MID Top 10 Smart Questions to ask a Real Estate agent when inspecting a property

1. How long has the property been on the market?

A Smart question to ask in investigation areas for negotiation. Once a property has been on the market for 6–8 weeks, many sellers and agents will become anxious and begin to suspect that the price is too high.

 

2. Will they negotiate on price and why are they selling?

Again, a Smart question to ask in determining the eagerness of the seller and therefore the potential for further negotiation.

 

3. Have they had any offers so far, if so what were the prices?
What is the lowest price that they’ll accept?

Use this question to investigate how previous negotiations have fared to determine the seller’s sweet spot. Be aware that some Agents may play mind games or not reveal this information.

 

4. What are the council rates, water rates and strata levels and other expenses on this property?

You will need to understand as much as you can about the expenses of a property investment to make a Smart Investment Decision. You can then use these amounts to plug into the MID Property Wizard to help you make a Smart Investment Decision

 

5. What are the current property management arrangements and how much do they cost?

Another substantial expense that should not be ignored when making a Smart Investment Decision. You will also need this detail to use the MID Property Wizard.

 

6. What is the current rent on the property and is there a rental guarantee?

How much rental income are you going to make? You will also need this detail to use the MID Property Wizard to analyse your investment.

 

7. What is the rental growth on this property year on year?

Is your rent going to grow, because inflation certainly won’t stop. 
You will need to know the rental growth potential to make a Smart Investment Decision by using the MID Property Wizard. 

 

8. What are the historic vacancy rates (as a percentage) for this property?

Some neighbourhoods are harder to rent out then others. When your property isn’t generating rent, you’re not making money and therefore incurring a loss. You will need to understand the % vacancy per annum and plug this information into the MID Property Wizard to analyse your investment.

 

9. How much longer is left on the terms of the existing lease on the property?

This is an important question to ask to see if you will need to renegotiate the lease, and as a result, bare potential vacancy losses.

 

10. Can I obtain a depreciation schedule or report for this property

Depreciation is an important component of tax deductions for a Smart Property Investment. This information is hard to come by but you will be surprised with how many sellers and agents are willing to provide you with this detail if you simply asked.
You will need this information to use the MID Property Wizard and make a Smart Investment Decision.

 

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