Beginners in real-estate investing and first time home-buyers would often experience blunders when they look for houses to purchase. To avoid such frightful experience, which could lead to loss of time, effort and even worse your money; you would have to learn what common mistakes are made in real-estate and how to avoid them.
Table of Contents
Lack of research
When buying properties and houses, you would have to go back to the basics: which is doing some research before proceeding with any kind of purchase. Research is basically asking questions about the house or the property. You could ask questions similar to the following to have an idea about the property:
- Reasons for putting the property on sale
- Any problems about the house’s foundation that needs to be addressed.
- If the former owners have paid for the house and the methods of payment.
- If there are any problems in the area where the house and property is located like being near a flood zone, termite problems, etc.
- If there are any problems in town area.
Not considering the bidding and maintenance cost
Your research would also include the price. It is a common scenario when a buyer would tend to offer a higher price for a property that would fit their needs and demands. Before bidding for a property, search for similar houses in the area and how much were the sold in the last few months. It is better to look at houses and properties that were already sold than those houses still up for negotiations or sale. Buyers should bid consistently with the other houses’ prices.
Aside from the upfront price of the house or property, buyers would also forget to factor in the maintenance cost of the house. Without considering the maintenance cost, home-buyers would often find themselves buried in debts. Real-estate investors should always keep the expenses in mind when buying property. Since the cost of improving the home would definitely have an impact how they would price their house. Having the home inspected could put a dent on your bank account, but never sacrifice it. Always get a good home inspector even if it means you would be spending more
Too much waiting
There is nothing wrong with waiting for the right house but a home-buyer should be realistic. It is difficult to find for a home that would fit 100% with their needs and demands. Home-buyers who are looking for homes with this method would usually by pass homes that would be meeting nearly all of their standards. Usually, home-buyers who wait around for their perfect homes for sale would not notice that the cost of purchasing properties is constantly increasing. To avoid this, it is important to sort out priorities. Identify the top needs that should be provided for a prospective home.
Without any professional assistance
Another mistake that most home-buyers make is that they think can get a house on their own. There is nothing wrong with buying property and house without any professional help. It is just that it could be very stressful and would take much of your time. Real-estate agents have the resources, contacts, and tools that would be able to help make the search quicker. Aside form the real-estate agent, if you’re planning on investing on this industry then you would also need a home inspector, a lawyer and an insurance representative.