Pass/Fail Questions to Ask Your Realtor

There’s an important distinction between a residential real estate agent or broker and an income property broker. In fact, it’s a bit of an anomaly because it’s not quite a commercial transaction and it’s not a residential transaction. Finding an agent who can help you understand what you’re buying and who knows the terms, concerns and trends that are affecting your investment over the long haul is critical. That said here’s a good set of questions that can help you start the conversation:

1. Do you help other buyers and sellers who are in the market for income properties?
2. What tools are you able to provide for evaluating properties? You’re looking for specific apps, market data that supports income or resale after you’ve held the property for a time.
3. Can you refer me to property managers, inspectors, contractors who understand income property?
4. Do you own income property?
5. Can you show properties on my schedule?
6. Can you point me to resources for grant money or subsidized housing if I go that direction?
7. Do you work alone or do you have a team?
8. How do you get paid?
9. What’s your best, worst and weirdest experience in this business?
10. What are some of the risks that are common in the area that I’m looking? Lead, asbestos, radon, foundations, water/sewer lines.
11. What’s the historic appreciation rate of the area I’m looking?
12. What’s the historic vacancy rate in this area?
13. How do you check zoning and code enforcement?