Navigating the property market can be a challenge, as there are many hurdles you must overcome. Whether you are buying or selling, it is likely to involve one of the biggest assets you will own, so you want to do it right.
There is no doubt that you will want to avoid obstacles that could be timely and add additional costs to your property journey. The best way to prepare yourself is to partner with a real estate agent, so they can be your best guide.
A real estate agent will help you gauge the market so you know you are receiving or paying a fair price for your property. During this process, they will also make sure you are aware of all the critical facts so you can make fully informed decisions.
As a buyer or seller, you need to be proactive in the property market. So to make sure you have the right person at your side, here are a few questions for a real estate agent.
The question to ask before you buy
If you are planning on buying, there are a lot of things you want to consider before you part with a large amount of money. You will want to ask questions to find out about the seller’s motivations, the location, the property, and much more. The answers to these questions can help shape your budget so you can work out how much money you will need.
Tell me about the owners, and why are they selling?
Understanding the motivations of the vendors to sell could help you dramatically during the negotiation process. For example, have they bought a new house already? If that is the case, they are likely in the hurry to sell and could accept a lower offer. There are many reasons someone could be motivated to sell and understanding those could help you as a buyer.
How does the location work for you?
Real estate agents are not only local market experts, but if they live locally they will be able to fill you in on everything the suburb and its surrounding area has to offer. This can give you a real insight into what it would be like living in this community.
However, being a local market expert means they will also be able to give you a clear idea on the demographics of the area, pricing, population growth and development of the area. They can also help you compare streets and other factors which would give you a fair assessment on what is fair to pay in a specific location.
How are my future neighbours?
We have all seen ‘Neighbours at War’ on TV, and that is definitely a circumstance you would like to avoid. But it illustrates how friendly neighbours can make a huge difference to your quality of life, as well as the general ambiance of the area you are wanting to call home.
You may also be in search of neighbours who fit your lifestyle. If you have kids, neighbours with kids a similar age could be a bonus. To get to know your new neighbourhood, a few trips to visit the property at different times of the day could help. But your agent can likely give you some additional useful information.
Has anything been renovated recently?
When you know what has been renovated, this will help gauge a better standing to work out the correct price of the property. Recent renovations will be a factor in the current market price when you compare it to how much the property last sold for.
To make sure you are not buying into a ‘cowboy builder’ situation, you will want to ensure the work was council approved and performs to a high standard. It is also worth asking about any valid warranties.
What have similar properties sold for recently?
This is an important question that lets you compare similar properties in the same location to determine what price you might expect to pay. It also gives you an insight into whether the seller’s asking price is realistic and how active the market is to determine how fast you may have to move. It could be helpful to ask about the number of properties that have sold in recent times, pricing trends and any peak periods of the year for sales and prices.
The questions to ask before you sell
Sellers need to determine how a real estate agent will handle your sale, how your property should be sold and the cost involved.
Is there anything I should be concerned about with my property?
A real estate agent will come in and look at your property as though they are a buyer, searching for those things that will stand out. And during that inspection they will be able to point out any concerns they may notice about your property.
If the agent raises legitimate issues about your property, they are likely being honest with you as these will be issues potential buyers will notice when they compare you home to other similar properties on the market. Understanding these drawbacks will give you a chance to rectify them where possible and obtain a more realistic view of your house’s market value.
What costs are involved in selling?
At this point it is beneficial to get an agent to explain the costs involved in selling a property. You want to clear up the costs involved at the start so you are not faced with any surprises or “hidden” costs you were not aware of. One of these extra costs could be if you need maintenance carried out on the property, it could be the legal costs, agent commission, marketing costs, property-staging costs and moving fees.
It is important you consider commission. You have selected this agent to be part of your property journey because of their industry and contracts expertise to achieve the best possible price for your sale. Make sure you are aware of the agent’s selling costs from start to finish.
How should I sell my property?
You should explore the different sale methods with your real estate agent to get their take on whether an auction, tender or another option would work best. Each option will have advantages and possible drawbacks depending on the market conditions, locations and other factors. An agent will be able to give you useful information as well as insight into the area and how each option has worked. For example, they may suggest an auction because of the high success rate with auctions in the area.
What is happening in this location?
The changing nature of a suburb could be a draw card for positive marketing activity, and it’s not always as easy as seeing lots of sold signs outside homes. A real estate agent should have a heightened degree of awareness of what is happening in a community that is spurring growth, such as more subtle neighbourhood activity, more small businesses opening and any other relevant signs of growth.
What’s the best marketing approach?
Your real estate agent should come prepared with a comprehensive marketing plan for your property, which should include social media, signboards, local marketing, and newspaper advertising to push your property. Other aspects could include professional photography, copywriting, cost of listing and boosting your property on Trade Me, realestate.co.nz or OneRoof, styling your home, or even creating a personalised website for your property.
The right approach will include a number of these elements to ensure your home gets maximum exposure to find the next owners and get you the best price possible.
An educated approach is the best approach
It doesn’t matter whether you are buying or selling a home or an investment property, asking your real estate agent the right questions will give you the help you need to determine the agent’s approach and knowledge. You will also benefit from extra information about the property and the local market.
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