25 Critical Questions To Ask Real Estate Agents When Buying

This post is about discovering the critical questions to ask real estate agents when buying property. Learn how to gather insights about the area, the vendor, and the property. Make informed decisions, navigate successful negotiations and ultimately have a successful purchase.

Ensuring you ask the right questions when dealing with real estate agents can significantly impact your decision-making process. Here’s a guide that offers situational inquiries and property-specific questions to ask your real estate agent when buying a property

Begin with the end in mind....

Determine your investment objectives

Whether it’s long-term capital growth, generating rental income, or a mix of both.

Set Specific Criteria

Based on your upfront research and financial analysis, you will be able to outline your criteria. Location preferences, budget constraints and top spend for the purchase will be important to know. Also know your expected return on your investment.

Research and Due Diligence

Conduct thorough research on potential investment properties that meet your criteria.

Evaluate the Property's Condition

As well as the potential for renovations or improvements, and its compatibility with your longer term investment goals.

Make and Stick to Your Investment Plan

Avoid deviating from your predefined investment criteria and goals. Emotions can often lead to impulsive decisions, so stay disciplined.

Consult with Professionals

Seek advice from real estate agents, financial advisors, property managers, and legal experts. These professionals will allow you to to gain insights and validate your investment decisions. Consider getting a second opinion or expert advice before making major investment decisions. If you prefer guidance while you’re on the journey, consider a Property Mentor and Coach. Make sure they have the property experience, just like anyone you invite into your professional circle.

Educate Yourself Continuously

Stay updated on market trends, regulations, and economic factors affecting the real estate market. Avoid taking advice from gossip in the news or social media. Have reliable sources that are in the Property Investing game, They can give you a rounded view and approach to property investing through their own experiences. Attend seminars, read books, and follow reputable sources to enhance your knowledge and decision-making abilities.

Exercise Patience and Discipline

Most of all, realize that successful property investment is a long-term endeavour. Avoid making impulsive decisions driven by short-term fluctuations or emotions.

Do the above pre purchase “work” and you will be well on our way to purchasing a successful property. The questions to ask your real estate agent when buying will confirm what you might already know but want to double check. They may also highlight missing pieces of information, or alert you to challenges with the property that you may not have been aware of at all.

These questions set you up with an arm full of relevant information to go into negotiations with the vendor. They can also enable you to put your best foot forward with conditions for the Contract Of Sale.

Questions To Ask Real Estate Agents

#1. What are the current market condition in the area where I'm looking to buy?

Getting some inside knowledge from an agent about where they think the market is at in terms of the market cycle. Ask them about buyer demand in an area and growth potential. This will allow you to see if the area fits within your goals for not only your purchasing decision now. You can also future plan the property’s growth/area in question for longer term success of your property.

The question also alerts me to is the Real Estate agent is a “property person” or a “sales person”. There will be a difference.

RealEstate.com.au has some great insights into the demographics of an area that you can match up from your agent and what you see in your ground research.

#2. Are there any upcoming developments or plans in the area that could affect property value?

These key questions to ask the real estate agent when buying will alert you to how much the agent really knows whats going on in the area. Most agents should be in the know about any infrastructure changes within the area. Things like new or upgraded roads, train lines, shopping centres, new high-rise or house and land package developments. Any local or state government changes?

#3. What is the neighbourhood like in terms of safety, schools, amenities, and community atmosphere?

The above critical questions to ask your real estate agent when buying are important for you to know if you are going to live or invest in an area. They also “test” the agents knowledge of the area again. You want an agent who is an area expert. One that has sold houses in the area to give you the best possible insights. At least know if they aren’t an area expert.

#4. Why Are The Vendors Selling?

It is important for buyers to try to find out about the vendor’s situation and what was motivating them to sell.

Finding out why a vendor is selling could provide useful ammunition for a buyer. Particularly at offer time and putting forward attractive conditions that will be enticing the vendor by matching their needs.

If the sale involves the “five Ds” — distance, death, divorce, deadlines or debts — these reasons for selling could give a buyer the upper hand.

Distance involves a vendor selling to move to another city or even overseas, such as for a work relocation.

