TIP #1: Be Practical and Realistic
“Wants” and “Needs” are very different when is comes to real estate features.
If every home you see has the upgrades you “want” but exceeds the price range that you “need”… be practical and realistic.
Who wouldn’t love a large, oceanfront, professionally decorated home or condominium, with all the bells and whistles?
Looking at properties that exceed your price range is always fun, but it can be extremely frustrating and upsetting.
Be realistic by looking at listings in the price range you “need”, keeping an eye out for that special property that has the potential to evolve into the dream home you “want”. Always look beyond the furnishings, wallpaper, and floor coverings to the architecture of the home; it is then that you will find properties with potential.
TIP #2: Use Contract Contingencies Wisely
Contingencies in a contract for the purchase of a property are designed to protect you, the buyer.
This may seem silly to mention but it’s important to remember that you need to work with the seller to come to an agreed upon contract.
Valid contingencies to an offer are expected by the seller.
Common contingencies include building inspections, termite and pest inspections, financing, and surveys.
Many deals fall apart over small details, and easy to fix issues.
Remember that sellers are emotional about their property. If you can see that major repairs or replacements need to be made due to neglect or age, make allowances for this in your offering price.
The old adage “Everything is negotiable” still holds true, unless you upset the seller so much that they refuse to work with you.
Try to avoid listing cosmetic changes you would like the seller to make as contingencies. Cosmetic changes are subjective, be objective when writing a contract.
TIP #3: Understand Regional Health and Safety Issues
An informed realtor will help you understand other health and safety issues that should be considered when purchasing a property.
Safety and Health topics can include indoor air quality, mold, radon, and lead paint. Many of these require the seller to sign a disclosure statement, while others may not apply due to the age, type of construction, or location of the property being purchased.
TIP #4: Ask for Information
When you have contacted a realtor to work for you, ask him for information. Do you want to look at all the properties in your price range, with the features you need, or just the houses a realtor wants you to see? You deserve all the information you need to make an educated decision.
Can you imagine buying the home that you felt was good for your family, only to find that you never received information on a similar property that is perfect for all your needs? I provide many services to insure my buyers always have information at their fingertips.
TIP # 5. Be aware of economic and political stability of your specific location.
The area may appear to be stable or progressive but the presence of only one Company monopolizing the industry of the area may cause a risk of sudden economic plunge and will have a damaging impact of the real estate industry in the area.
A Japanese Company for example in Compostela Cebu is the single biggest company monopolizing industrialization and employment of manpower in the area.
In times of crisis or when the Company decides to down size or worse, shut down, the domino effect on the real estate industry in the area can be catastrophic.
Many workers who are renters can no longer afford to rent; others who have houses on mortgage can be delinquent in payments until their mortgaged homes are foreclosed.
The area has the right balance of financial resources of residents appear to be more stable.
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