Here are ten important questions you should ask your Sales Associate when you are considering placing an offer on property, and why you should ask them.

Property Specific

1. HOW LONG HAS THE PROPERTY BEEN ON THE MARKET? Why: The length of time a property has been on the market may indicate the seller's willingness to negotiate.

2. HAVE THERE BEEN ANY PRICE REDUCTIONS DURING THE LISTING PERIOD? Why: The amount of any price reduction, as it relates to the overall purchase price, may indicate the seller's desire to attract an offer.

3. HAVE THERE BEEN ANY OTHER OFFERS ON THE PROPERTY? Why: Though the agent is under no obligation to give details of the size of previous offers, they may indicate if offers were taken.

4. WHAT IS THE MOTIVATION OF THE SELLER? Why: Motivation is a key element in any negotiation. As an example, if the seller has already purchased a new property, your ability to close quickly may be an attractive element of the negotiation.

5. WHAT PERSONAL ITEMS ARE INCLUDED IN THE SALE Why: Anything the seller is willing to leave behind that you won't need to buy when you move in has real value. Consider those items in your offer.

Neighbourhood Specific

6. WHAT IS THE PRICE RANGE OF SOLD PROPERTIES IN THE AREA? Why: This information is important since it will indicate the top and bottom of that specific market.

7. WHAT IS THE AVERAGE TIME ON MARKET FOR PROPERTIES IN THIS AREA? Why: Short market times may indicate a seller's market. If this is the case you may face competition from other buyers.

8. WHAT IS THE LIST TO SALE PRICE RATIO IN THIS AREA? Why: This information will indicate seller's past willingness to negotiate and by how much.

9. WHAT IS THE AVERAGE SALES PRICE PER RECENT SOLDS? Why: This approach is to establish values of recent properties sold.

10. WHAT OTHER KNOWN FACTORS ABOUT THE PROPERTY OR NEIGHBOURHOOD COULD AFFECT VALUE? Why: Review the contract carefully with your solicitor/conveyancer.

Final Recommendation

If you will be financing the property, get preapproved for a mortgage prior to making your offer. This will show the seller your commitment and ability to perform. Preapproval can be extremely important in the sellers' market.

* Depending on current privacy laws and instructions from the vendor, your Sales Associate may not be able to assist you with all of these specific questions.

« Back to Buyers Resources