Death (Deceased Estate) normally causes a motivated sale, people want to get it sold. If this is the motivation for the sell, my other associated question would be how many people are involved in the sale (benefactors). This would alert you to how many people are involved in the negotiation. The more people involved, the less likely they will be to get a quick decision on anything.

Divorce is another reason to sell as assets need to be separated and profits shared.

Deadlines, for example when the vendor has already bought their next home and needs to sell the existing one to avoid an overlap, could also work in a buyer’s favour.

Debts are another reason sellers might be looking for a quick sale at a discounted price. Mortgage Stress is real, and often when a seller is in this situation, it wouldn’t have happened over night.

#5. Has the property been a rental property or have they been living in it?

If the vendor have lived in the property, they have an emotional connection to it and it may be harder to get a good price. But if it is an investment, you have a better chance of getting a better deal.

#6. Has the Vendor bought elsewhere? If so, when is their settlement?

These really are critical questions to ask your real estate agent when buying. The owners may have a contract that is conditional on their house selling, before they can purchase elsewhere. There may be a time limit on this condition. The owner may need a contract locked in and signed, possibly within 30 days. If this is the case, they are likely to want a quick sale.

#7. Has the Vendor a specific price they want to achieve or are they negotiable?

This question may give you a clue as to whether the owner will hold out for the highest price. The price may have been unrealistically set. They may accept something lower for a quick and easy exit.

#8. Has the Vendor got a settlement date in mind?

Knowing if the seller wants a six-month or 30-day settlement could be a point of negotiation. This will depend on how attached they are to the settlement date. If the seller is seeking a short settlement period, then a lower-priced offer with a fast settlement may motivate them to accept. When the vendor is seeking a longer settlement period, then the price of your offer may not be the number one motivating factor, it could be a matter of convenience..

#9. How long has the property been on the market?

If a property has been on the market for a while – like over 60 days, then ask the agent why they think it hadn’t sold.

The Vendor may have set an unrealistic price.

Its possible there may be buyers objections (an issue with the property that make it more challenging to sell – like power lines, close to a major road). There could be some complicated requirements in relation to the block – like an easement or covenant, or the building structure.

#10. Has there been any price reductions since being on the market?

This will depend on how long the property has been on the market. I wouldn’t expect there to be any price adjustments in the first week or 2. However, by the third week on the market, the agent and the vendor should have received good feedback about the price of the property. This would be about the time you would look at a price adjustment. The time frame and the amount of any adjustments will tell you a lot about the vendor and how negitable they are on price and if they are realistic about a sale.

#11. Do you agree with the price set by the vendor?

Ask this question and watch what happens with the agent. If they agree this property is priced fairly, they will respond right away. There could be hesitation, shuffling, eye aversion, or any signs of discomfort by the agent. This will be a dead giveaway that they don’t agree with the price on the property. Most likely the Vendor has set the price without taking on the feedback of the agent. Right or wrong, if the property is overpriced, then it will still be here later.

#12. Can you provide a comparative market analysis for similar properties in the neighbourhood?

These fundamental questions to ask your real estate agent when buying could very well set up some of the terms for the negotiation on price. The agent should be able to support the pricing of the property your viewing with other comparable properties in the area. You will want them to be able to go through these with you. Discuss the sameness and the differences of the properties and any pricing disparities to help understand why this property had been priced accordingly. If its an auction, then you’re looking at what the property would likely go for.

#13. Can you provide information about the history of the property, including previous sales and any notable events (possible death/medical or drug related)

When the agent shows you the comparative sales in the area, they should also be able to show you the sales history of the property itself. Notice when it was last sold, how long ago and with this information, you may need to ask some further questions. Ie. If the property was only recently sold in the last few years, this would spark my curiosity as to why it is being sold again. Average turn over of a property is somewhere from 7-10 years and upwards, so if a property has been sold within a short period of time, there is usually an underlying reason.

#14. Can you recommend reputable home inspectors, Conveyancer's, or other professionals to assist with the purchase process?

If you don’t have any professionals on your team as yet for the purchase of a property, your agent would be a good place to start to get recommendations seen as they are in the Property Profession.

