They ask if are you going to live in the place or rent the place because are trying to understand you the customer:
- If you are going to rent the property you might be interested in places for sale that already have a tenant.
- If you are going to rent the place there may be places that make it hard to do so. Some condo communities in the US run into problems getting loans because there are too many units that are occupied by the owners.
- If you are going to rent the place, then you might be more interested in places that are empty.
- If you are going to rent the place, you probably aren't going to make the deal contingent on selling your current place.
This also why they ask: condo/townhouse/single family; how many bedrooms; how much land; maximum price; preferred locations; do you have financing in place?