Transcripts:
As a property investor you need to become skilled at heavily researching the property you are looking to buy.   Part of that research should be the questions you ask the agent. Just remember that the agent, unless you are dealing with the buyers agent, will be working for the seller but that agent still has an obligation to answer any questions you ask honestly.   I certainly like to ask why the current owners are selling. Understand that sometimes the agent may think you’re being a bit nosy and asking a personal question, but if you explain to the agent that the reason you want to know the answer to that question is that you are genuinely interested in the property and you are likely to structure any offer you may choose to make so that it’s a benefit to the seller. As an example ….. the seller may want to rent back while they look for a property to move to. They may be looking for a faster settlement which means that the price they receive is not the most important consideration. Sometimes it’s not what you ask it’s how you ask the question. I also like to ask how the owners arrived at the asking price. This is important information because it will tell you a lot about how the agent feels about the asking price and what similar properties sold in the area recently that are comparisons. This is all important research for you and will help you establish value. How long has the property been on the market? Have there been any price adjustments since the property was first listed? Have the open homes been well attended? Once again these are all legitimate questions you can ask to help you gather information about the property, what its worth and how much competition you will have if you decide to proceed to make an offer. It’s also reasonable for you to ask if they have been any previous building and pest inspection reports generated on the property. It’s obvious why you’d ask that question and it can also tell you a lot about the condition of the property because you may just be able to obtain a copy of any previous report. You may still want to have your own report done, but it’s certainly a good insight as you go through the selection and elimination process. You will never know the answers to the questions you never ask.