As many of us are aware, property buying is a very complicated process with a huge amount at stake. It requires vast knowledge to ensure a good bargain.
Many people tend to purchase properties which impersonate their dream property, but regret later when things turn otherwise as problems begin to surface one by one. One effective approach to avoid this is by asking as many questions as possible to the real estate agent, prior to your home purchase.
During a home purchase, it is common for a real estate agent to present the positive side of the abode while the inconvenient facts of the house are rarely mentioned. But the agents are legally bound to give out accurate information given that buyers ask the correct questions.
Hence, to avoid any misfortune, buyers can ask the following questions to their real estate agent before acquiring the property:
1. Why is the owner selling this property?
This question does not guarantee you an accurate answer. But if you’re lucky, you might get some hints. For an example, getting information such as “owner is desperate to sell” or “urgently leaving the country” can actually give you an opportunity to bargain for a lower price.
2. What is included in the sale?
Ensure that you know exactly what will be included in the sales prior to the home purchase. If it is a furnished house, ask the agent if the owner is selling the home furnished or unfurnished, and if all the fittings and fixtures will be included.
3. How long has the property been on the market?
If the property is in the market for over three months, ask the agent why isn’t the property selling, and if there’s any problem with the house which you are not aware of. Overpriced can also be a reason for this. But if the property is in the market for a long time, then you can bargain for a lower price which the owner might agree to.
4. How long has the owner lived there?
Some owners might have stayed in the house for a long period of time. But if the owner has only stayed there for mere months, probe the agent for the reason. There could be many reasons for it such as noisy neighbours, the house is haunted house and so on.
5. Has the property repetitively changed hands?
If the property has been sold many times, then there might be a serious problem with it. In such instances, find out the reason why the previous owners moved out and contact the previous owners if it’s necessary.
6. How was the asking price fixed?
If the house is reasonably priced, the agent will justify the reason behind it. However, some agents might tell you that the owner is overvaluing the house in the event that the house is overpriced. Thus, try to survey and learn the transaction value of the properties in the area and find out if there are other properties for sale in that area as well.
7. What is the possible minimum price the owner is willing to accept?
Sometimes the price fixed by the owner is negotiable and asking the correct questions can indicate such things. Some real estate agents will actually let you know in the event of probing, as their main intention is to sell the house even for a lower price – as they do not get paid if they don’t sell the house. Hence, some wouldn’t mind telling you the truth and sell the house at a lower price.
8. Are there any other offers so far?
You can expect the agent to give you an honest answer to such questions, but the amount which was offered will not be easily revealed. However, you can always try your luck as it will be easier to decide on your offer if you find out about the other offers.
9. When will the sellers move out?
Find out if the sellers have already found a home and are about to move out, or if they have already moved out. In case they have moved out or are about to, the possibilities are there for them to find an urgent buyer. However, if they are still living in the house, it adds to the uncertainty.
10. Can I speak directly to the seller?
In most cases, the agent prefers not to allow you to talk directly with the owner. However, they cannot stop you if you insist. Unlike the agents, the owners are more honest with their answers as they are just common people like the buyers. Most will give an honest and straightforward answer on the reason to move out.
11. Which way does the property face?
Malaysians typically believe in Feng Shui, Vasthu Sastera and so on. Learn which direction the property is facing and make sure it is according to your beliefs. Such things should be considered before the purchase and not after.
12. Has any major renovation been done in the house?
If yes, ensure there’s no illegal extension to the house. Check with the local council prior to home purchase, as it’s not easy to knock half of your home down right after your purchase.
13. Roughly how much are the taxes, insurances and recurring bills?
While water and electricity bill amounts seem to be a small consideration, yet asking them is important as it will be recurring every month and would add up to your burden. Besides that, also get the figures for Property Assessment Tax (cukai pintu), Quit Rent (cukai tanah), home insurance (fire insurance, homeowners insurance and householders insurance), mortgage insurance (MRTA or MLTA), Indah Water utility bill and maintenance fees.
14. How old is the property?
With this information, you can roughly estimate the cost to upkeep the house. Older houses are often more expensive to upkeep.
15. Any of the rooms have been revamped recently?
Usually, people will repaint or redecorate a room to cover damp or cracks. Also, check for leakages.
16. How noisy are the neighbours?
Mostly the agent will not reveal such information. But given there’s a dispute between the owner and the neighbours to the extent of lodging a police report, then the agent will be legally bound to tell the truth.
17. What can you tell us about the neighbourhood?
Ask the agent about the crime rate in the neighbourhood; the type of infrastructures, facilities and amenities available there; how bad is the traffic congestion. However, it is good to do your own research on the neighbourhood as well, besides asking the agent.
18. Are there any facilities, amenities or infrastructure that’s about to close down?
Probe the agent for such information. It might give a negative value to the house given an important facility or amenity nearby is shut down. The locals might know of such news, but you might miss out on it. For example, it might impact the value of a house if a nearby mall shuts down.
19. What are the upcoming developments in the neighbourhood?
If there’s a good development which will help to boost the property price, the agent will have to let you know even before you ask. Probe the agent for nearby upcoming developments which might impact the house in a negative way. Whether there’s an empty land nearby, a high-rise development nearby that can increase the traffic congestion in that area or block your view; or a sewage plant opening that can cause you trouble to sell your house in the future.
20. Is there a cemetery or a sewage plant located nearby?
Check for the negative factors in the neighbourhood. A cemetery nearby the residence can be considered to give bad Feng Shui for an abode, or a bad vibe. And so is a sewage plant. These may pose problems in selling the house in future. However, if these are still acceptable for you, then it can be used as a bargaining chip to further lower the price.
Always ask your agents as many questions as you want and make sure you clear all your doubts before purchasing a house. Write down your questions on a piece of paper during your house visit, as to avoid forgetting certain questions. Happy hunting!
Mangalesri Chandrasekaran, Editor at PropertyGuru, edited this story. To contact her about this or other stories email mangales@propertyguru.com.my
