4 questions to ask your real estate agent
You’ve been house hunting for weeks and finally you find “the one.” You know this is the perfect fit, a place to call your own, and you're ready to make an offer. You’ll want to act fast, but before you do, it’s a good idea to find out key information. Assuming you've decided to use a real estate agent, they will be the resource you will want to consult.
Here are four key questions to ask your real estate agent before making an offer on a home.
How many prior homeowners have there been?
This is among one of the first questions to ask your real estate agent. Not only will this tell you about the home’s age, but it will tell you about its desirability. If you’re buying the home from its original owners, it could be a sign that they took good care of it over the years – or it could mean that they did little in the ways of upgrades. Have a look at the renovations of the home to see if they’re modern. For example, if you’re buying a 1950’s bungalow, has the kitchen been upgraded or is the original kitchen still intact?
What renovations have been done to the home?
This is one of those questions to ask your real estate agent, and it ties into the first question. The kitchen and bathroom are typically the most expensive rooms in a home to renovate. Start by finding out if those have been renovated. If work has been done, make sure it’s quality workmanship. That last thing you want is to buy a home that has been quickly flipped to earn a profit with a bunch of shoddy renovations done. You’ll want to make sure any renovations done are up to code with the appropriate building permit.
Why is the home for sale?
When you’re buying a home, every bit of information helps. Don’t be shy to ask your agent this important question. Don’t think you’re being nosey. This is important information to have on hand. Common reasons for selling include moving to a bigger home, relocating to a new city and divorce. Sometimes the selling agent is chatty, so use this to your advantage. For example, if the homeowner is selling because they are moving to a new town, they could be in a hurry to sell and be more willing to accept a lower offer price. Such information is valuable for negotiations.
Is the home undervalued?
A common selling tactic in red-hot real estate markets like Toronto is to list a home below it’s true market value to cause a bidding war. You’ll want to work with your real estate agent to figure out how much it’s really worth because as the saying goes, a home is only worth how much someone is willing to pay for it. You can find out its value by looking at comparable properties – similar properties that have recently sold in your neighbourhood, and homes currently on the market. Based on these comparables, you can come up with an offer price that’s fair.