#15. Has anyone got a pest and building inspection done as yet?

This question alerts me to any buyer interest so far in the property. If other potential buyers are interested in the property, then they would have likely got a builder’s report done. Ask for a copy of it. This will save you purchasing another one. At the very least, one for a lessor price. If there isn’t a report available, then you know you could potentially be the only interested party atm. Both of these scenarios could prove to be negotiation points.

#16. Have there been any recent renovations or repairs done on the property?

Its important to know what improvements have been made to the property, who did those improvements (trades person or vendor) and how long ago they were done. This will give you an insight into any further maintenance that may need to be done in the future

#17. What is the age and condition of major systems (aircon, plumbing, electrical, pool) in the house?

Ask these essential questions of the real estate agent when buying as this isn’t normally something that’s in your pest and building inspection. If they don’t know, its up to the agent to find out this info from the vendor.

#18. Are there any known issues with pests, mold, or other environmental concerns?

This should be noticed in your pest and building report, these questions can be asked before the report is done or received.

#19. Are there any pending or past assessments on the property, such as for repairs or improvements ?

Check for any works previously done on the property that haven’t been passed through council as yet (change of use, added bathroom or bedroom, veranda/deck etc.) It could be the property was given notice to rectify something on the property like a drainage/sewer or plumbing issue.

#20. What comes with the property and what doesn’t come with the property.

This is one of the most important questions to ask your real estate agent when buying. Its best to check this with the agent rather than assuming items come with. Ie dishwasher or pool equipment. Sometimes furniture can come with a property, fridges, items that fit specifically with the property.

#21. What are the average monthly costs for this property? Water, rates, electricity, gas etc.

Part of your due diligence . Ask if you are new to an area and you aren’t already aware of what these costs could possibly look like.

#22. Is the property in a flood zone or prone to natural disasters? Has this property been flooded or damaged by weather events.

I recommend these days before you sign on the dotted line of a sales contract, to get a quote from an insurance company (or a cpl of quotes) as part of your due diligence. Insurance is expensive, and particularly so if the area is prone to be weather effected or has been in the past. This will highlight any potential problems that the agent or the vendor hasn’t alerted you to.

#23. What is the process for making an offer on the property?

This will flush out any sales gimmicks the agent has going with this property. I tend to want to do the first offer in face to face discussions. I want to see the agents body language and reaction to it, to see how far I’m off the mark on the Vendors reserve.

#24. Are there multiple offers or competing bids?

You may have to put your best foot forward first, or risk not getting in the game to play. If you have a trick up your sleeve (in other words you have attractive conditions), now is the time to pull them out. Put everything on the table as far as you want to push it. If your finance is ready to go, let them know in your offer. Don’t need a pest and building? Let them know in the offer. If you want a short settlement, let them know in the offer.

#25. Can you explain the terms of the purchase contract and any nuances that may apply?

Send your contract of purchase to your legal team before signing. But before it gets that far, you want to sit down with the agent and go through what will be added to the purchase contract before it gets “written up”. Then again after the conditions have been added into the contract. Ask questions of anything in the contract that you’re not familiar with.

These key questions to ask your real estate agent when buying , will allow you to gather vital information to make an informed decision about purchasing a property in Australia. Remember, a real estate agent’s expertise and transparency play a crucial role in ensuring a successful and satisfying property purchase experience.

If you have these questions to ask real estate agents, about the vendor then you should be able to put an offer forward that’s favourable to both yourself and the vendor.

What’s your favourite questions to ask an agent when purchasing a property? Is there any other questions you would add to the list above to be included?

Add your comments below and share your insights.

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This blog contains my opinions and doesn’t reflect the opinions of any organizations I might suggest or be affiliated with. Any information provided on my blogs is accurate and true to the best of my knowledge, but there may be omissions, errors or mistakes. The information presented in this blog is for informational purposes only and shouldn’t be seen as any kind of advice, such as legal, tax, financial, emotional or other types of advice. I don’t know you, and I don’t know your own personal or business circumstances, so please don’t rely on any information in this blog and take it as personal or professional advice for you specifically. Always seek advice from your own professionals.

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