Real estate investment is no child’s play, you can not afford to make a mistake in the process. Think of the fund invested, the time spent in searching for a property and going through the acquisition process.
As a property buyer or investor, you must ensure that all necessary procedures are followed, if you want to get the best value on your property investment. Most especially, to avoid being a victim of property investment scam, you must be diligent and thorough with your investment.
In this blog post, we have highlighted essential areas you must not overlook as a property buyer or investor, they include;
Not Conducting Research on the Property You Want to Invest In: A major mistake you can make as a property buyer is not verifying the validity and authenticity of the ownership of the property you want to buy. Does the current holder have the right to transfer ownership of the property to another legally?
You should also evaluate the property market value as regards the potential future development of the property location as this can affect the appreciation of the property.
Acquisition Cost/Budget: The buyer must verify that the purchase cost of the property matches their budget as well as other hidden costs attached to owning the property. Ensure that the property you are inspecting to invest in is not more than your budget. If you are looking to acquire a property way above your budget, you might fall victim to fraudsters.
You should also learn about other costs such as property taxes, renovation or repair cost, insurance cost and any other liens on the property. Knowing all these will help you prepare for contingencies to avoid losing ownership of the property in the future.
Not Evaluating Future Value/ Development of the Property: You should conduct research on the market value of the property you intend to buy as well as if there is any development plan for the property. These two (2) factors, market value and development are majorly influenced by the property location. This is why you must ensure to buy your property in an area with potential future industrial and infrastructural development.
Not Reviewing the Property Documents: A property document is what is used in transferring ownership from the buyer to seller through formal and legal review. The property document states all usage right on it including the title, zoning, liens as well as restrictions on the property.
As a property buyer, you should review and confirm the legality of the property document. You can also seek the service of a real estate legal agent to review the content of the document.
Not Inspecting the Property: As a property buyer, you should schedule a visit with your real estate agent to inspect the property. You will be able to access the physical condition, either on the structure or environment of the property.
You will also be able to determine if the property will require major renovation in the future and if you are willing to spend another budget on renovating the property.
Conclusion
Buying a property comes with a lot of process to follow which can be overwhelming. Imagine realizing that you made the wrong choice after investing in a property.
This is why you must follow the necessary process to acquire a property, you can also seek the service of a trusted real estate agent to avoid making mistakes in your investment.
If you are looking for a trusted real estate company with the best properties, you can check out our website at Sterling Homes. We have the best real estate agents who are willing and ready to guide you through the entire process in acquiring the best property for you.