Questions to ask a Real estate agent when buying?

[BayView]

Interesting term, time wasters. I'd never heard it before returning to Australia - as it applied to potential buyers.

What's the difference between someone being a time waster and someone doing due diligence?

The statement was "time wasters and contracts that fall through."

A timewaster can take a number of forms, but is generally someone who is trying to buy who hasn't worked out what level of finance they can use, or is someone who is simply looking around.

A neighbor who is having a sticky-beak inside your house is a timewaster, and I'd venture to say these are the main culprits.

This is different to someone doing some DD.

When I am doing some DD, I let the agents know - so they know how to qualify me and they know I'm not wasting their time by making them think I'm a buyer when I'm not at that point in time.

Most experienced agent can pick the differences though. My field of expertise used to be in golf. I could pick a "tyre-kicking" (time waster) shopper in about 30 seconds, and spent about as many seconds blowing them off.

From my experience, if you say to the agent "look, I'm doing research on the area for an IP" they are usually very helpful because they know they may get a sale.

Of course, you have to ask the right questions too. If you ask "are the rent returns good?" you can probably guess what the answer will be.

 

[Xenia]

Interesting term, time wasters. I'd never heard it before returning to Australia - as it applied to potential buyers.

What's the difference between someone being a time waster and someone doing due diligence?

well.... one is a time waster and the other is a potential buyer doing due diligence. There is a clear difference.

time wasters are also called "tyre kickers" in our industry.

For those of us in sales any kind of sales whether it is properties, property management services or seminars we love a yes, like a no a clear no is great to get as that means closure.

Most of us can't stand maybe's. Because that means work later to follow them up. I usually push for a yes or a no.

 

[jaycee]

I didn't mean confused as in you don't know what to say/do confused at how upfront someone is and that they're not asking the general "How long has it been on the market?" or "Why are they selling?".

Don't get me wrong, as an agent myself it's always best when people are clear as it allows me to know exactly what they mean, and a course of action

Plus i was more so talking about dodgy agents, rather than the better ones (whom are usually the exception) that will help out each step of the way

So why did you susggest it's a good idea to confuse the agent like you did in your first post that Xenia responded to ?

 

[jaycee]

well.... one is a time waster and the other is a potential buyer doing due diligence. There is a clear difference.

time wasters are also called "tyre kickers" in our industry.

For those of us in sales any kind of sales whether it is properties, property management services or seminars we love a yes, like a no a clear no is great to get as that means closure.

Most of us can't stand maybe's. Because that means work later to follow them up. I usually push for a yes or a no.

And how well you differentiate between the two plays a role too I think

 

[Lil Skater]

Or they can't afford the repayments, the backyard I too small for their kids or pets, they're old and no longer need or want a 4 bedroom house...
There's many reasons to sell. It's not 100% about the house or community.

Plus, it shouldn't matter why someone is choosing to sell, as if it i the house or community you should discover these problems whilst conducting research and DD

 

[jaycee]

Agreed, there's probaabl;y 100 reasons you could list off the top off your head as to why someone is selling but not leaving the city, in addition to somethign being wrong with the place

Howeever, lil skater, I don't think why the owner is selling is compeltely irrelevant a question nor one that a buyer shouldn't ask, I believe there's been times wher understanding this has helped buyers........

 

[Lil Skater]

I think if they don't want to do research then yes, it does help.

However, I fail to see how one persons reason for selling would affect a decision, unless of course, someone has passed in the property - although this should be immediately disclosed.

 

[jaycee]

The statement was "time wasters and contracts that fall through."

A timewaster can take a number of forms, but is generally someone who is trying to buy who hasn't worked out what level of finance they can use, or is someone who is simply looking around.

A neighbor who is having a sticky-beak inside your house is a timewaster, and I'd venture to say these are the main culprits.

This is different to someone doing some DD.

When I am doing some DD, I let the agents know - so they know how to qualify me and they know I'm not wasting their time by making them think I'm a buyer when I'm not at that point in time.

Most experienced agent can pick the differences though. My field of expertise used to be in golf. I could pick a "tyre-kicking" (time waster) shopper in about 30 seconds, and spent about as many seconds blowing them off.

From my experience, if you say to the agent "look, I'm doing research on the area for an IP" they are usually very helpful because they know they may get a sale.

Of course, you have to ask the right questions too. If you ask "are the rent returns good?" you can probably guess what the answer will be.

And too many times in my lifetime, sales people pretend that they undersand english better than the rest of us - and tell us too

I've been a qualified buyer, had the money in my pocket, was sold by adverts on the brand, walked into the store, asked about the product , listended to the spiel, asked a question that the salesperson saw as difficult and now I'm a time waster all of sudden, I was great while listening and nodding, but not now. Doesnt matter that what he said was a fkin lie and my questions asked him to expaian it so I can understand it.

Sales people have also ridiculed (in a soft subtle way not to offend too much, but to make others around chuckle at how irrelevant the question is), when the question was serious - I didn't buy, so the sales people called me a time waster - but, if they had done their job instead of trying to force a sale by patronisingly rushing me they would have got a sale.

Sometimes the sales person is too experienced to care about an inexprienced person with too many questions that needs too much help, I guess they are time wasters as well

I think that's part of what Amadio was saying -maybe in Australia we are quicker than others in writing people off as timewasters cause they make us work too hard .........

