3 questions to ask before buying an investment property

true-property-3-questions-to-ask-before-buying-an-investment-property

It’s buying and selling season. The spring and summer months are always busy for real estate.

If you’ve been thinking about getting into investing, the next few months are the perfect time to start.

A buyer’s agent is your best friend when it comes to negotiating a price for a property, but if you have decided to do it yourself, there are a few key things to keep in mind.

I’m sure you’ve looked and looked at a lot of properties by now, and if you are ready to get to the negotiation table, you’ll know what similar houses are selling for.

Remember, the key number here is the final sale price, NOT the asking price.

It is fairly common that an agent will list a house 5-10% more than what the vendor will settle for, so keep that in mind when you are heading into negotiations. The asking price is just the starting point. The final sale price could be quite a bit different.

So, before you barge on through to the negotiating ring, here are a few questions to ask the seller.

Why are you asking for that price?

Sometimes a vendor will take on their agent’s advice and list their property appropriately; others will have their heart set on a particular price and will-not-budge, no matter what their Realtor says. These types of sellers are always tough to negotiate with.

Have you had any other offers?

If so, you will then know what the competition is like for this property. A lot of competition means the final sale price won’t be as low as you would like.

How long has it been listed for?

If it’s been on the market for a while, the vendor may be more willing to negotiate. If it’s just gone onto the market, then the seller may be willing to wait around to see what happens.

Why are you selling?

If you know their personal circumstances – divorce, a death in the family, a move across the country, then you know they may be willing to settle quickly (aka willing to negotiate), which may provide you with the opportunity to buy it immediately.

What other important questions do you ask the seller before you purchase their property?

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