Thursday, December 14, 2017

Careful, These Property Buying Pitfalls Have A Long Drop

Buying property is going to be one of the most important and perhaps the biggest financial decisions of your life. You’re going to be spending hundreds of thousands in cash on the property, so you need to make sure that you do take this decision seriously. It’s important that you take the right steps and avoid any serious mistakes. There are quite a few to avoid. The problem is that if you make a mistake buying property, it doesn’t go away. It sticks with you because the purchase is so large that any issue just carries over and can haunt you for years. So, let’s look at some of the possible pitfalls and make sure you don’t fall down them.

Not Bothering To Use A Mortgage Broker

This is a massive mistake and to understand why we first need to know exactly what
a mortgage broker is. A mortgage broker is an expert liaison on the property market.
They will rub shoulders and shake hands with all the key lenders on the market.

So, when you go to a lender, they might offer you a certain set of dealers, but the
mortgage broker will be able to access an entirely different rota of possibilities. They
can then present them to you, ensuring that you get the best deal on the market.

As well as this, when you use a mortgage broker, you have an expert on your team. You
have someone that will start you off with a great deal and then work on it, even more,
trimming the little issues off so to speak until you have the perfect mortgage package
that provides you with the best advantage financially buying property. Indeed, a
company like Brighter Finance will give you advice and expertise that will put you
at an advantage when compared to all the other buyers on the market. Of course,
getting the right mortgage is only part of the property buying game.

Not Getting A Survey

You should always get a survey when you’re buying property. You might find that a
seller recommends that you don’t because they are looking for a super fast sale. Instead,
they want the sale to go through in a matter of weeks.

Brilliant - you say - knowing full well that this limits the chance of another buyer
swooping in with an offer on the home. But this is a common tactic that sellers
use when they know a serious issue could show up on a survey that will massively
weaken the value of the home.

For instance, you might want to arrange a survey of an older home, and the buyer
may agree with one tiny little amendment. They forbid the surveyor to drill any holes
in the wall. You probably think that sounds reasonable. After all, if you don’t go through with
the purchase, you can see why they wouldn’t want damage to the property.

Wait though because the surveyor assures you that the holes would be tiny and barely noticeable and really not worth worrying about.

You run it past the seller, but their decision is final. Huh? A little research will
tell you that drilling holes is the only real way you can check for asbestos.
So if no holes are drilled a surveyor can’t confirm or deny the existence of asbestos in the property. You should see now why surveys are essential. If you don’t
arrange one, you never really know what you’re buying. While they are less
important for new builds, they are still worth completing. A survey will tell you about
the quality of the build and whether it’s worth the asking price.

Missing The Haggle

‘The Asking Price Is Final.’ How many times have you seen that in a home advertisement?
This does not mean that you shouldn’t haggle a little. Usually, in cases like this if you
enquire they’ll tell you that they have had a few interested parties.

An easy rule for this is to divide whatever number they give by three. So, if they say, they have had three other people view their property,
it’s probably just one or even none. Home buyers always aim to suggest there’s more interest because
that makes their property a more valuable asset.

So don’t be fooled by the ‘there’s a lot of interest’ line. When you make an
offer give them a number that you can afford and that you deem to be fair. They might come back and
say they’ll only sell for more, so try again, this time at a higher price.
Remember the agent has to present any offer to the seller. So, while it is in your best interest to choose an offer deemed appropriate whatever
you say will be accepted as an offer.
As such, there’s really no reason no to haggle a little and aim for the best price.
The best tip we can offer about haggling is to start at a reasonable point and go
from there.

Failing To Ask Questions

Here’s a little fact about buying real estate. Legally, homeowners and agents don’t
have to disclose any information about the property unless you ask them about it directly.
So, you might be buying an old house where an elderly person once lived.
Perhaps you’re bothered about the possibility that they died there. Don’t assume for a
moment that a seller will tell you this unless you ask them outright. The same
is true for any issues with the home. Unless you ask them, they are not under a
legal requirement to tell you anything.

Saving A Low Amount

Last but not least, you need to make sure you are saving as much money as possible
to buy your home.
If you don’t do this, even the help of a mortgage broker won’t grant you access to the
best deals buying the home. So, make sure that you aim to save
twenty percent of the asking price of the home. That way, you won’t find that
repayments are unmanageable a few years down the line.  

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