Investing in real estate is not just about earning revenues or expanding your income streams it is also about ensuring that you- your assets and interests – are properly protected and safe.

Due diligence is an important factor in helping you make your property investment decisions because while there are opportunities that are presented to you on a silver platter, it does not mean it is without hitches or issues.

Identifying your real estate investment options

Several investors have admitted missing out on great investment opportunities simply because they failed to do these easy yet important aspects of due diligence – asking the right questions from their real estate agents to help them gain a good understanding of their potential investment options.

Industry experts strongly recommend that when it comes to property investments, it is important to take note that making enquiries to source out important information that can also include helping you save money off a property’s purchase price.

The best way to do this is to get the undivided attention of your selling agent and determine whether you are dealing with the right person to help you make the most out of any investment opportunity that may come your way.

Deal only with licensed and authorised listing agents

It’s not surprising for real estate agents to appoint a representative who they could delegate to do the leg work for them, especially agents who are focusing their efforts on negotiations and closing deals with clients.

But as an investor, you don’t want to talk to any middleman or broker, instead, you need to be dealing with the primary agent where you can get the most direct and straightforward responses to details you need when considering their listed property for your investment portfolio.

The reason for doing this is because it is the most practical and sensible way since the primary agent knows the particular details of the listed property and is your primary contact officially recognised by the property owner.

Not only would you get the most accurate property listing value and access to details, but you also get to avoid gaps in communication and interaction.

Always check for the conduct of inspections on property options

Use this question as a way to gauge market appeal and responses to the listed property. Asking for a summary or breakdown between open home and private inspections may also help you get a pulse of the sincerity and interest level of buyers.

It’s also good to ask the agent how long the property has been listed on the market.

This information is vital in helping you determine if the asking price is accurate enough in the market.

Overpriced properties can be negotiated for discounts, which are indicated by low inspection numbers.

Do not hesitate to check for contracts handed out by agents

This question will let you know if there have been offers on the listed property. For instance, serious prospects will ask for request contracts so they can go over the details of the deal or see if they agree to all of the conditions for the property sale.

Some buyers would also want a lawyer to review the contract and seek advice to find if the property is a good fit for them.

This is also a good way to see if new competitors are venturing into the market.

Determine if the agent is keen on ensuring pest and building inspection processes

Much in the same way as this will help you determine if other competitors are looking into the market it will also help you measure the level of intentions of buyers, particularly those that are on the auction block.

Since auction buyers are presumably purchasing property unconditionally at an auction, those who are bent on buying the property will be willing to invest in a pest or building inspection before auction day.

This is for their protection to ensure that they do not get any surprises regarding the property after making the winning bid.

The fact that buyers are willing to put up the money for these inspections is a good indication of who you are up against.

Performance, success rate and track record

Always remember that the decision to sell a property is governed by an immediate need or under distressing circumstances.

But do take comfort in the fact that asking this question gives you the leverage on how you can best make your offer for the property. For instance, it would be easy to make an offer for those who are in hurry to sell their property or much harder to haggle for a lower price for those who are not in a hurry to let go.

Remember that selling agents are also aware of such tactics and it is their responsibility to get the best possible price for their clients.

Negotiation skills

In the real estate game, the price alone is not the only factor that can make it a good investment asset. This is why it is critical that as an investor you know how to get the most value out of your investment opportunities.

This can also help you strategise your finances in terms of acquiring the property which may be beyond your buying budget and all positive signs lead you to clinch the property as your best investment opportunity.

This can also help you determine the seller’s need in letting go of the property and give you the edge in offering mutually agreeable payment terms that can benefit both parties in the process.

If they consider you as the buyer who can help them realise their goal for their property, you are in the best position to close the deal.