You’re ready to buy a home. You've found the best real estate agent to have in your corner. Maybe it is your first, or perhaps it has been a few years since you’ve gone through the purchase process. As you refine your search for your dream home, it is easy to fall in love with a house quickly. Naturally, there are a few things that you should be on the lookout for even with a property that seems perfect for you. In this post, we’ll highlight the 5 critical questions to ask the listing agent about a home you want to buy.
1. Assess the Timeline
One of the first topics you’ll want to address with the real estate agent representing the seller is the overall timeline. For example, if it is early in the process it would be good to hear how quickly the owner wants to finalize their home sale. Are they in a hurry, perhaps necessitated by another event (like a new job or relocation)? If their timeline is drastically different from the pace at which you are prepared to move, then it is better to discover that early on to avoid later heartache. Usually the asking price is a good barometer for a seller's haste; a good agent will be able to provide verbal context for the situation that passes the smell test.
On the other hand, anything unrealistic would signal a potential issue. If the home sellers want to move unreasonably fast, they might be trying to hide something; if they are comfortable sitting in the market for a long time, they are probably holding out for a sweetheart offer that is more than the property is worth. And the more time your pending sale is in limbo, the more closing costs could add up in a big way; it's unlikely a seller would wait until conditions change and it becomes a more favorable buyer's market. In this vein, you should inquire about how many days this listing has been active. (You can also look online to find out information about the listing agreement). Your real estate agent will probably already know the answer, but it would be good to hear more context from listing agents to confirm there is no cause for concern.
2. Home Health
The most obvious line of questioning pertains to the condition of the property itself. Sure, there will be inspections and appraisals, but those are not perfect and it is better to give the other party the opportunity to get in front of any disclosures. You will want to know if there have been any major updates to the infrastructure since the home was originally built. You’ll want to know the current functional status of the plumbing, the roof, the HVAC, the foundation, and other things. Don’t be bashful, ask directly if there have been any damages that a buyer would need to address upon move in; corroborate that with CLUE reports about any insurance claims or municipal documents. Just one or two issues could drastically shift your view of the listing price.
Related to the home’s condition are the potential extras that will come with it. Ask about appliances or cabinets so you understand what is included with the house, and what condition these things may be in. Just because the previous owners leave something doesn’t always mean a bonus for the buyer; a heavy, broken refrigerator is more of a Trojan horse than a gift of goodwill. These nuances cannot be captured by a simple comparative market analysis or greater market trends.
3. Who Is Leaving and Why?
The listing agent is a fantastic resource to learn more about the outgoing resident (presumably the homeowner). Quiz them how long the seller lived in the house. Part of this exercise is confirming what your own agent has likely already relayed, the other part is confirming this is a place you could live happily for the long term.
You may also glean some knowledge about the profile of the seller that can benefit your imminent real estate transaction. If they are a family upgrading space, and you are just beginning a family, they may give your offer extra consideration for purely sentimental reasons. No one wants to see their home fall into unsavory hands, even if it makes a nice profit. Inquiring about their reasoning for leaving is sensible, not only to understand the seller but also to see if there is any motivation that might dissuade you from wanting to live there too.
4. Know Thy Neighbor
Even if the house and the seller seem wonderful, the area around your home must be thoroughly vetted in advance of a purchase. Ask the listing real estate agent what the neighbors are like — are there any issues, what is the composition — those types of questions. If no families with young children live nearby, that may indicate a less-than-ideal safety profile or more noise after hours. Test the agent’s knowledge of the closest school and the quality of the district. Every agent will know this; if they play dumb, they may be covering for something.
One particularly interesting tactic is to ask indirect, innocuous questions that reveal a larger truth. For example, you can ask the agent offhand for a nice brunch recommendation nearby (or dog park, or exercise area). If they return multiple recs, then you have learned something (how many clients they've had in the area or general local market knowledge). If they cannot recommend any place beyond what you find from basic online reviews, or no notable company/brand has a presence close by, then you learn something else.
5. Movin’ on Up
Finally, you’ll want to test the real estate agent one last time by asking about something your own real estate agent already knows. How have the home prices in the neighborhood changed in the last few years? Are they going up or going down? And how quickly, compared to the national rates? You’ll want confirmation of the trajectory of the value of your home. Also, benchmarking it against comparable homes in the area is useful to make sure you aren’t overpaying (if the price seems high) or buying a lemon (if the price seems low).
Any listing agent beyond a mere newbie with a real estate license will have this information. And a good buyer's agent will be prepared to corroborate what their counterpart tells you -- a top agent is constantly monitoring the MLS (multiple listing service) to stay abreast of these details. You'll want to do everything in your power to make sure your final sale price becomes dwarfed by the future value of your home.
Conclusion
Preventing yourself from wearing homebuyer's goggles is crucial to make sure you’re making the best decision when buying property. You need comprehensive input on multiple fronts to balance out all the pleasant points real estate agents will try to pitch you. You should ask them specifically about the seller, their timeline expectations, the surrounding neighborhood, the condition of the home, and the trajectory of the home value in the context of the local area. Gaining insight into these aspects will position you properly to decide on an offer, if any, to submit for a house.
Enjoy this post? Curious what questions other home buyers have for real estate agents when they’re in the market?
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