Real estate investing is without a doubt one of my favorite forms of investing for many different reasons. It’s much more satisfying to watch your money go into physical property than it is to watch your money swirl down the drain in the stock market, let me tell you!
But I find that many people who are just getting into real estate investing don’t really know the right questions to ask a potential seller and therefore might not purchase the right real estate investment property to fit their budget and their needs.Checkout Agent for Real Estate sellers in Vernon for more info.
So I thought that I would write a quick article today and suggest several questions that you should ask a seller before you purchase their property. Some of these questions are self-evident, some of them are obvious, some of them are tedious, some of them are hilarious, and some of them are tricky so let’s get right down to it.
The first question to ask a seller is whether or not the house was built on landfill. Don’t laugh, I know you want to laugh but I’m not joking. Okay maybe I’m joking a little bit but I’m also a little serious. Houses are built on landfills and when they are they will settle, which means sink, which means the plaster will crack and the foundation may crack and there can be other structural damages and problems that you don’t want to deal with. So, just always ask.
Next ask whether or not the windows are insulated or double glazed. Insulated windows and double glazed windows are much better all the way around and will save you and your renters substantial energy costs throughout the years, plus they just make for a better living environment.
Next ask whether or not the house has been protected against termites. Again, I’m not joking… well not really. Termites can destroy your investment and you just don’t want to deal with them if you don’t have to so always ask for written proof from the pest control firm stating that the house has been treated.
Next ask whether or not the waste system is hooked up to a city sewer. I know in this modern technological day and age you might think that it’s incomprehensible that a house would not be hooked up to a city sewage system but you’d be surprised how often that is the case. So it’s good to just ask and get it out in the open quickly and move onto the next question.
Finally you should ask what the inside diameter of the water pipes are. A good diameter for feeder pipes is about a half an inch and a good diameter for main runs is about 3/4 of an inch. This may seem like a slightly silly question and one that seems a little neurotic but trust me, it will come in handy for you to know this stuff in the future.
So there you have several questions that are fairly standard in nature that you can ask a seller before purchasing their property as a real estate investment. Some of the questions are more important than others but all of them will set you firmly upon the path to well-informed investing.