5 Questions to Ask Your Real Estate Agent When Buying a Multi-Family Home

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Working with a real estate agent can be a big help if you’re considering buying a multi-family home property. An experienced agent will be knowledgeable about the market and can help you find the right property at the right price. They can also offer advice about your purchase and can put you in touch with qualified property managers, contractors, and other service providers. Moreover, your real estate agent can help you better understand the process involved in buying a multi-family home. With this, here are questions you should know the answer to, and your agent can help you with:

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What are the rates for multi-family homes in the area?

Knowing the rates for similar properties in the area is important because it will help determine if the multi-family home’s asking price is fair. If the property is overpriced, you may be able to negotiate a lower price with the seller. Conversely, if the property is underpriced, you may want to consider whether there is something wrong with it that you’re unaware of. Aside from the price, it would also help you make an informed decision by finding out about the vacancy rate and the average rent in the area. This will give you an idea of how easy or difficult it is to find tenants and what you can expect to make in a month.

How long has the property been on the market?

Knowing how long a property has been on the market could tell you a few things. It could mean that there is something wrong with the property, that the sellers are desperate to sell, or that the price has been reduced multiple times. You could also ask your agent’s opinion on why they think a specific property isn’t sold yet because their input can provide you with a different perspective. Likewise, suppose you’re really interested in a property. In that case, you should also ask if there are other offers on it so you’d know if you need to make a higher bid or if you still have more time to finalize your decision.

Who can help with the legal matters for this purchase?

When buying a multi-family home, you’ll encounter legal processes involving the transfer of ownership from the seller to you. These matters include conducting searches, negotiating the contract, and transferring any home utilities under your name. Ensuring the smooth processing of these steps is necessary for efficient completion of purchase. And the one who can help you with this is a legal professional specializing in the conveyancing process. Hence, you can hire experienced conveyancing solicitors whose advice and services can make the legal process flow more smoothly. Doing so will help you understand the technicalities involved in the purchase and avoid any potential legal problems that may arise.

Does the property require any repairs or renovation?

When buying a multi-family home, it’s important to know whether the property requires any repairs or renovation. If it does, you’ll need to budget for those expenses and decide whether you’re willing to shoulder them or if it could be a sign that you need to look at other properties. You would also need to determine the severity of the damages and how long it will take to address them all. Remember that a multi-family home is much larger than a regular residential property. If all the units need repairs, you might spend more money than you initially expected. However, if the property doesn’t require any repairs, that’s good news and will save you time and money.

Are there any planned construction projects in the vicinity?

Having nearby amenities such as schools, public transportation, and parks will significantly boost your property’s rental value. But if there are any planned construction projects in the area, it can also affect you. Depending on what they’re building, it could potentially increase or decrease property values. For example, if a new shopping mall is being built, that could bring more foot traffic and business to the area, whereas if a funeral parlor is being constructed, it could potentially dissuade some people from wanting to live there. As such, knowing any planned construction projects is important to make an informed decision about your investment.

A real estate agent can make buying a multi-family home much smoother and less stressful. It can be easy to overlook some details because you’re likely juggling many things, but your agent will be there to help you every step of the way. Be sure to ask them any questions you have and get as much information as possible to make an informed decision about whether a specific property is right for you and your portfolio.

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