Tips to Buying

Buying smart

While previewing property be sure not to be detracted from a potential investment because you don't like the wallpaper, carpet or paint colors. These are easy fixes that can help eliminate competition and provide a financial opportunity when negotiating the purchase price. Many house buyers become caught up with the emotional input they receive while walking through someone else's home. Do your best to block out these costly feelings and focus on the real estates potential. In general, home buyers prefer open floor plans, natural lighting & usable square footage. A 4 bedroom condo with only 1300 square feet has a limited buyer pool and could make things more difficult to financially capitalize in the future. Be sure that the bedroom count is on par with the amount of square footage your getting for the area. A 2000 Square foot 2 bedroom condo in an upscale area may do very well but regress in price significantly in more moderately priced regions. Many modern families prefer one large great room to entertain, opposed to the living space being divided up into seperate dinning, living & family rooms. Does the real estate currently satisfy that need or could it possibly be changed in the future and increase the homes value? Unless you plan to occupy your home for the next 20+ years, be sure to choose a house that will appeal to the masses.

Selecting a location

Be the little guy on the block Don't be the victim of a nasty thing known as regression in the world of real estate. You know that neighbor who just spent another $300,000 remodeling their home in a $500,000 neighborhood? Well that neighbor of yours will have a tough time getting potential home buyers, banks & appraisers to see the improved value. The advantage of being the little guy on the block is that your homes value will increase as a result of surrounding higher priced, larger homes. This idea applies to surrounding neighborhoods as well. If the track you live in consists of homes less valuable then those in surrounding tracks, your real estate will most likely financially benefit from it. Be aware of the zoning mix & structures surrounding the property in question. Obvious things such as busy streets & shopping centers can be death or a blessing to your next real estate investment. What if the subject house has a home owners association. An HOA can help maintain curb appeal, value & regulate neighbors, but at what cost? Older neighborhoods without any home owners association can become distressed and run down more easily. Home owners association dues are not a legal real estate tax right off so do your best to research their value. The money going towards your HOA dues may have been better spent on more valuable real estate without an HOA. Study what amenities the HOA includes. Be sure the HOA has sufficient funds to maintain the neighborhoods value & isn't poised to hike rates soon.

Financing

Before getting to involved in the acquisition of new real estate, be sure to speak with an experienced mortgage professional. This can save you time, improve your chances of closing a deal & give you more leverage when submitting your offer.

Inspections

Have your own inspection(s) completed. Not being aware of outdated electrical systems, foundation problems & past flooding may yield tremendous financial obstacles that you could be responsible for. Inspections provide home buyers with an insight into the homes history, problems that need to be address immediately or in the near future. They can also serve as a bargaining chip in the form of buyer credits or free repairs while in escrow with the seller.