Buying real estate, whether it be land, house and lot, or a condominium unit, is never easy. Not only does the buyer need to have the financial capacity or the determination to fulfill the long-term obligation of paying off a loan to cover for such purchase, he must allocate sufficient time to search and research before making that purchase decision.
Despite the due diligence expected of the buyer, his vetting will not be complete without him asking several key questions, whether directly to the seller or through the seller’s agent.
Here are a few of the key questions.
Why is the property for sale?
There are numerous reasons why a seller wants to dispose of his property. He may be in the market for the newer unit, or intend to move out because his requirement had changed, such as wanting a larger or smaller unit as he may be getting married or expecting the number of family members to increase soon. The seller may be a new empty nester couple, thus wanting to be more practical and opting for reduced space for themselves. It is also possible that the buyer is planning to migrate or transfer to a location closer to his work place or nearer to the school of his children.
Depending on the reasons for selling, the buyer can have a better appreciation on how to proceed with his follow-up question/s.
What’s included in the sale?
While some sellers may include furniture, appliances, fixtures, equipment and accessories that they used in dressing up the unit to make the unit attractive for sale, it is often not a “deal breaker” if the buyer wants to exclude them from the deal.
To reduce the possibility of misunderstanding, it is best to enquire and clearly agree what are to be included or not in the sale. A buyer should not be afraid to ask how much of an amount can be reduced from the initial selling price if some those items are excluded from the sale.
How long has the property been on the market?
A hefty price tag is often one of the major reasons a property takes time to be sold. While a seller wants to get the best deal, the buyer is always on the lookout for a bargain. This conflict of appreciating value and worth by the two parties has resulted in delayed sale.
There are other explanations too. For example, better options may be available within the neighborhood; there are “defects” noted or discovered in the subject property; or maybe the seller was not receptive to the counter offers of potential buyers.
How old is the property?
As a property ages, problems are expected to occur. Asking its age will prompt the buyer to query about leaks and seepages, plumbing issues, drainage and sewerage concerns, conditions of appliances, electrical systems and wiring, etc. If these items had been fixed recently, ask for guarantees and or warranties to have peace of mind. Seeking information on renovation is likewise important as it tells potential buyer of changes made on the original plans or elements of the property.
Does the property have issues?
Buyers do not normally ask for sellers’ disclosures, nor do sellers candidly admit and share critical information. Consequently, buyers are surprised to find it difficult to move in to the house or unit because of issues/concerns of the subdivision association or condominium corporations such as unpaid real property taxes, utility bills, association dues and fees. Unless discovered early, buyers may eventually be faced with the arduous task of having to re-connect the utilities, be charged for belated payments, penalties and interest, and worst – have a lien on the title. Buyers of properties located in natural hazards and geo-risk areas are likely to experience possible inconveniences too.
Don’t be afraid to ask these questions. A friendly chat with the seller may reveal a lot of facts that you need in making that important decision of whether or not to buy the property.
* * *
Henry L. Yap is an Architect, Fellow of both Environmental Planning and Real Estate Management, and one of the Undersecretaries of the Department of Human Settlements and Urban Development.
