yourself
1. What is my budget?
It may seem obvious but first thing’s first - can you really afford this? You know the right price range but have you considered all the costs?
Closing costs, renovations, repairs and other changes may have to be factored into the budget and the vendor is not necessarily going to be the one to inform you about all of these costs.
2. Will it provide the gains and returns I require?
Buying a property is one thing but maintaining it and making an income is another. What are your goals and will this investment achieve those goals?
3. Is it in the best location to attract quality tenants?
Take a look at your budget and determine how much you will need to charge tenants to maximize your return.
Is this location going to attract the type of tenants you are looking for?
4. How much should I offer and how can I make my offer stand out?
Offer too little and you could risk losing. Offer too much and you could end up overpaying.
First, look at the comparables in the area to try get the price right the first time and then see how much time the seller has to respond. If there is time, you may have to counter in that you might have to make multiple offers. You might even like to ask what other offers have been made.
Questions to Ask the Seller
1. How long has this property been for sale?
If it’s been on the market for a few months, there’s a good chance it’s overpriced.
2. Why are you selling this property?
You will be surprised with some of the answers you may get and sometimes this can leverage your negotiating angle.
3. What is the neighborhood like?
What eateries/outlets/schools are near by? Is there a lot of road congestion in this area? Are the neighbors noisy? What is the crime rate like?
4. Do you have similar properties listed?
Perhaps the first property you viewed is a little out of your budget or isn’t really what you were looking for. This question can help build your relationship with your agent which gets you on top of their mind if better a deal comes along.
5. Has the property had many owners changing frequently?
If the property has had a frequent change of hands, there could be some serious problems. This is good to know and you should also find out why past owners moved out.
6. What exactly is included in the sale?
This one is important. Make sure you see all of what you will be getting because you might be getting more of the property’s contents than you realize and this can be a hassle at times during move in.