Many people buy real estate at some point in their lives and often more than once. Even though it is common to buy real estate few people are educated buyers. I have purchased real estate many times and learn from each purchase. I hope some of the things I have learned, which I will share, will help you with your purchase.
I have to start with the famous “location, location, location!” speech. I hope this isn’t your first time hearing that location is very important when purchasing real estate. Every lot is unique in a variety of ways. Each state, city and even neighborhoods may have their own laws, rules, and culture. Some areas have very low taxes and some may have very high taxes even within a few miles of each other. The view or lack thereof is also something to look for when making a purchase. Location is important is “real estate terms” because “situs” or jurisdiction is absolute. The land does not move or change position. You’ve heard the old saying, “Land, they’re not making any more of it” is true. Sometimes one house may have a great view while the one next door does not. Location is very important to consider for many reasons but it isn’t everything.
Many people think you make money on real estate when you sell but many wise investors will say that you make money when you buy. I think there is money to be made on both transactions. You want to find a good deal when you buy and that will make it easier to make money when you sell. Negotiations are very important and to help with this it is important to have a good realtor that you can trust. Remember that you don’t have to pay the asking price and don’t be afraid to insult the seller with a low offer. If your offer is countered don’t feel that you have to meet in the middle or up your offer as much as they dropped their price. You will end up at a lower price if you go up in smaller amounts than the seller comes down. If the property isn’t attracting the bids of others you may want to let the seller sit on it a while and they will usually come down or reconsider a lower offer. Low offers simply open up the dialog. A seller should never be insulted, but understand it’s all part of the process.
Some people like to find the diamond in the rough but when it comes to real estate that is the opposite of what you would like to buy. If you own the best home in the neighborhood you probably over paid for it. The real estate around your property effects the value of your property, (comparable). If you are surrounded by property that has less value than yours it is bringing your value down. On the other hand, if you find a cheap piece of real estate in an expensive neighborhood with a little work you may be able to greatly increase the value of your property. Each neighborhood has limits to how high a property will be worth no matter how much money is put into it. Don’t exceed that limit otherwise you are basically throwing your money away.
Please continue to learn more and do your due diligence before buying any real estate. Buying real estate can be a wonderful step but may also be a very costly one, if you don’t do your homework first. For further advise, call us. We can be a great source of information and help when buying real estate. It’s what we do every day, all day.
© Matt White - REALTOR® |