Do You Really Want to Buy that House? Ask the Seller!
Driving by a house for sale may allow you to see its curb appeal, but there are other factors to consider as well. Clearly, the current property owners are selling for a reason. It could be to avoid foreclosure, it could be to move because of work demands, or any other number of reasons. You should find out what this reason is. It will give you some insight into why the property is priced at the range it is and what the history of the residence is. Once you understand the seller’s motivation, you can tailor your offer to meet those needs and be successful with the purchase.
The house’s original purchase price is also an important factor. This will tell you about the history of the equity growth and the rise and fall of the overall value of the location. If you know what to expect with your real estate values, then you can determine whether the home is going to be profitable in the future. Most of the time, anytime you own property, it’s a good thing, but the value of neighboring lots affects your bottom line too.
Any remaining balance on the home should be noted as well so you can figure this into your offer. Talk to the seller about how much is owed and whether or not they applied for any second mortgages. If they need to pay these off and want to cover that in the sale of the home, they won’t accept an offer that doesn’t include this amount. If you plan ahead like this, you can negotiate a lot more effectively no matter what your experience level is.
While the value of the neighboring properties are important, you should also consider the local element. Is there a high crime rate or incident claims to the police? This will affect whoever lives there, whether it’s you or a renter. If this goes on too often, you may end up being responsible for vandalism charges and noise complaints from the occupants.
Once you add up these factors, along with the process the seller used to come up with an asking price, you’ll be able to decide if you really found a good deal. It’s easy to make a house look pretty, but that can cover up a lot of other issues. Do some digging before you sign any papers, talk to the professionals and interview those actively involved. When you follow through with your responsibilities as a homebuyer, then your real estate deals with be more efficient and profitable all the way around.