I was wondering if any of you guys have some really good weed out questions that I could ask sellers and agents about their property. Something other than code violations, utility and repair problems, lease stuff etc…
Generally, I don’t ask a lot of questions of sellers or real estate agents because I wouldn’t believe their answers. Sellers and real estate agents LIE (early and often). Distressed sellers and real estate agents also are frequently totally ignorant about investment properties (otherwise, they would be successful investors instead of sellers and real estate agents). Since I wouldn’t believe the answers, I don’t ask the questions. If I was depending on the answer to a question, then I would get it IN WRITING.
Good Luck,
Mike
Better to ask for documentation than ask questions…
Mr. or Mrs. Seller/Agent…do you have the most recent copy of the tax bill, survey or non-conforming prior letter, heating oil receipts, etc…etc…
An owner should have them on hand, a good agent should be able to procure them…Hint…look at the name on the tax bill when dealing with owners, good way to tell the person you are dealing with is indeed the owner and has the power to sell the property, rather than a go-between or relative…the latter could complicate the deal getting to closing.
Thanks guys,
I’ve also read that if the owner itemizes their taxes I could also ask to see the schedule E form and that would also supply me with good info. Now have any of you ever tried that method and if so have you had any issues getting the info?
“Why are you selling?”
“How much are you asking?”
“I normally pay around “X” (50% of what they tell you they want) for a property in that neighborhood and in that general condition, is this an amount you might be willing to consider?”
Is that price flexible if I could close in less than 7 days?
Chris
I’m not looking to sell REIforNewbies I’m just looking for information.
I’m pretty sure he understands that, Mr_R…
What he gave you are questions to ask the seller - like you asked in your original question! While they seem like ‘easy’ questions, ask them ands don’t say anythig at all and see what they tell you.
Keith
Ask “what are you asking for the property?” and “what do you think the property is worth?” Those two questions will tell you pretty quick if the seller is motivated or not. They may not be right on the value of the property, but if there is a big gap between the numbers that means they know they have equity and don’t mind giving it away. Of course like others said, they do lie and they may not have the equity they think they do.
Sorry for the misunderstanding. Thank you all for your input I will be sure to take all you’ve given me into consideration.