As modern society continuously becomes urbanized with the development of numerous properties, there is an upsurge in investments in the real estate market or real estate industry. When it comes to figuring out what kind of information and real estate questions an investor must be aware of when investing in real estate or the real estate industry, like a lot for sale or a dream home, there are many real estate questions that investors, especially those who are new to real estate investments, ask in order to be more informed about real estate transaction.
In accordance with this, this blog aims to cover several useful real estate questions for a serious buyer about real estate investment that is worth knowing. The content will be divided into two parts: questions relevant to property buyers and questions relevant to property sellers.
Useful Questions for Property Buyers
How to get started on buying a property?
When it comes to buying a new property or getting into the home buying process, it is best for home buyers to seek the guidance of a real estate professional such as a real estate agent, broker, full-service agent, or experienced realtor who has a real estate license. The real estate agent or broker will be the one to guide home buyers on the necessary procedures, screening processes, and information on the local economy in relation to buying a new property. Learn also about the down payment and if real estate prices are negotiable.
Is a property inspection necessary before buying a new property?
Property or home inspection helps identify the current status and quality of the property or lot for sale in question for the home buyers, such as its cosmetic and structural features among other things. The home inspector that will conduct home inspections or a home inspection of the property the home buyers are interested in purchasing will be able to determine the value of the property. Hence, having home inspections conducted before purchasing new property is significant.
Are there other available properties to buy besides the property you are considering?
Ask the real estate agent or professional that home buyers, like you, who are seeking guidance about what properties are on their “listings,” which is just a technical term for the list of properties that are available for sale with their respective real estate prices in the real estate market in the home buying process. You may contact a listing agent to inquire about what properties are available for sale. Make sure to ask what form of communication you and the listing agent will always use as well.
What are mortgages?
A mortgage is an agreement between the investor and a bank in which the investor is lent money in order to purchase a new property or real estate in the event that the property buyer cannot pay the home’s purchase price immediately. In exchange, however, the bank will be able to take the title or ownership of the investor or home buyer’s property, with the condition that if the debt of the investor is not paid, the bank will get ownership of the property of the investor. It is best to ask the real estate professional that you will coordinate with about how a mortgage will work with the new property you are interested in buying.
What is the price range of properties that you can afford?
Knowing the price range you can afford when it comes to selecting new properties to buy will help your transactions become more convenient. You can ask the real estate agents or professionals you are coordinating with to give you “free market reports” or “comparative market analyses” to give you price ranges of properties or lot for sale located in the location that you are interested in.
What is earnest money?
“Earnest money” is a technical term used by real estate agents regarding purchasing real estate property wherein the earnest money is a payment that is supposed to show the seller of the property that your offer to buy the seller’s property is legitimate through the payment of the earnest money. The price of earnest money is usually 1-2% of the property’s selling price.
How much should be paid to the real estate agent you are coordinating with to buy a property?
Investors who purchase real estate property supposedly pay “little to no fees” to the real estate agents or real estate agents they coordinate with when buying property in the buyer’s market. This is because when the property is being bought, there is a real estate agent that represents the buyer and another real estate agent that represents the seller. Real estate agents who represent buyers or the buyer’s agent are typically paid or compensated for by a respective listing broker. The listing broker is the one who represents the seller when a property is purchased.
Useful Questions for Property Sellers
How should the property be prepared for selling?
If you are planning to sell your property in the seller’s market, it is best to seek the guidance of a real estate agent or real estate agents to coordinate with so that your transactions for selling your property will follow all the necessary procedures. Furthermore, you will have to conduct all the major repairs and renovations so that the value of the lot for sale or the property that you are selling will increase. The electrical, HVAC, and plumbing system of your property should have their quality checked as well in order to find out if they require repairs.
How is the selling price of the property determined?
Among other factors, the condition, construction, and location of the property impact the selling price or home’s sale price of a property owned by home sellers. The current supply and demand of the real estate market also need to be accounted for. Hence, you may ask the real estate agents or real estate agents that you are coordinating with for a professional opinion, such as issuing you with a comparative market analysis.
How long will it take to sell a property?
Selling a property in the selling process takes around 55-70 days to sell on average, although several factors affect how long it will take for your property to be sold, such as the financing of the buyer interested in your property or lot for sale, what time of the year you are selling your property, the condition of the property you are selling, competitive prices of properties similar to yours, and the like.
How much of the sale price will you earn?
Generally speaking, the seller of the property will earn around 90-92% of the property sale price, in which the rest of the percentage will go to required payments such as taxes and realtor commissions. You should ask the real estate professional that you are coordinating with to get an estimation of how much you will earn from selling your property.
Why are the fair market value and the assessed value of a property for sale different from each other?
The fair market value and the assessed value of a property or lot for sale are different from each other because their respective purposes are different from each other. The fair market value of the property you are selling is the price that a seller and a buyer have agreed upon. The assessed value of the property, on the other hand, is an assigned value by a tax assessor based on the tax table in order to determine the property taxes respective to the property.
Read more: 6 Questions to Ask Yourself Before Buying A Condo of Your Own
