5 Important Questions for to Ask Your Realtor Before Buying a Home

Naturally, there are plenty of questions running through a homebuyer's mind when he/she is ready to buy; after all it' s only the biggest purchase of one's life. Previously, we listed 10 smart questions to ask before buying a home, then broke it down further into two categories; 5 questions to ask yourself and 5 questions to ask your realtor. This week we're answering the second half.

1) Why is the owner selling?

One man's treasure might not be the best for you and yours, so it's important to consider the seller's motivation behind putting their home on the market. Were they looking to upgrade, downgrade or move closer to family? Or is there a lurking issue that they're not disclosing which is making the seller sell. Whether it's much needed renovations, noisy neighbours or a lack of amenities, consider the long term implications of moving into a new space. There may be factors at play that aren't obvious on the surface level, but having your real estate agent explain the sellers reason for putting their home up on the market will help you decide if it's a hit or miss. This can also help with sale price and negotiations, saving you money in the long run.

2) How did the real estate agent decide on the selling price?

The cost of a home reflects the fluctuations in the housing market, which has an effect on the perceived value of a home. The number of bedrooms, bathrooms, proximity to amenities are all examples of factors that indicate in the price of a home, in relation to the neighbourhood it's in. Naturally, some homeowners have an emotional attachment to their home and may be looking at their property through rose coloured glasses. Pay attention to the rational factors that affect selling price, and make sure your real estate agent thoroughly understands the reasoning. It's also important to consider how long the home has been on the market. If it's been months, then that could be an indication that the home is overpriced. In that case, look to our next question.

3) How much have similar homes in the area sold for?

It's important to remember that housing markets are local and prices are relative to the surrounding properties and current market. Changes in the economy will have an effect on prices, and it's important to note that a nice home in an average neighbourhood could go for less than an average home in a nice neighbourhood. That being said, it's important to consider the surrounding neighbourhood as an indication of what your home is worth. Your real estate agent is better suited knowing the value of the area in order to find you a better price for your home. In fact, TheRedPin agents specialize in various GTA neighbourhoods. As mentioned, the emotional factors might have influenced the seller's price point; understanding the value of neighbouring homes allows you to cut to the chase and get a better price.

4) What is the minimum price the seller is willing to accept?

Understanding the asking price range will obviously give you a clear indication of whether you can afford the home or not; however, finding the minimum selling price has the advantage of helping you gauge what your offer should be, as a buyer. Aside from saving you money, this prevents you from putting too low of an offer on a house, and having the seller immediately dismiss you. Understanding the seller's flexibility is especially important when dealing with a more competitive housing market; you don't want to risk offending the seller with a stingy bid.

5) What are the major renovations that need to be done?

It's likely that your perfect home might have a few kinks you'll need to work out before it officially feels like yours. You'll need to carefully consider the cost of future renovations, and factor those costs into purchasing your home. Consider the renovations and whether they are worth the effort to begin with; will these changes add value to your home long term, or are you simply picking up the tab for the current seller? Understanding the renovations that need to be done will give your real estate agent the chance to negotiate the cost of your home, or perhaps guide you in a different direction.

We hope that our questions and answers have pointed you in the right direction on your search for the perfect home!

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