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Essential Questions to Ask when Buying a Property

10 Questions You Need to Ask Before Buying a Property! 

Buying a home is one of the biggest financial decisions you’ll make, and having the right information is key. Before signing any contracts, make sure you give consideration to these 10 important questions, some of these questions may best be directed to the real estate agent selling the property.  This guide is not legal advice, however it is aimed at giving you some useful top tips to complete as part of your due diligence before entering into an exchange of contracts. 

1. Why is the property being sold? 

Understanding the seller’s motivation can reveal valuable information. Are they in a rush to sell? Is there an issue with the property or the area? This insight could help with negotiation and inform your final decision. 

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

A home that’s been listed for a long time might signal overpricing or hidden issues. Conversely, if it’s fresh on the market, you may need to act fast. Either way, the timeline may reveal factors relevant to pricing. 

3. What is the property’s price history? 

Research previous sale prices and any recent price changes. This gives you a clearer picture of market trends and the property’s value over time. 

4. Are there any known issues with the property? 

You’ve probably heard of the saying ‘caveat emptor’ or ‘buyer beware’.  When buying a property, it is essential that you are fully informed of the condition of the property.  Obtaining a building and pest report is one way you can understand more about the property.  If buying a unit in a strata scheme, it is important to obtain a strata inspection report.  Your property lawyer or licensed conveyancer will guide you through the planning certificate which identifies lots of key information about a property, including matters such as the zoning and permitted use of a property, whether it is in a bushfire zone or a flood planning zone, if the property is heritage listed and many other important matters which may affect your decision whether to purchase the property or not. 

5. What’s included in the sale? 

Does the sale include appliances, fixtures, or furnishings? Clarifying this avoids disputes later. You should also ensure that any appliances included in the sale, such as an oven or dishwasher are in working order at exchange.  

6. Have there been any recent renovations or repairs? 

Understanding recent work on the property helps you gauge its condition and identify potential cover-ups or issues which may arise.  If it looks like renovation works have been carried out at the property, you should make enquiries as to whether there is a final occupation certificate and a Home Building compensation certificate. You can carry out free searches via the SIRA website to see if the property has a HBC certificate.   

7. What’s the neighbourhood like? 

Ask about local schools, transport, shops, future developments, and crime rates. A lot of information can be found by conducting a review of Council’s records or Council’s file for the property.  Similarly, a search of the DA Tracker may indicate proposed developments nearby that would affect the property you are wishing to purchase.  

8. What is the current market demand in this area? 

Are properties moving quickly? Is it a buyer’s or seller’s market? This can guide your negotiation, strategy and timing. 

9. Are there any legal issues or planning restrictions? 

As mentioned in number 4 above, it is important you obtain an understanding of the planning certificate.  Your property lawyer or conveyancer will also explain to you any easements, encumbrances, covenants or restrictions registered on the title of the property. It is important that you understand what you can and can’t do with the property. 

10. What other steps should I take before making an offer? 

If you need finance to fund the purchase, you should be engaging in discussions with you chosen bank or broker to ensure that any approvals are obtained promptly and there is sufficient time to sign loan documents in the lead up to settlement.  

Bonus Tip: Involve a Property Lawyer Early 

You find the property of your dreams via a real estate agent, but once your offer is accepted, you need to rely on your property lawyer or conveyancer to protect your legal interests. If you engage a property lawyer early, you will be in a better position to have the contract reviewed and be ready for exchange, it can sometimes be the difference of buying the property or not if there is a competition between two or more parties to buy the property.   

Don’t leave your property purchase to chance.

Contact ClickLaw today to connect with an experienced property lawyer and get the peace of mind you deserve.