3 questions you need to ask your real estate agent

Investing in real estate is one of the best decisions you could make to diversify your portfolio and build wealth. Compared to other investment options, the stakes aren’t as high and the returns are almost always guaranteed.

However, as with all investments, diving headfirst without ample knowledge may result in heartaches instead of gains. To avoid this, we highly advise that you ask your real estate agent these questions before you shake on the deal:

Is this property cash flow positive? 

Perhaps the first and most important question you should ask when investing in real estate is will this property make you money to begin with. Ask your agent about the property’s capital appreciation rate. For beginner investors, this refers to your investment’s value over time as reflected by its market price.

You can also determine the direction of the cash flow by comparing your expected expenses with your foreseen profit with the property. Inquire about maintenance, property management fees, and even repairs. You are getting a good deal if the revenue is still above the cost of the total expenses.

 

What are the competitive advantages of this neighborhood? 

You most likely already had a location in mind before you got in touch with a real estate agent. Perhaps it was the neighborhood’s familiarity that enticed you or maybe it was the attractive prices. Regardless of the reason, the first thing you need to keep in mind is to look at the bigger picture. In connection with the first question, you can’t just decide based on the property’s condition and its value, it’s also a matter of where it’s located in the first place.

This is why properties in central business districts and its neighboring locations are high in demand despite their sky-high prices. Allot some time for research too: walk the streets, ask about the crime rate, look up the vacancy and occupancy rate if you plan on renting out the property — basically, try putting yourself in the shoes of a local for a few days to see if it’s a perfect fit.

Moreover, don’t hesitate to ask your real estate agent about the neighborhood’s weaknesses. Are there risks and threats you need to look out for? How can they be prevented or mitigated?

 

Why should I choose you over other real estate agencies? 

Now that you have your list of properties and locations whittled down, it’s time to assess the real estate agents or agencies you got in touch with. What makes them believe they’re better than the competition? What is their edge over anyone else in the market?

Given how cutthroat the competition in the industry is, take note that when enumerating competitive advantages, they need to be able to show quantifiable proof. They should be able to demonstrate their credibility if they claim to be the experts in the field. Can they provide client testimonials? How about case studies? Doing so removes uncertainty —real estate investments don’t come cheap, so make sure that you are working with someone who is highly experienced and well-established in the field.

Homes & Beyond is helping local and international investors in finding the best properties in Turkey since 2014. Let us know how we can help you at sales@homesandbeyond.com.tr

 

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