Investing in real estate is one of the best types of investment today. The benefits we can gain from investing in the land are beyond our imagination but at the same time, there are some risks. There are so many factors to consider before investing in real estate. If you are in contact with any real estate agent, make sure you ask the following 13 most important questions before investing.
1- What is the ROI?
ROI is referred to as the return on investment. Make sure you ask about the after plans with the realtor before investing your capital amount in the real estate. Real estate always has a lot of potentials but the right question at the right time can help you increase your profit in the future. ROI is the estimated amount of return on investment you will receive when you will sell your property to the buyer.
2- How will you represent my property to the buyers?
Knowing what your realtor knows about your property helps you a lot in demonstrating your property in a better way. A little discussion about what your property agent knows about your property may enable you to present your asset in a more meaningful way. This way you can add more if your real estate agent is missing a point. It also helps in reflecting on your own property as a buyer and you can add more value to your property for better prices.
3- What is your real estate experience and are you capable of finding the right buyer?
It is your right to know about the experience of the real estate agent you are working with. Ask everything you want to know from your realtor. Knowing about his closed deals, successful transactions, experience in the field of real estate and educational background will enable you to make a decision if you want to carry on working with the same agent or if you need to find another one. Ask him about the successful deals and how he managed to do the research work in the past. All these questions are necessary for you to start working with your real estate agent.
4- What is your area of expertise? Commercial or residential?
There are some real estate agents who have experience in only one specified field. Before you give such a big task to a realtor, make sure you already know if he is the one you are looking for or not. Do not hesitate in asking him about his area of expertise. If he is the best match for your kind of property, commercial or residential, go ahead with the same person.
5- What are the best alternate options in the same budget?
Ask for the best available options for your investment in your initial budget. Sometimes there are hidden options that can make your earn more in less duration but some real estate agents are too smart to trap you into something that will only benefit them. Dig deeper before investing your hard-earned money in land. Do extensive research and try to focus on ROI (Return on Investment). Visit different authorized dealers and find the right option instead of relying upon one realtor only. There is still so much in the world unexplored.
6- What is the estimated amount required for registration and transfer of attorney?
Gather complete information about the after-purchase phase so that you can make the necessary documentation at the right time. When you are working on investment, be prepared to face a long registration process. This might be frustrating but the right realtor would not leave you on your own. He will keep a check on the process and will keep updating you from time to time without any inconvenience.
7- Available location for the same budget?
Ask your realtor if he has more options in the current budget but at a different location. Location plays a big role in investment returning rate and profit. Never forget about the competitive locations which are closest to the major attractions of the metropolitan. Such localities have higher chances of growing in near future and offer the best ROIs for sure. Deep and practical research can help you in gaining higher profits and establish a stable business.
8- The nearest landmark areas from your property?
Do you know that locating closest to a mall, park, hospital, IT plaza, Supermarket, educational institute, or any other place which is required to live a peaceful life can automatically increase the value of your property? Investing in real estate will make you look into different factors of properties. If you are planning to invest in residential property then you should look for locations that are easily accessible. But on the other hand, if you are investing in commercial property then you should look for a location that is easily accessible by giant housing societies, town, and residential areas so you can have more clients, consumers, students, and employees.
9- Estimated increase in the price in near future?
Ask your realtor about the expected increase in the value of your property. This practice can enable you to decide your future plans according to the estimated revenue. For instance, there is a Bahria Town Karachi project that offers guaranteed rental income to its investors. This way, you can use the revenue for multiple investments and start doing multiple businesses.
10- What are the possible ways to earn from your investment? (Commercial/residential)
If you are new to this field, find an honest realtor and ask him about the better option between commercial and residential properties. Both are highly effective but commercial properties are somehow more effective in multiple ways. The wide accommodation allows big businesses to use the place for their operations. Your property can be used for multiple reasons i.e restaurants, Real estate offices, educational institutes, banks, and so on. While the residential property can only be used for a residence that too according to the family size, number of vehicles, and so many other factors.
Approved real estate projects always bring income, growth, and business opportunities. You must invest in them for a secure and better future.
11- What is your marketing plan for my property?
Ask your realtor about their plan for your property. Does he have clients for reselling your property? Does he have the means to advertise your property? So he believes that he can bring you good clients in a minimum duration. All these questions show your concern about the reselling of your property. It also gives mental pressure on the realtor that you want good results about your property reselling.
12- Which documents do I need to complete the purchasing procedure?
You should always be prepared for the documentation phase of your property. In the country where we reside, it is very common for official matters to delay. This means that you should be prepared for everything beforehand. You should have all of the transfer letters, power of attorney, national identity cards, nominees list, and every other necessary document that you think you are going to need to prepare before you get to this phase. This practice would not only smooth the process but also ensures that you get enough time to remove all errors.
13- What are the terms and conditions for canceling the deal?
Always keep room for the unimaginable. Even if you are in the final stage of your property deal, always keep an eye on the negative side. The deal can come to an end anytime. For this, ask all of the necessary questions to your realtor before. Ask him about the terms and conditions for canceling the deal, the amount of advance payment that is not refundable, the process fees and who is going to pay for it, the commission for a realtor, and every possible question. This way, if you come to the end of your property deal, you already know what to do and how to do it.
Conclusion
All of the questions mentioned above are necessary for you to ask your realtor. These questions show your concerns for the property, investment, and future plans. Finding the right realtor who can come up with the best answers to all of these questions is still the most important task to do. Always contact and take advice from authorized dealers before investing your hard-earned money.
