Questions to ask in your search for an investment
Are you looking to take advantage of the current market conditions and expand your investment portfolio? If so, here are four essential questions to ask real estate agents at open inspections.
What is the value of the home?
You might know the price of the property - or at least a ballpark figure - but finding out the value can help you determine if it’s fairly priced. Ask the agent the value of the property.
If a formal valuation hasn’t been performed and you’re serious about buying the property, it might be a good idea to seek one from a professional.
Have you had any offers on the home?
Asking the agent if there have been any offers on the property helps you gauge the level of demand in the property and wider market.
The agent may even tell you if offers have been declined by the owner, which could provide you with useful information when you craft your offer for submission.
How much rent are the current owners charging?
Many investment properties will have existing tenants paying rent. If you intend to purchase the property as an investment, it is important to know how much rent the property currently attracts.
It’s also important to note how much rent is being charged for comparable properties in the area. Also ask the property manager how long the tenants have been living at the address.
If you are thinking of making alterations or additions to the property, it is important to know the conditions of the current tenants’ tenancy agreement.