The value of Real-estate today is at an all time high, which is evident from the numerous Real-estate millionaire lists. However, despite the fact that there are numerous Real-estate millionaires, there are still many who are struggling to get it right. It is sad to note that the common mistakes that are made by many Home-owners end up costing them dearly. Some of the most common mistakes that Home-owners make include: Purchasing a house on impulse without properly investigating the market prices; Not seeking professional advice on how to fix up the house and carry out repairs; Not hiring an agent who will do the paperwork; Not carrying out repairs in the presence of a specialist; Not considering the cost of insurance and taxes; And most importantly; And not maintaining proper home records. These mistakes will cost you dearly because they will lead you to financial problems in the long run. Let us briefly look at each of these major mistakes and how you can avoid them.
Buying a house on impulse is a big mistake. This is usually done because the person is not aware of the current market values. They often buy houses because they want to’move in’ to a new house. And before they know it, the house has already increased in price. And if you have been living in that house for a few years, you probably cannot afford to pay off the loan, let alone increase the market value further. So be very careful when purchasing such houses.
Another common mistake amongst Home-owners is that they hire an agent to do the paperwork for them. Many agents have profited through charging Home-owners a small amount for their paperwork. But this is no longer the case. As a result of the passage of time and competition among Real-estate agents, the Real-estate market has become so much more transparent. With the help of the Internet, you can easily find information about Real estate properties on your own.
It is important to seek advice from an agent who knows what he is talking about. You can also talk to people who have recently bought a house in the same area. But do not fall into the trap of their sales pitches. These individuals will try to sell you on the next best thing to the next best thing. And you must be extremely careful while doing negotiations with them.
Do some research about the cost of houses in the same neighborhood before buying one. Compare the rates that different brokers are offering and select the most affordable Real-estate agent. Also take a look at the houses available in the same neighborhood. See which of them have better features like a well-maintained garden, swimming pool, club house and so forth.
While buying a house in the same neighborhood, you should also know whether the Real-estate agent or broker involved has any previous complaints against him or her. Also confirm whether they offer clear-cut financing terms. In case there are any suspicious elements in the neighborhood, you must investigate about it before you proceed any further. And finally, avoid letting the agent negotiate for you; deal with your own intuition as a buyer.