Follow these Simple Tips for Good Real Estate Investment

Posted by Alan on Jul 14, 2015 in Realty N You | Comments Off on Follow these Simple Tips for Good Real Estate Investment

Meet a Realtor

In the age of Craigslist and eBay, buyers might prefer to go online for their property purchase. However, it also makes sense to consult a good realtor in the area. Realtors in Florida are licensed by the state and pass a qualifying examination in order to be able to represent clients in property transactions. They can provide you with listing of real estate in Coconut Grove, Miami Beach, Key Biscayne, Coral Gables or other nearby locations in Miami, FL that fall within the customer’s budget and conduct viewings for them. The buyer also benefits from the realtor’s extensive knowledge of the area and prices at which sales are being closed in the location. In fact, some real estate assets like luxury properties are often never listed on the internet to preserve seller privacy and exclusivity. Instead, the sale is entrusted to realtors who specialize in the niche of high-end real estate. They can also suggest finance companies which can offer loans to fund the purchase. Once the sale price is agreed on, they carry out the legal formalities for clients such as the sale documents and necessary taxes and duties.

Fix Your Budget and Stick to It

Buyers should always know just how much they can afford to spend for a home. This can be calculated on the basis of their current and projected family income, expenses and vale of current assets. However they should also factor in whether they would be able to continue with the purchase even in case of a downturn in financial fortunes like a drop in income because of recession or job loss. This may sound ominous, but it shows how important strict budgeting is for buyers. By nature real estate is an illiquid investment because it cannot be monetized at will like cash or gold. So buyers should also look at the holding period of their investment to understand the likely profit they might make over a period of years. For sellers, it’s important to know the tentative prices in their locality and fix their asking prices accordingly.

Get Loan Approvals Done Before Buying

Buyers would do well to get a loan approval in place before proceeding on their property search. Lenders consider the financial health of the applicant by crunching factors like income, credit score and assets to indicate the loan amount they would be willing to pay. Sellers would also prefer to deal with buyers having pre-sanctioned loans because it reduces the time taken in concluding the sale. Pre-sanctioned loans are also a great tool for buyers to stick to their budget because overshooting it means an increased interest payment. The amount of interest paid can be lessened by having a larger down payment ready for the property.

Location Matters

All things considered, the prices of two somewhat equal properties fluctuate heavily depending on the location. A property in a residential area would be more valuable than one in an upcoming area. A commercial property suitable for a shop would be valuable in a shopping district but not in areas outside town limits. So location should be an important consideration for buyers when agreeing on a sale price. Investment could be a viable option in areas where sale prices are low currently but might improve over the medium term because of new developments and projects in the area. A plot of land would become immensely valuable if new residences and transportation options become available in the area. With real estate investment (http://www.wikihow.com/Start-a-Real-Estate-Investment-Club), a bit of foresight and tenacity to hold on for a sufficiently long period make all the difference in the amount of profit made.

Trust, but Verify

Buyers could feel that once they have their sights on a dream property, it’s necessary to close the deal as soon as possible. Often they could want to proceed on the sale without having a professional go through the title documents in detail or wait for a structural integrity report. Realtors advise clients to proceed decisively but with care in most cases. Specialized inspections should be done for the air conditioning, fountains and pools, fireplaces, kitchens and plumbing because of the possibility of damage requiring costly repairs. An inspection could throw up issues which reduce the viability of the sale. If there are sufficient red flags like health and structural problems, buyers should not hesitate to walk away from the deal. Alternately if the problems can be handled with a bit of home maintenance, buyers could get opportunities to further negotiate the price to their comfort.