Things to know before buying a property
Things to know before buying a property
5 Things to know before buying a property
Money is made when you buy
Nowadays people with money think that they will buy a house with their money then after doing some renovations on it they will sell it to someone with a good profit margin and earn a good amount of money, which is completely childish to think about. On the other hand, the most experienced people in this field say that money is only earned when you buy a house. Because the most important thing before buying a house is not the amount it costs but the quality of the house or in which condition it is.
Most of the people in this business buy expensive houses because they think that the more expensive the property is, the more profit it will make for us, During thinking that they forget everything and buy an expensive old house which needs lots of renovation. So a good amount of money is spent on the renovation, which leads to an effect on the amount of profit and in some cases even makes the profit zero. This type of mistake is only made at the time of buy but not at selling.
Get an inspection of the property
Before paying for the house complete an inspection of the property. By doing so you will know about all the errors present in the house. This step is really important, imagine if you unsee an error while buying a house and after buying, it becomes a huge problem for you and costs you thousands of dollars to renovate. By spending just a couple hundred dollars to inspect the house will surely save thousands after you buy it. Nowadays there are so many agencies which work at really low rates to inspect a house, so, paying them a couple of hundred dollars would be a good investment too.
Don’t do the work by yourself
Instead of doing all the stuff by yourself get a contractor or several subcontractors who will do all the work more quickly and professionally. This is also really important. Let me tell you about my friend’s story. He bought a house for the same purpose as you. He had a construction background so he thought that instead of giving the house to a contractor he and his brother should renovate the house by themselves.
In that way, they could save a couple of thousand dollars. But this was a really bad decision. It took them 4 months to complete the whole house. If they would have given this task to a contractor it would’ve taken him just 3 weeks to complete. And in that time they could’ve looked for another deal. This is how you get rich in real estate.
Place the property 1 to 2 percent below the market value
Quick and steady is the most important key in the real estate business. Always try to buy and sell the property as quickly as possible so that you can move to the next house and earn more. And always remember the higher the price tag you put on the property the longer it would take to sell. Let’s consider that you buy a house and put some work on it, and then for the sake of earning some more money you place a price tag on it which is way higher than the budget of people living in that area.
Then you will end up keeping the property for at least 6 months, in this circumstance you are losing money because in this business time is the most important thing. What if in these 6 months you would’ve worked on a couple of more projects and earned more. Get the house on the market at a price that will blow the competition away and you can sell the property no matter what the market condition is. This method has helped a lot of people selling their properties as quickly as possible.
Use a real estate agent
Don’t try to sell the property on your own. This will take a lot of your time in which you can work on other projects. Get the help of a real estate agent because by doing so you are not just saving time but also you would be relieved that your dealings are safe and nobody can do any sort of scam with you, Just stay in contact with your agent because these agents always have loads of clients with them, who are willing to buy houses for their families.