The right questions can give you a real edge when buying
Knowing which questions to ask a real estate agent is one of the most practical skills you can develop as a home buyer. Agents often share more than you’d expect if you build a little rapport and ask the right things. The information you gather can help you assess the property’s true value, understand the seller’s motivation and tailor your offer accordingly.
Build rapport first
Real estate agents are more forthcoming with buyers they like and trust. Before you start asking detailed questions, introduce yourself, shake the agent’s hand and show some genuine interest in the property. Walk around, take notes and make a good impression.
Once you’ve had a look around, you can move into more specific questions. Agents who feel comfortable with you are more likely to share useful information, sometimes including details that help you negotiate a better deal.
Before you attend any inspection, make sure your finance is in order. Knowing your realistic budget, and ideally having a pre-approval, means you can act quickly if you find the right property. Use our borrowing power calculator as a starting point to understand your range before you start inspecting.
Why are they selling?
This is the most important question you can ask, and the one agents are most likely to answer helpfully if approached the right way. Understanding the seller’s motivation tells you a great deal about the likely sale price and timeframe.
A seller relocating interstate for work has a practical deadline. They need to sell before they move, which can make them more willing to accept a firm offer at a realistic price. A seller who is simply upgrading to a larger home may have no urgency at all and can afford to wait for the price they want.
Even if the agent gives you a vague answer, their response reveals something about how motivated the seller is. Any detail you gather helps you tailor your approach and your offer.
How long on the market?
The length of time a property has been listed has a significant effect on the seller’s position. In the first couple of weeks after listing, a property attracts the most interest and the seller feels the strongest hand.
After 60 days on the market without a sale, the property becomes harder to sell. Potential buyers start to wonder what is wrong with it. The seller and their agent are more aware of this pressure.
If the agent’s contract to sell the property is nearing expiry, the agent has a personal incentive to encourage the vendor to accept an offer. That can work in your favour.
Some owners are happy to wait years for a price they have set in their minds. Others are desperate to sell and will accept a significantly lower offer. Understanding which type of seller you’re dealing with is valuable information.
Also ask what the agent knows about why it has been on the market for a while, if that is the case. There may be a straightforward reason, or there may be something about the property or strata that is worth investigating before you proceed.
Price history and offers
Ask the agent what the original asking price was and whether it has been reduced since listing. This tells you whether the seller’s expectations have shifted and gives you a clearer picture of where negotiations stand.
Also ask how many offers have been made and, if any were declined, what the agent knows about why they fell through. You might learn that a previous buyer failed to get finance, which tells you nothing is wrong with the property itself. Or you might learn that a previous contract fell over at the building inspection stage, which is very much worth knowing.
Presenting yourself as an informed buyer when you ask these questions is itself an advantage. Agents give more useful answers to buyers who clearly know what they’re doing.
As a general guide, Australian properties often sell for up to 10% below the original asking price, though this varies significantly by market, location and the current level of competition. Understanding the tactics real estate agents use when managing buyer expectations will also help you read the negotiation more accurately.
Do your own research
Beyond the questions you ask the agent, there is important research you should do independently before making an offer.
Being well-prepared on the finance side is as important as being informed about the property. Knowing the reasons home loans get declined helps you address any issues before they slow down your purchase.
Common questions
Q: Should I tell the agent my budget?
Be cautious about revealing your maximum borrowing limit to an agent. They represent the seller, and knowing your ceiling could reduce your room to negotiate. It is fine to give a general range, but avoid stating the upper limit of what you have been pre-approved for. Instead, make offers based on what you believe the property is worth.
Q: What questions reveal how motivated the seller is?
The most revealing questions are why they are selling, how long the property has been on the market and whether any previous offers fell through and why. Each of these answers gives you insight into how urgently the seller needs to complete the sale and how flexible they are likely to be on price.
Q: How do I negotiate a lower price on a property?
Research comparable sales, understand the seller’s motivation and make a realistic offer with a clear settlement timeline. Being pre-approved demonstrates you are a serious buyer, which can give you more leverage. Avoid making an offer so low it is offensive, as this can close off the conversation entirely. Start at a considered number and work from there.