Always Conduct Your Own Research When Buying a Home!
The majority of properties for sale almost always look amazing on paper. While great investment deals are definitely possible to obtain, a deal that sounds too good to be true usually is. There are risks that accompany each deal and as a result, amateur and seasoned investors should take these calculated risks into consideration instead failing to see the strings attached. Always take matters into your own hands and conduct an inspection instead of blindly following the property description prepared by someone else.
Sellers have a vested interest in making their property as appealing as possible so that it sells at a good price in a timely manner, and I don’t blame them! However, conducting your own due diligence is a must as many sellers succeed in enticing buyers based solely upon their home description. While property descriptions may contain a lot of truths and facts, you should never rely on it as the home’s only source of information. Instead, use the description merely as a starting point. Property description by someone else may depict a calm, peaceful and enticing neighborhood but this might not be the real picture. Therefore, you can hop in your car and drive the surrounding areas on your own or speak to people in the neighborhood to find out if it is a good choice for you to invest in or not.
Always assume that a lot of repairs are required for homes that read, “TLC” or “Handyman Special”. While the estimated amount for these types of renovation may be referenced on the property listing, you should always walk through the property and create your own estimates to ensure that you’ve budgeted properly. This applies to sales comps potential rental income as the seller’s real estate agent has access to the good, bad and the other so you want to ensure you have a complete picture of what the market in your desired neighborhood looks like.
There is always a level of risk associated with purchasing a new home. However, these risks can be minimized by taking the time to research the area yourself as opposed to relying on others to feed you information.