Buying a property will be one of the biggest purchases in your life. It’s important to ask the right questions before you submit an offer.
Here are 8 questions that you must ask your real estate agent when you buy a property in Australia.
1. What is the asking price for the property?
Knowing the price upfront helps you determine if it fits within your budget and sets a starting point for negotiations.
You can also ask how they arrived at this particular asking price, giving you an indication on the justification behind the pricing or whether they were pressured by the seller to list an above-the-market average price.
2. Why is the owner selling?
This will give you an idea of the seller’s motivation and whether they are motivated to sell quickly.
For example if they want to sell so they can move to a particular neighbourhood for their kids to start school, then you know how urgent the owner is likely to sell unless they have the capital to own two homes simultaneously. The real estate agent would often give you that context if you ask.
3. How long has the property been on the market?
If it has been on the market for a while (~3 months or more), it may indicate that the seller is open to negotiating on the price.
4. Are there any recent comparable sales in the area?
This question helps you understand the property’s market value and ensures you’re not overpaying. It’s also important to conduct your own due diligence but it will be easier to get a head start in terms of relative sale prices.
Make sure you ask for the date of the sale or if the agent can’t recall, ask for a ballpark month and year to ensure they are not quoting sales from more than 12 months ago when the market was likely different to what it is now.
5. Have there been any recent renovations or repairs on the property?
Knowing about recent renovations or repairs helps you assess the property’s condition and potential future expenses. Sometimes a real estate agent will claim they are not aware of any, so do your due diligence.
6. What are the property’s annual running costs, including strata fees, council rates, water rates and utilities?
Understanding the ongoing costs associated with the property helps you budget effectively and evaluate affordability. Strata fees are applicable if you are buying an apartment
7. Are there any upcoming infrastructure projects or developments planned in the area?
Being aware of upcoming projects can affect property values and quality of life in the area. For example if you are buying an apartment with a view and they are planning to construct an even taller building blocking that view in the near future, it can significantly reduce your future property value or stagnate the property growth value.
8. Are there any unique features or modifications made to this property in the property that are not mentioned in the listing?
The real estate agent can highlight specific features or modifications that may not be apparent from the online listing. Some things to look out for are extra walls put up or walls knocked down.
