Whether you are buying or selling a property, having some good real estate knowledge is essential to being able to navigate the real estate market like a pro.
Here are some top 5 tips from real estate professionals to help you:
1. Location, Location, Location
Every real estate pro will tell you that property value is all about the location. Choosing the best location that you can afford when first buying a property is essential to ensuring the greatest appreciation in value.
Often, purchasing a smaller home that is not in the greatest shape is far more valuable than buying a large house on a street that is not located in the best neighbourhood.
If you already own a property that is not located in the best area, look at property trends that may change the value of the house in the future before offloading it. If a new mall, school or other feature is being planned near your location, it could increase the value.
2. The Face Value
Buyers are often attracted to properties that have greater face value than actual value. In other words, the more aesthetically pleasing a property, the more interest you are likely to attract and the higher the offers will be.
On the other hand, if you’re a first time home owner are looking to purchase a property, it is important to look beyond the face value. A house that has just received a fresh lick of pain or has been newly renovated may look great but could have some underlying problems such as damp, electrical or plumbing issues.
Always make sure that you can provide or receive all the necessary inspection certifications so that you can have the peace of mind that a property is in reality as good as it appears.
3. The Time Challenge
Be aware that selling or buying a property takes time. Whether you choose to privately place your property on the market or use an agent, it is unlikely that you will get an immediate offer in the price range that you are looking for.
But real estate purchases are investments and therefore should take time to ensure that you are getting the best value for your money. Make sure that you do not sell or buy in a hurry so that have the time to consider all your options and get the best return on your investment in the long run.
However, there does come a time when you may need to lower your expectations or compromise on your list of requirements for a property. If your house has been on the market for over 6 months with little or no interest, you may need to drop your asking price. If you can’t seem to find just the right home to meet your needs, you may need to compromise on location or some of the features that you want.
4. The Real Estate Transaction
It is very rare that you or a buyer will be able to provide a cash offer for a property in order for a real estate transaction to be completed quickly. Most of the time, purchases rely on the approval of a home loan or mortgage bond. Approval can take some time so it is important to be patient during this process.
In fact, most home buyers are not only reliant on the approval process but also on the sale of a property that they already own. This can make the transaction process even more lengthy and complicated.
It is also important to be aware of the different transfer costs, duties and other fees that each party will be responsible for in a real estate transaction. You don’t want to be hit with expenses that you did not expect at the last minute that could mean the end of purchase process.
5. A Real Estate Agent
Using the services of a real estate agent or reliable mortgage broker provides a wide range of benefits but will come at a cost. Normally, the estate agent takes a percentage of the purchase prices as a commission to provide you with their professional services.
Both the seller and buyer will be affected by the rate charged by the agent. The seller will need to pay this amount out of the profit from the sale and the buyer could be paying more for the property if the commission has been worked into the purchase price.
At the end of the day, both sellers and buyers need to evaluate the value they receive from an estate agent versus the amount that they will be paying for the services. In most cases, the value of using an estate agent is in the knowledge they have of the market as well as the greater amount of potential buyers that they have access to.