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How to Avoid Costly Mistakes When Buying Property

Posted by on Sep 29, 2015

mistakes to avoid when buying property

Buying a property may be one of the most exhilarating experiences. In the end, for almost all of us, a house is significantly more than simply a shelter – it’s where fantasies and memories are made. At exactly the same time, substantial investment is involved by buying a property and there are several potentially costly mistakes, which homebuyers should avoid. Here is a short overview from an estate agent in Crewe of six of the most common home buying mistakes and what to do to avoid them.

Blunder #1: Working With Multiple Real Estate Agents

Many home buyers make the classic error of working with multiple real estate agents and ending up not having a trustworthy association which have any of these. In the event you are purchasing a house, generally your broker’s fee is paid by the Seller as their commissions were split by Listing Brokers with Buyers’ brokers. Thatis a real bargain for buyers – they get a professional representation at no cost to them. An excellent Purchaser’s Broker will offer help that is priceless not only with finding the property that is correct, but also with negotiating the very best deal and directing you through the purchase transaction procedure, which is often both complex and confusing.

Blunder #2: Not Being Pre-Approved for Home Funding

Not being pre-approved for mortgage lending is just another common error. You should know how much home you meet the requirements for, but also your Loan Officer should help you with figuring out your purchasing budget, estimating the closing costs, in addition to your down payment and monthly payments. Your lender allow you to choose the one which is most beneficial for your personal scenario as well as should definitely describe various mortgage programs available for you. Being pre-approved is like shopping with money when it comes to negotiating the most effective purchase price and terms and composing offers, plus it provides you with a major edge. Sellers don’t take very seriously buyers who aren’t Pre-approved for funding.

Blunder #3: Choosing the Wrong Type of Mortgage

Typically the most popular kind of home mortgage in the USA is a 30-year Fixed Rate Loan. Generally 30-year Fixed Mortgages have the greatest interest rates and are lucrative for lenders. An improved approach would be to customize the mortgage term to your anticipated amount of homeownership. A fixed rate period of your loan could be 7 5, 10, 15 or 30 years. Typically the shorter the period, the lower the interest rate and interest cost over the life of the loan. The right term of your loan can literally save thousands of dollars in interest fees.

Blunder¬†#4: Not Having Your Own “Home Buying Dream Team”

Buying real estate involves large sums of money and is not simple, so it is critically important to get a team of trustworthy professionals who will help you with all the trade. After choosing your realtor and getting Pre-Approved with all the lender, you as well as your agent should start assembling your own “House Buying Dream Team.” In case your future home will need repairs or enhancements, you will need an architect, interior designer, and a contractor.

Except for new construction, most dwellings can be purchased in “as is” condition. In several States, including Hawaii or California, Sellers have statutory responsibility to disclose any known material facts regarding the property. Nonetheless, Buyers remain in charge of running their very own due diligence to ascertain the state of the home they’re buying. Professional reviews price money, however they could be life-saving in preventing costly surprises following the close of escrow.

Blunder #5: Being a Impatient Home Buyer

The housing market is heating up and multiple offers are typical. When there are far more Buyers than homes for sale in almost any specific market, it’s called a “Seller’s Market.” In the markets of seller Buyers often get frustrated since they get outbid by other buyers and can be composing multiple offerings. The natural reaction would be to run to write a lot more offers. A better approach would be to follow these measures:

1. Clearly identify your property purchasing needs

2. Focus your house search only on properties and communities you like

3. Ask your realtor to set you up on an automatic home search and notification system

4. Work with your agent and create a process to instantly preview, appraise, and bid on homes which meet your standards

In conclusion, in this short article we analyzed a few of the most common home buying mistakes and the best way to avoid them. The mistakes reviewed were:

1. Working with multiple real estate agents

2. Not being pre-approved for house lending

3. Choosing the incorrect kind of mortgage

4. Not having your own “House Buying Dream Team”

5. Not conducting professional home inspections

6. Being an impatient home buyer.

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10 Ways To Become A Property Millionaire

Posted by on Sep 18, 2015


Did you know that your real estate business can drive you to success and make you one of the few millionaires in the world today? If you never knew this, here are good news since this article is intended to guide you towards that path by giving you simple and precise ways on how you can become a property millionaire without much hassle or straining your budget. Therefore, here are 10 ways to become a property millionaire;

1. Focus on investing in flats rather than houses

According to a letting agents in Stoke on Trent, by investing in flats you will generate a higher return as compared to that investor who puts his/her money on house investments. Flats are very convenient for the buy-to-let investment than houses since it allows you to adjust the rooms according to your budget and could house many people hence high returns due to is high flexibility.

2. Learn to be patient

Patience is directly congruent to success. So, you should take your time to assess the investment before rushing to any decisions that would adversely affect your property investment. You should try to consult as much as you can to make sure that every step you take is for the good of the investment. Property experts advise that you should never put yourself in a frustrating position that you could be forced to sell your property.

3. Be tax-efficient always

You should always utilize any available platform that can help you keep your tax bill low. To become a property millionaire, you should never allow the taxman to charge more than what you are expected to. Furthermore, you should aim at maximizing savings from the items that are deductible from tax such as the property furnishings.

4. Always aim at adding value

Adding value is one of the most practical ways to make money out of your property. Therefore, you should always keep improving by buying more lucrative property with higher returns than the one you already own.

5. Partner with reputed professionals that you can trust


You should consider picking highly qualified people to help you in building your property portfolio. These people will play a major role in showing you the right direction in the property field and also help you make the best decisions as and when you have to. You could consider working with an accountant and a lawyer who will direct you on how to handle any complex issues as your aim at profit maximization.

6. Spread risk by diversification

Do not rely on a single property investment since it could lead you to financial turbulence in case of any failure. Therefore, you should aim at diversifying your property investment so as to ensure the long-term goals of the investment are met without many difficulties that could otherwise be realized when you rely on single gamble.

7. Seek vast local knowledge

By having sufficient information about the property`s surroundings such as schools or health facilities, you will be able to know the kind of service that the locals need hence fill that gap by providing the service in your property.

mortgage icon8. Always take advantage of low mortgage rates

It should be your goal always to invest in the vibrant and the up-and-coming cities in your country. Often, in such cities the mortgages are still low hence will give you the chance to largely invest by spending relatively low amounts.

9. Consider employing professional as tenants

With well-chosen tenants, you will achieve high capital gains since they will enable you to convert a single-occupancy property to a multiple occupation with minimal cost and plenty to save.

10. Do not put your trust on estate agents` estimates of rental yields

Rather than relying on the unrealistic yield estimates, you should conduct an independent research to find the true value. You could even consider seeking advice of from professionals who have a vast knowledge and experience in the property business.

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