When purchasing a home, it’s important to ask the right questions to figure out if the listing your interested in is right for you. Here are 5 questions you should always ask:

1. What do the appreciation rates and rental prices look like?

In the Toronto housing market, the appreciation of a home can vary widely. This is a great question to ask your agent, especially if you’re looking to purchase as an investment property. Your agent can give you a clear picture of the rental prices in the area, if homes in the area have appreciated greatly, or if there are projects underway that could affect the value of your property.

2. How old are any major renovations or repairs?

Things like drainage and guttering are expensive repairs that you should be aware of with any home that you’re planning to purchase. Sometimes, owners will go for aesthetic renovations that can make a home look newer and more appealing, but leave larger and more costly renovations up to the new homeowners. Gutters usually last for around two decades, and sometimes homeowners don’t even know how old they are, so it’s important to check yourself and uncover hidden costs. Don’t be afraid to peek under the rugs or ask to move furniture you suspect may be covering aesthetic imperfections. A home is a big purchase, and you should know exactly what you’re walking into when you’re buying.

3. Have there been any water-related problems?

Have any of the pipes burst? Has the basement ever flooded? Have there been any leaks? Knowing what kinds of water damage, if any, can help you look for structural damage. Take a look around the outside of the house as well. Are there any large trees? It’s entirely possible the roots may affect the pipes or have affected them in the past. Knowing about past water damage can also help you figure out where to look more closely for things like mould or potential repairs.

4. How did the agent decide on an asking price?

A good agent will have a list of reasons why the house is priced at a certain point, and your agent can guide you on what kind of offer you should make. A really simple way to make sure the home you’re interested in is priced fairly is to visit other homes in the area that are also for sale, or ask your agent about recently-sold homes in the area. This will give you a much clearer picture of realistic price points, as many homes in Toronto are priced low to induce bidding wars.

5. Has the property repeatedly changed hands?

This is an often forgotten question, but a very important one. It’s not a great sign if the ownership of the home has changed multiple times in the past five years. Inquire about the last few sales and see if you can make contact with previous owners. The current owners, looking to sell their property, most likely won’t give you a 100% honest answer.

Looking to buy or sell your home? Click here to contact Rachel Levy.