Key Questions to Ask the Real Estate Agent During Property Inspections

September 10, 2024 | Parker Hadley

When you’re attending property inspections in the highly competitive Sydney property market, one of the most crucial steps is engaging with the real estate agent. Real estate agents are a valuable source of information and knowing what to ask them during inspections can give you the insights you need to make an informed decision. Buying a property is a significant financial commitment, and having the right questions prepared can help you avoid future issues and ensure that the property meets your expectations and needs.

The Sydney property market has its own unique characteristics, including price fluctuations, differing neighbourhood profiles, and various building regulations. Understanding these dynamics through a conversation with the agent will give you a competitive edge. Whether you’re a first-time buyer or a seasoned investor, asking the right questions will reveal critical details about the property and the surrounding environment that are not immediately obvious during a quick inspection.

Here are five quick points to keep in mind:

5 Quick Points:

  1. Property History: Always ask about the property’s background—previous sales, ownership changes, and renovations.
  2. Neighbourhood Information: Inquire about the local amenities, crime rates, and community atmosphere.
  3. Structural Integrity: Ask about recent repairs or renovations and if there are any outstanding issues.
  4. Market Demand: Find out how many offers or interests the property has garnered to gauge competition.
  5. Reason for Sale: Understanding why the property is on the market can uncover potential red flags or opportunities.

Now, let’s break down the key questions you should be asking in more detail.

1. How long has the property been on the market?

The length of time a property has been on the market can tell you a lot about its appeal and the seller’s urgency. If a property has been listed for a long time, it may indicate that there’s an issue with the price, condition, or location. On the other hand, if it’s a recent listing and there’s already a lot of interest, you may need to act quickly if you’re keen on the property. Ask the agent about the level of interest the property has generated to get an idea of market demand.

2. What is the seller’s reason for selling?

Understanding the motivation behind the sale can reveal important details about the property’s condition or the urgency of the sale. For example, if the seller is moving interstate or upgrading, there might not be anything wrong with the property. However, if the seller is offloading the property quickly due to financial pressure or unresolved maintenance issues, you’ll want to know this before proceeding with an offer.

3. Has the property had any recent repairs or renovations?

Renovations can boost a property’s value, but you need to know if they were done to cover up larger issues. Ask the agent if there have been any recent repairs or upgrades and whether the proper approvals were obtained. It’s also worth asking for documentation related to these renovations, as this could impact insurance and future resale value.

4. Are there any known issues with the property?

Real estate agents are obligated to disclose known defects, but they won’t always offer this information unless prompted. Ask directly if there are any issues you should be aware of, such as plumbing problems, electrical faults, or structural concerns. If the agent mentions any potential issues, it’s wise to follow up by arranging a thorough building and pest inspection.

5. What is included in the sale?

Not everything you see during an inspection is necessarily part of the sale. Sometimes, fixtures like appliances, light fittings, or outdoor furniture are excluded. Clarify what will remain with the property and what the seller plans to take with them. This is especially important if you’re budgeting for certain items to be included, such as built-in appliances or security systems.

6. How is the property connected to utilities?

This is particularly important if you’re considering an older property. Ask if the wiring, plumbing, and gas systems have been updated and whether they meet current standards. In some Sydney suburbs, especially older areas, you may encounter properties with outdated systems that require expensive upgrades. Knowing this ahead of time will help you budget accordingly.

7. What are the council rates and strata fees (if applicable)?

Understanding the ongoing costs of owning the property is critical to your financial planning. Ask about council rates, water rates, and, if applicable, strata fees. Strata fees can be particularly high in apartment buildings or townhouse complexes, so you’ll want to know exactly what these fees cover and whether there are any upcoming major works that could result in higher levies.

8. Are there any zoning restrictions or upcoming developments in the area?

Zoning restrictions can affect your ability to renovate or develop the property in the future. Additionally, planned infrastructure projects or nearby developments could impact property values, for better or worse. Ask the agent if there are any zoning regulations that might limit what you can do with the property. In some cases, upcoming developments, such as new transport links, shopping centres, or schools, could enhance the property’s value, while others, like nearby high-density housing, could have the opposite effect.

9. What is the market demand for similar properties in the area?

In Sydney’s competitive market, it’s crucial to understand how the property stacks up against comparable homes in the area. Ask the agent for recent sales data of similar properties and how the asking price compares. This will help you gauge whether the property is priced fairly or if you might have room to negotiate.

10. What are the property’s energy efficiency features?

With rising energy costs and a greater focus on sustainability, energy efficiency is a critical factor for many buyers. Ask the agent about the property’s insulation, solar panels, window glazing, and any other energy-efficient features. Homes with these attributes not only reduce your environmental footprint but also lower ongoing utility costs, making them more attractive from a financial standpoint.

11. Is there a history of pest infestations?

Especially in older properties or those near bushland, pests can be a significant concern. Ask the agent about any history of pest infestations, such as termites or rodents, and whether the property has had any pest control treatments. Even if there are no current issues, a history of pests could mean ongoing vigilance is required.

12. How long has the current owner lived here?

The length of ownership can provide clues about the property’s liveability. If the current owner has only been there for a short time, it might be worth investigating why they are moving. Are there issues with the neighbourhood, or perhaps the property itself, that led to the quick turnover?

13. Can you clarify any discrepancies in the contract?

Before making any offers, ensure that you fully understand the terms of the sale. Ask the agent to clarify anything that seems unclear or questionable in the contract. This could include terms related to settlement periods, deposits, or any special conditions.

14. Are there any easements or covenants on the property?

An easement is a legal right for another party to use part of your land for a specific purpose (such as for utilities or access), and covenants may restrict how you use the property. These legal details can affect your future plans for the property, so ask the agent to provide all relevant information.

5 FAQs about Key Questions to Ask During Inspections

  1. How should I prioritise my questions during inspections? Start with the most critical areas like structural integrity, zoning, and utility connections. Then, delve into details about market demand and neighbourhood factors.
  2. Are real estate agents required to answer all questions honestly? Yes, they must disclose material facts, but they may not volunteer all details. Always ask directly about any concerns.
  3. Can I negotiate based on the answers I receive? Absolutely. If issues are uncovered during your questioning, you can negotiate the price or request repairs before finalising the sale.
  4. What if the agent is unwilling to answer a question? This could be a red flag. If the agent is evasive, it might be best to investigate further or consult a lawyer or property expert.
  5. Is it worth asking about the neighbourhood from the agent’s perspective? Yes, the agent’s knowledge of the local area can provide insights into future developments, community feel, and long-term value prospects.

Conclusion

Asking the right questions during property inspections can help you uncover vital information that impacts your purchasing decision. Sydney’s property market is fast-paced, and the insights you gain from the real estate agent can make all the difference between a good investment and a poor one. Be thorough, stay informed, and use your questions to protect your interests during the inspection process.

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