Investment in a real-estate property can turn into a real nightmare if due care is not given to planning and preparation. With the financing options at an all-time high, real estate market will not lose its sheen anytime soon. Apart from traditional methods through bank loans, mortgage companies etc., creative financing has also come into picture where seller is entitled to receive a monthly payment which overtime makes up for the asking price. People get so lost in a bidding war that they lose the sense of their affordability. Certain things need to be kept in mind before splurging out your hard earned money on home property. Should all parties benefit from the transaction, refraining from common mistakes can avoid any vexatious scene.
· Have you done your research well?
No wonder, some people are credited to have born with stars as they land up owing a dream property. What is veiled is the research and preparation time they had put together to convert their dream into reality. One must ensure that he/she is not blind sighted by the advertisements but must be wary of the neighborhood. Asking price varies from region to region and gives a fair idea of the housing trends in the region. Analyzing it will put the potential buyers in a better position to weigh the pros and cons of buying a property in a particular region.
· Never lose the sense of affordability
How much lucrative the offer may seem in hand, you must always remind yourself of your limits on affordability. Undoubtedly, loans come in handy at the time of crisis but that too needs serious considerations. Experts suggest that assuming 20% as down payment, buyers must never look for something more than 3-5% of their annual household income. This, however, does not include petty debts they may already be bearing on sides. Purchasing a house should not be looked as a luxury to boast of but a place to build memories with. Your debt to income ratio should not exceed 30%. Existing financial condition should always be a precondition before looking forward to buying any property. This not only saves time of both the dealing parties but also helps in planning ahead with a better frame of mind.
· First 30 days can be a springboard to prosperity
It is a common sight that initially asking price seems too high. Potential buyers must, however, see this time as a golden opportunity for negotiation. In case of low prices, you must avoid getting entrapped in price wars. There are good many examples where buyers do not bid quite high but end up getting the offer. Factors like preapproved finance back buyers’ seriousness towards the property and are often highly sought after by sellers. This, however, should be wrapped up in first 30 days since later on the property becomes stagnant in the market. Sellers too should avoid such situation since it leaves an impression of his non-seriousness for his property.
· A real estate agent can make it all a cakewalk
Real estate agents are the people with ‘know-it-all’ when it comes to real estate. Their business keeps them apprised of the latest information about properties on house sales and their neighborhood. They, having their familiarity with the process,can turn out to be real assets. With their negotiation skills, they can help you get the best price of the property at no cost since they adjust their commission with the seller.
Investing in a real estate property should be seen as a long term goal. It can be both complicated and demanding because of its competitive nature but the returns are worth looking forward to. If you’d like to seek legal advice on such critical matters, you can consult experiences professional services like www.savemoneyconveyancing.org.uk. They have created a niche in the field providing tips on financial matters and helping people get the best possible price.
Tony Callison is an expert on real estate market and helps people in getting real price for their property. He likewise advises taking help from professional firms like www.savemoneyconveyancing.org.uk to buy you peace in finance matters.