02 November 2014
Thinking About Buying Real Estate? Read These Tips First
Published 02 November 2014
Purchasing any kind of real estate is a major investment, whether it is for business or personal purposes. Before you get involved in these kind of transactions, it's best to get well informed. In this article we give you some tips and advice that others have used with great success. If you need first months rent, last months rent and a security deposit in order to move into a new place, ask your prospective new landlord about paying the last months rent over time.
By adding a small amount to your payment each month you can get into that new place without needing so much money up front. When you are buying a home you should always have people in your own corner. Get your seller agent first thing. Also when you are doing things like having the home inspected or appraised hire your own people as well. Purchasing a home in a manufactured home park can seem like a money saving idea.
Keep in mind that these parks often times carry large fees for new owners, as well as fees if you ever want to remove the home from the park. Read any and all materials on or about the park before you agree to a purchase.
When making an offer to purchase a home, consider offering more "bottom line" money but ask the buyer to pay some of your fees or add in an insurance contract. This is because your offer sounds higher to the seller so they will be more likely to accept it; however, you still save money. If you are buying a home to rent out, consider it's location and potential renters when making renovation decisions. A low income house will not benefit from the expense of granite counters for example.
Although a renter will be excited they are are there, they won't be able to pay a premium for the property simply because you put them in. Hire a professional inspector to closely inspect the home before you buy it. Have an inspection done that includes a room-by-room review, the exterior home components, electrical systems, foundation inside and out, furnace and air conditioning units, plumbing and any crawl spaces, and the attic.
This will enable you to know if there are any major or minor problems with the house prior to purchase. One tip to keep in mind when it comes to real estate is to be sure that you thoroughly check any additions that were done to the house to ensure that they are up to code. This is important because if they aren't up to code, then you will be responsible for doing so.
This is most commonly found in low income areas as well as in situations where the home owner completed the work. When you find a house that is listed at a price that seems too good to be true, there is probably a reason for it. Have your realtor look into the neighborhood to see if it is a safe place to live. Hire an inspector to look over the property to make sure that you are not going to invest in a money pit. Your decision to make an offer on a house should be based on a lot of factors.
One of them is the Home Owner Association (HOA) fees. In some cases this is an insignificant amount, but sometimes the amount reaches the several hundred dollars level. You need to read all the disclosures your real estate agent gives you, and make sure you can still afford the monthly payment on your new home.
At a time like this, when mortgage rates are at an all time low, don't let yourself get talked in to an adjustable rate mortgage. It will save you a little bit of money now, and could cost you huge in the future, if interest rates go up again. Buying property can mean that you enjoy greater financial security. It can also help you to settle down and enjoy better family life, or just feel more a part of a community. Whatever your goals are, keep in mind the advice in this article and you are sure to enjoy a good investment.