THINGS TO ASK YOUR REAL ESTATE AGENT WHEN BUYING

Buying a house can be one of the biggest decisions you ever make and will become the biggest asset in your life. If you are serious about buying a property, then knowledge is power. Finding the right agent that can guide you through the entire process, advising you of the market trends, and being honest in their dealings is crucial. You want to be reassured that you are paying a fair price for the property and are made aware of all the practical and logical information about whether a property is right for you. So, if you are making the big move, congratulations! Below is a list of essential questions to ask.

How long has the property been on the market?
The average time a home is on the market in Australia is around 30 days depending on what area it is located in. If a property has been on the market for more than this, it might be good to ask the agent why. Although, you might find there are a few reasons, such as perhaps it was under offer then the offer fell through. Don’t always be discouraged by this though, as it may not be something physically wrong with the property.

Completing reports – protecting your purchase
When purchasing a property, you as the purchaser have the opportunity to get reports done, which include structural, termite, electrical, and plumbing reports. Your building inspector should be able to pick up any potential issues there may be before settlement occurs. However, is it always a good idea to ask your agent if there are any issues with the property beforehand as legally, the seller of a property should reveal any issues or material facts that come with the property before putting it on the market. But keep in mind unless the seller is a builder or such a trade their knowledge may not be 100% accurate.

Can I obtain a property sales report?
When purchasing a property, this is probably the most important question to ask. You want to make sure the house you are buying is correctly priced and on par with the rest of the local market. A recent sales report or a CMA (Comparable Market Analysis) will allow you to see what similar properties have sold for in the area. It can tell you if the seller’s asking price is realistic and provide you with information about its estimated value, previous sales history, and details about the suburb and the market trends surrounding it. This can all help you make a reformed decision on what you are going to offer the sellers for their property.

Have the owners done any renovations lately?
The REA Property Seeker Survey (December 2020) found that 84% of sellers undertook some kind of renovation before they sold. As discussed earlier, when looking at a sales report or CMA, it will show you what similar houses sold for in the past. Although, this may not take into account recent renovations the owner may have undertaken, so you will need to ensure you factor this into the current market price when comparing it with how much the property was last sold for, and similar properties that you are comparing it too. Another thing you will need to check is that the renovations and work done to the property have been council-approved and if they involve any valid warranties.

What are the average utility expenses?
When purchasing a house, you will have numerous recurrent expenses to pay for yearly, quarterly, and bi-monthly. Not only will you have to pay consumption costs like you normally would in a rental property, but you will also need to pay the connection and service fees to your utilities such as your water, electricity, and gas. On top of this you are charged yearly council rates that can be up to $3,000 a year, depending on what area you choose to live in. Another thing to take into consideration is land tax. This only applies if the property you are purchasing will not be used as your principal place of residence and is valued at $300,000.00 or over. You will receive a notice of assessment for the land you own at midnight on the 30^th of June every year, which will advise you on how much land tax you owe.

Location, location, location.
An agent will be familiar with the demographics of the area you are buying into, as well as being knowledgeable about the suburb and any market influxes and changes it’s been through. It is always a good idea to write down the minimum requirements list for your new home. This might include schools, parks, and proximity to shops. Another example, if you are family, looking to settle down in a quiet neighbourhood, but there are developmental plans scheduled for down the track, then you might reconsider if it’s the best suburb to suit your lifestyle. It is important to find out everything you can about the location as you are not only buying a house, but you are also buying into an area.

Asking the right questions is important in finding the perfect property that suits you and your lifestyle needs. So, if you are looking for a stress-free experience, contact us today to experience the Umbrella Difference (08) 9779 9990.