Six questions to ask when you're buying a house

Saturday, 7 September 2024

House hunting is never easy, but if you go in armed with the right questions to ask estate agents, you'll be starting off strong.

I’ve bought seven houses in my life - and while this doesn’t make me a property magnate by any stretch (especially considering I only own half of one right now) - I do have some words of advice for those who have never bought before, especially when it comes to approaching open homes or viewings with a real estate agent.

Apart from my own house-buying, my mother, who has a lifelong interest in property, used to drag us to open homes during my childhood. If the experience has taught me anything, it’s to not be shy to ask questions.

It’s worth remembering during the process that, while real estate agents are obliged to “act in good faith and deal fairly with all parties engaged in a transaction”, their loyalty is to the person who engaged them and who will be paying their commission - the seller.

If the For Sale sign has been up for a few months, the vendors may be becoming anxious to get it sold.

How long has it been on the market?

It’s a buyers’ market right now, and without multiple offers coming their way, any vendor is going to look more seriously at an offer, even one that is below their expectations, if their house is sitting unsold for months.

Why is the vendor selling?

Some people might think this question is out of line, but it’s reasonable to engage in polite chit chat with the agent and a fair question.

The dishwasher is almost certainly included, but it pays to check for items that are not considered fixtures.

I guess we take the answer here with a grain of salt. It might be a marriage break-down; they might be in a petty feud with their neighbour and the agent may not be at liberty to disclose all the details. But the sellers might also have gone into a rest home, have bought elsewhere, or have a job offer in another city - some situations that lend a sense of urgency to a sale.

What chattels are included in the sale?

Yes, there’s a standard list (fixed floor coverings, oven, drapes, etc) on the sale and purchase agreement, but you might not have got to that stage yet. There might be a light fitting you love that they have already decided they are taking with them. They might WANT to leave a washing machine, or a bulky piece of furniture that suits the house.

Is this sleepout, garage, or extension consented?

It is appropriate to ask for the vendor’s price expectation, even though it may end up far from the sale price.

They are obliged to tell you, and many will note it in the marketing material, if something is unconsented. Then it’s a case of buyer beware - it could be poorly designed, unsafe. It could be perfectly good, but there’s still a risk the council will ask it to be taken down if a code compliance certificate cannot be obtained.

Information on any (consentable) work done can be found in a LIM report, and often in the council’s property information file. Some sellers will provide these during the marketing period.

What is the price expectation?

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Of course, this is a little game, and we must remember at all times that the agent is A) working for the vendor, and B) wants a sale.

Agents generally want you to commit an offer to writing: It gives them something firm to start with, and the seller can always counter-offer. But it’s not unreasonable to want to know if your budget and expectations are in the ballpark.

In the Real Estate Authority’s own rules “a licensee must not mislead customers as to the price expectations of the client”.

So they can’t for instance price-bait to get an offer in writing by telling you the client will look at offers around $600,000 if the client has clearly stated they won’t take anything less than $750,000.

Do you have a separate “disclosure of defects” document?

House-buying can be a challenge. It’s good to have a few standard questions up your sleeve.

A real estate agent is not required to discover hidden or underlying defects in a property but they must disclose known defects to prospective buyers.

Sometimes defects are noted on the marketing material, but some agents ask the seller to fill out a separate form which can include unseen defects such as scratched wooden floors (hidden by furniture) or a chattel that doesn’t actually work, a known leak - anything at all that the vendor knows about and should disclose to prospective buyers.

Of course, this does not replace getting a property inspection - always advisable.

And in return

If you’ve looked through a house and know straight-away that it’s not for you, it’s reasonable to say so to the real estate agent as you’re leaving.

If they are a good salesperson, they will probably still give you a follow-up call to check and ask for your value appraisal. But since they’ve taken time to answer your questions and show you through, it’s only fair to tell them if you have zero further interest.