What questions should I ask to a real estate agent?

Any general questions you might have in regards to loans and finance.
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ohlala
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Joined: Mon Jul 15, 2013 5:53 pm

What questions should I ask to a real estate agent?

Post by ohlala »

Hi Experts,

I am looking to buy a place for myself. This will be my very first crib so I want everything to go perfectly.

I work as a sales representative in a local retail store. I earn around $65,000. I live with my parents so I have saved a decent amount. Also, my to-be-husband will be helping me through this. We work in the same place and he earns around $75,000. This house is for us :D

Recently one of my cousins got herself a new apartment. She loved it so much that without doing any research she made a decision to buy it. Now she is paying a large sum of monthly repayments which she can hardly afford. She says that there were too many hidden charges. I do not know what exactly she meant but I do not want to get in trouble after buying my house.

Since I am new to this, can you please suggest on how I can prepare before meeting the agent or when I find my house?

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Otto Dargan
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Re: What questions should I ask to a real estate agent?

Post by Otto Dargan »

Hi ohlala,

It is always good to plan your purchase well beforehand. It is especially important if you are a first home buyer since it is a long term financial investment that you are making.

To help you better understand your research we have an article on Six Questions to Ask a Real Estate Agent which can help you find a good property.

It states as follows:
  • Prior purpose of the seller to sell the property - It is always good to know the reason why the seller is selling the property. Knowing the urgency of the seller might help you to negotiate a better price.
  • Length of time property has been up for sale - Knowing the time frame could be your key point to bring down the price of the property. Sometimes the seller might be comfortable with their property being in the market for long time until they find a buyer agreeing on the given price. However some sellers might be in a rush to sell their property and sometimes the agents might push the seller to settle in lower price if the property has been there for a long time.
  • Original price of the property and the negotiable rate - From your real estate agent you should know the price that was offered previously for the property. This will help you to figure the price seller is looking to settle at. You also should not hesitate to ask for negotiable price.
  • Lowest price seller is willing to accept - If you know the range that the seller is willing to accept then you will save a lot more time to analyze your affordability of the property.
This should help you question your real estate agent effectively and learn more about the property you are viewing.

Cheers,

Otto
Otto Dargan
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P | 1300 889 743
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ohlala
Posts: 47
Joined: Mon Jul 15, 2013 5:53 pm

Re: What questions should I ask to a real estate agent?

Post by ohlala »

Hi Otto,

Thanks for summarizing it all. I will go through the link too.

Other than the things that you’ve mentioned above are there anything else that I should consider?

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Otto Dargan
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Re: What questions should I ask to a real estate agent?

Post by Otto Dargan »

Hi ohlala,

While buying a property the important part is to know your budget - as wise as it may seem to own a house rather than rent, it is not very wise to get a mortgage that you cannot afford.

To get an idea about your borrowing capacity you can try our How Much Can I borrow Calculator. Your borrowing power mainly depends on your income level and how the lenders will assess your finances.

The calculator can be completed in three easy steps:
  1. Input your household details.
  2. Input your income details.
  3. Input your expenses and how much you would like to borrow.
Other than understanding your budget you should also do your research on the following:
  1. Your local market – Understanding your local market and knowing the exact worth of property could be your essential key in securing a property at the right price. You could get a sales report of properties sold on a street-by-street basis from the internet.
  2. Demographics of the area – You should always select the area that suits you and your further development. Thus, it will make it easier if you know how the area is made up i.e. number of senior citizens, younger professionals, families and neighbors or development plans nearby.
Never settle on the first house you think might be the right one for you. If you try to open up with your agent as much as possible it might create a clear picture of what you want.

Cheers,

Otto
Otto Dargan
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P | 1300 889 743
Home Loan Experts

ohlala
Posts: 47
Joined: Mon Jul 15, 2013 5:53 pm

Re: What questions should I ask to a real estate agent?

Post by ohlala »

Hi Otto,

Thank you so very much. All this has been a great deal of information for me to go ahead now.

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Otto Dargan
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Re: What questions should I ask to a real estate agent?

Post by Otto Dargan »

Hi ohlala,

Should you require any assistance please feel free to call us on 1300 889 743 or you may even enquire online

Cheers,

Otto
Otto Dargan
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P | 1300 889 743
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andylau
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Joined: Thu Jun 20, 2013 7:13 pm

Re: What questions should I ask to a real estate agent?

Post by andylau »

Hi Otto and ohlala,

I was reading this thread and found it very interesting.

I am a teacher in a public school and earn around $60,000 annually. I live in Melbourne with my parents. I am looking to buy an apartment for myself near to my school. I have saved a small amount of $35,000. I have not found any property as such or haven’t really decided my budget for this.

Can you tell if I can apply for my FHOG?

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Otto Dargan
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Re: What questions should I ask to a real estate agent?

Post by Otto Dargan »

Hi andylau,

Yes, first home buyers are entitled to First Home Owners Grant (FHOG) which is funded by Federal Government to help the first home buyers enter the property market. This benefit varies from state to state.

First home owners grant is available if you meet the following criteria:
  • The applicant has to be a person and not a company or trust and should be at least 18 years of age
  • Applicant or the partner applying has to be a Permanent Resident or Australian citizen
  • Applicant or the partner applying should not own a property in any State of Australia before 1 July 2000
  • The eligibility of grant is given by First Home Owner Grant Act 2000 in every State
  • The property value should not exceed the cap amount which varies in between every state
  • At least one applicant should occupy the home as a place of residence until six months starting within 12 months of settlement or construction of home.
Cheers,

Otto
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

andylau
Posts: 35
Joined: Thu Jun 20, 2013 7:13 pm

Re: What questions should I ask to a real estate agent?

Post by andylau »

Thank you for the information Otto.

I am in the process of finding my home. Once I do that I’ll get back to you again.

ohlala
Posts: 47
Joined: Mon Jul 15, 2013 5:53 pm

Re: What questions should I ask to a real estate agent?

Post by ohlala »

Thank you andylau and Otto,

This is a valuable piece of information I was unaware of.

Just a quick question, how do I apply for first home owners grant?

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Otto Dargan
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Re: What questions should I ask to a real estate agent?

Post by Otto Dargan »

Hi there ohlala,

You can apply for this grant when you are buying your property. Mostly lenders act as an approved agent and will process the payment of your grant.

You have to be very cautious when lodging this application. If you make any mistakes while filling out the application or delay while sending it or do not provide required documents it might delay your settlement process.

If needed we can help you through this, you can call us on 1300 889 743 or enquire online for the same.

Cheers,

Otto
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

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