So you’re looking to get into the housing market and want to make sure the property you are about to purchase is a worthwhile investment. Searching for the right home can be a very stressful, exhausting and tedious process as well as financially detrimental if you do not have all the necessary information. That’s where the real estate agents come into play. They can be a great resource and of great help to your future income if you walk into the house well-prepared. Just make sure to ask these questions to get on track to profitability.
1)“How long has the house been on the market?”
You always want to make sure you are getting the best deal possible. If the home for sale has been on the market for over two months, there is a chance the owner might be trying to sell you the property for more than it should be. Keep an eye out for this. There could also be a chance that there is something wrong with the house. Typically if a house has been on the market for this long, there’s a catch. Maybe there is something broken. Maybe there are some issues with the roofing or interior features that other potential buyers found unattractive. Typically houses are fairly quick to sell in America with the booming real estate industry. Someone usually wants it badly–whether they want to flip it, rent it or live in it. It’s an opportunity.
2)”Does anyone live in the house currently? Is it vacant?”
Profit is in the buying, not the selling. If the house is vacant, this could leave the potential buyer with a huge advantage in the negotiation process. It will become a buyer’s market. The buyer has the upper-hand in getting a great deal if this is the case. It would be better for the current owner to sell the home to the buyer for a little less than to keep the price where it is and wait a couple extra months to sell the home, for example. The longer it is vacant, the worse the house looks.
3)“What was the original price of the home? Has the price of the property changed since?”
Again, this could lead the potential buyer into knowing how much wiggle room there is to work with when it comes time to negotiate. You will also find out where the current owner started the pricing of the home. This will give you an insight as to what negotiation tactics the current owner may be trying to use. Again, the profit is in the buying, not the selling. Get the best deal at the best price. If the house has fluctuated in price, use it to your advantage when it comes time to talk about money. Gather as much information as you can. If the owner could not sell it at the original price and had to lower it, it may mean that he or she is struggling to close the deal.
4)“What is the current monthly rate for rent in this area?
You always want to know about the comparable properties. This is even more true for rental properties. To ensure that you are making a solid investment, make sure you know how much you should expect to be receiving from rent on a monthly basis. You need to know how much you can charge tenants in order to be fair, competitive and profitable.
5)”Are there good growth opportunities in the area? Main employer? Lots of families? Lots of renters in the area? What makes it attractive?”
Location, location, location. These are the top three rules in real estate. You want to know the market, the area and the potential buyers for the property. You want to know that there are schools nearby, jobs in the area and families with a steady source of income. You want to know that there is a need for others to be in this area and a neighborhood where tenants want to be. If the property is in an attractive neighborhood with growth opportunities, there will be a higher demand for people wanting to move into the area. When the demand is high, the opportunity is bigger.
Original Post – 5 questions to ask when buying a home