What does it take to make a smart real estate purchase? So many people make the mistake of sealing a real estate purchase or deal without weighing the pros and cons just because the deal appears to be juicy. This article dishes out 5 worthy tips to bear in mind before finalizing that life-changing deal.
Real estate scam is a common trend not only in this part of our world, it is also prevalent in the entire planet. However, what could be pardonable and not seen as a scam is people paying way too much for a house, especially when they can’t even inspect the house before moving in, only to find out that the entire problem plaguing the world is deep-rooted in their new home.
It has happened several times in the course of my forays into the real estate community, and I sometimes what to wonder, who really is to blame for this anomaly. Will it even be right to call it an anomaly? I think it shouldn’t be. I will rather say it is a smart move by a seller on an unsuspecting buyer.
Here are top five tips for making a smart real estate purchase so that you don’t run out shouting that there is an hyena in your house when it’s just an innocent puppy.
1. Stick to Your Budget
This is a common mistake among first time real estate investors. Most often than not people get carried away by that fancy house, and the breathtaking exterior so much that they forget in a split second that the house in particular is outside their budget. The transactions would have been completed before they realize that they just opened their eyes wide and confidently walked into a mouse trap. This is not okay! It is expedient that you don’t just think about that beautiful apartment you want to empty your account on, it is also vital that you think about your monthly carrying cost and be honest about your lifestyle. Not putting into consideration your monthly income before acquiring a house that will leave you as empty as a bird’s nest in December will only draw you closer to heaven’s door. And if you have too many buts in your life then hell’s gate will be a better alternative. There’s nothing as worse as being as poor as a church mouse, yet living in a beautiful mansion; who does that?
2. Don’t be Afraid to Walk Away
It is common knowledge that acquiring a house is an emotional purchase. It is possibly the most important investment in anyone’s life, since it’s where you’ll be living, raising your children and making a home for yourself. Albeit, keeping your emotions away from that home purchase in the best way possible will go a long way in helping you strike a balance instead of trying to find your balance in the event that your emotions get the better of you. You should love your house, but you should love it because it’s in good condition and because the numbers work. Inspecting a house before a purchase is crucial to save you of the emotional drama that comes with a home purchase gone bad, and if you can’t afford it or the work that comes with it, then its best you walk away from that deal when you can.
3. Give Every House a Chance
Don’t draw conclusions or make hasty decisions with just one home inspection. The fact that there are a couple of houses up for sale in your preferred location, should be enough reason for you to do your homework well by giving every good house a chance. No matter what it takes, you will eventually be glad you did
4. Think Long-Term
When you look at a property you are interested in, what do you see? Do you see yourself living there beyond 2-3 years or do you see it as a place you just want to lounge for a year or thereabout? Why would you want to purchase a house you don’t see any future in? Before you jump into a real estate purchase, ask yourself: “What is the purpose of this property for the next 5-10 years?” Except, of course the only reason you want to purchase the house is to put it up for sale later.
5. Have a Support System
Having a real estate agent who understands your financial and personal situation is key, and great advice from a mortgage specialist and lawyer can be invaluable to the home-buying process. But what many people forget is to have a personal support system in place when they go house hunting. Advice from those close to you – family members, a partner, friends is just as important to help keep you on track and avoid getting carried away. It’s easy to get caught up in the excitement of buying a house, so having the personal support will keep you grounded.