Mistakes to Avoid When Buying Real Estate

 

Beginners in real-estate investing and first time home buyers often experience costly mistakes when they purchase a house.  To avoid such mistakes you will have to learn a couple of things, what these common mistakes can be and secondly how to avoid them.

The biggest mistake by far is:

  • Lack of research

When buying properties start with one of the core basics; which is doing some research before proceeding with any kind of purchase.  Research is asking questions about the house or the property, and receiving through answers. You could ask questions similar to the following:

  • What are your reasons for putting the property for sale?
  • How long have the current owners had the property?
  • Are the Real Estate taxes pain and current?
  • Are there any liens or are there any encroachments on the property?
  • Are there any problems with the house’s foundation?
  • Are there are any problems in the area where the house and property are located like being in or near a flood plain, termite problems, etc.
  • Are there any plans for major construction projects in the area?

Your research would also include the current price and any recent sales prices of this property and similar properties in the area.  It is better to look at houses and properties as far as a comparable that have been sold than those houses still up for sale.  Buyers should use these sold as a basis for bidding and not getting emotional and carried away.

Aside from the upfront price of the house or property, buyers should not forget to factor in the maintenance cost of the house.  Without considering the maintenance cost, homebuyers could find themselves buried in debt.  The cost of any imminent repairs should definitely have an impact on the price of the house and the amount of your offer. Having the home inspected could seem like an unnecessary expense, but never sacrifice it.  Always get a good home inspector even if it means spending a little more.

There is nothing wrong with waiting for the right house. Sometimes a little patience can save you a lot of money.  It is very difficult to find a home that would fit 100% of your wants and needs.  Homebuyers who are looking for everything usually bypass homes that would meet nearly all of their criteria, and often wind up paying more.  Another cost factor is the ever-increasing cost of homes. Homebuyers who wait around for their perfect home often wind up paying more. To help avoid this, it is important to sort out priorities, into two categories, wants and needs.  Identify the top needs, what the home has to have and if you have to sacrifice trim from the wants list.

Another common mistake that most homebuyers make is that they think can purchase a house on their own, without the aid of a Realtor.  There is nothing wrong with buying property without any professional help, if you have all the time to look and do all the research yourself. Real-estate agents have the resources, contacts, and tools that will make the search quicker. Aside from the real-estate agent, find a good attorney, one that specializes in real estate. Other professional’s you will need are insurance and home inspectors.

The largest purchase of your life should not be done alone. Employ real professionals to guide you along the way. Notice I said guide, not do the work for you. In the end you will be living there for years to come and paying all the bills, so do your research along with the professional and your chances of purchasing a quality property will increase

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