Buying Properties - 9 Warning Signs You Should Know About

Although mainly targeted towards buyers interested in investment properties, this article will address some of the typical warning signs of an unprepared buyer. Feel free to go through this list and if you find a match, fix it quickly! The home buying process should be clear, well defined and carefully planned, so make sure you leave no stone unturned while seeking information.

1. Not knowing exactly what you want - Just as in any business, it pays off to be prepared and have a plan in real estate. Determine exactly what your goal is, how long would you like to keep the property and how much would you like to sell it for afterwards. Most importantly, think about all the worst case scenarios that might happen and have a good backup plan.
2. Thinking in a hurry - If someone wants to sell you something suspiciously fast, it’s never a good idea to allow yourself get pushed in the corner and give in. Making such a big purchase without all the necessary information collected beforehand is just plainly stupid. Get a good buyers agent and make sure every agreement is written down.
3. Quality over location - An older or inferior property located in a good neighbourhood is usually better than a palace in the middle of nowhere. This is a mistake that a lot of investors make, when they don't do the research and end up with an expensive home in a bad location which they have trouble selling afterward.
4. The bubble - The ratio between properties available for rent vs. properties where the owners actually live is a crucial one. If the market is full of homes for rent, you might have a hard time later on when the prices fall, especially if you bought the property from a mortgage. Just because a location is hot at the moment, don't believe the hype too much.
5. Steep price rising - If you don't catch the wave immediately, it's likely that things will turn. In the best case, the growth will be less rapid. It's good to consult with a professional real estate market specialist. Ask your real estate agent for recommendations.
6. Non-uniqueness - Focus on properties which are a bit unique. Think - what makes this special? Why would I want to live here? If the home is unique, it will not only sell fast, but for a lot more as well.
7. Relying on one source - Never, ever rely on just one source of information. Ask more real estate agents about their opinion, ask more home inspectors, lawyers and do your own research.
8. Not much history available - If you ought to be truly successful, you need to know the history of the home and the neighbourhoods as well. Find out what kind of people are likely to look for a home in that area and adjust your buying decisions accordingly. You want to sell your house, so find out who should you target and whether it's the right place for it.
9. Unclear legal status - Many people forget to actually check the legal status of the home properly. Many things could resurface later when you've already paid. Make sure you look into title insurance and talk to your lawyer.