 

[buzzlightyear]

Reason for selling

Interestingly, recently I had sold a property and as part of my initial conversations with the selling agent, my back story was that I was selling to access funds to purchase a commercial property. Not entirely true however, knowing that some people would have asked that question, so I conditioned my agent on that one.

This was a far better story than saying I was liquidating because of the significant increase in the price over the past 18 months since purchasing, I couldn't see any substantial increase in capital value, as rental returns were now (given price ultimately paid) 3.7% (gross) for a 2 bedroom flat (~3% net).

 

[RumpledElf]

Basically, the very first question that I would ask is the reason is why the seller wants to get rid or sell the house.. If they are not moving out of town, then perhaps there must be something wrong wither with the house, or the community..

The house I currently live in is WAY too small for us ... it would (after we fix the bathroom sink) make a perfect house for a retired couple, or a young couple with 1 or 2 kids just starting out. The location is wonderful, the house is really nice, the community is fantastic ... but the house is just too damn small for an older established couple with 3 kids.

You can tell there's nothing wrong with the location or community since we are moving to a bigger house next door

 

[kathryn d]

If the REA has said the Vendor knocked back an offer of $xxx, and you want to offer it again (or lower), go for it.
There may have been other condtiions, timing etc that played into the Vendor not accepting the offer THEN.

A REA doesn't know what goes on behind closed doors of the Vendor.
Circumstances change..important deadlines may be quickly approaching.
Accepting a lower offer may just be more economical than waiting.

 

[Amadio]

I think that's part of what Amadio was sying -maybe in Australia waere are quicker than others in writing peopel off as timewasters caus ethey make us work too hard .........

Dead right.

It was such a shock to ask basic questions about a property in Australia and found that not only did they not know the answer but they couldn't care less and didn't intend to find out. It is a laziness that is a stark contrast to other countries.

I feel sorry for young buyers who are new to the market. In property buying, it's all very well for an agent to want a yes or no answer, but for youngsters who have never bought before they really need to think about it which puts them in that "maybe" zone.

Perhaps if they had more honest information to work with, then they could make the snap decisions that experienced investors make.

 

[wobbycarly]

I think if they don't want to do research then yes, it does help.

However, I fail to see how one persons reason for selling would affect a decision, unless of course, someone has passed in the property - although this should be immediately disclosed.

The reasons could help frame the terms, rather than effect the price.

 

[jaycee]

Dead right.

It was such a shock to ask basic questions about a property in Australia and found that not only did they not know the answer but they couldn't care less and didn't intend to find out. It is a laziness that is a stark contrast to other countries.

I feel sorry for young buyers who are new to the market. In property buying, it's all very well for an agent to want a yes or no answer, but for youngsters who have never bought before they really need to think about it which puts them in that "maybe" zone.

Perhaps if they had more honest information to work with, then they could make the snap decisions that experienced investors make.

EXACTLY.... but that means they would have to work to find out valid answers to valid questions, oyu know, do their JOB.... much easier if they didn't have to do their job, and the easiest way out of it is ? Making you the seller look like you're the one being unreasonable for asking too much

Bayview, I am sure as a buyer you have seen this

 

[travelbug]

I think if they don't want to do research then yes, it does help.

However, I fail to see how one persons reason for selling would affect a decision, unless of course, someone has passed in the property - although this should be immediately disclosed.

Asking why a person is selling can give you information on whether you can get early access, delayed settlement, quick settlement, price reduction.
Many things. I think it's worth asking. Nothing to do with not wanting to do research.

 

[skater]

I always ask why they are selling. I don't expect to be told the truth, however have found that sometimes it is amazing how much information some agents are willing to tell you. Of course, that does not mean that I take their word on everything I'm told either.

 

[Lil Skater]

Travlebug, I never actually thought about that.

I automatically switched into thinking about why they were selling affecting the price of the property - Eg. selling because the property is losing foundations or the community is dodgy.

So I guess when you put it into that perspective (Eg. Settlement time frames etc.) Then it is a much more worthwhile then I had originally imagined.

 

[Giddyup]

well.... one is a time waster and the other is a potential buyer doing due diligence. There is a clear difference.

time wasters are also called "tyre kickers" in our industry.

For those of us in sales any kind of sales whether it is properties, property management services or seminars we love a yes, like a no a clear no is great to get as that means closure.

It works both ways... As a buyer I have had much time wasted by lying, underquoting, games playing REA's.

I have absolutely no problem in wasting an agents time. What goes around, comes around. Its a bit much to expect a buyer to look after the REAs precious time, whilst the agent really couldn't care less about the buyer.

 

[Xenia]

I have absolutely no problem in wasting an agents time. What goes around, comes around. Its a bit much to expect a buyer to look after the REAs precious time, whilst the agent really couldn't care less about the buyer.

Yea YOU go show them who's boss.

 

[andrew_de_a]

It works both ways... As a buyer I have had much time wasted by lying, underquoting, games playing REA's.

I have absolutely no problem in wasting an agents time. What goes around, comes around. Its a bit much to expect a buyer to look after the REAs precious time, whilst the agent really couldn't care less about the buyer.

You'll soon find no agent will want to deal with you. Good luck!