Purchasing a home can be one of the largest purchases you will make in your life, and you want to make sure that you are getting the best deal you can on your home. If you do not take some time to research beforehand, you may end up with a real estate investment that is more trouble than it is worth. You have to know what you are looking for when you are looking for it, and who you are looking for when you are searching for it.
Always use local realtors for assistance
You should always use local realtors to assist you in buying any home, but there are several other items you should be aware of as you become an expert in real estate investing.
Research has shown that the number one real estate scam is not a real estate agent, but rather the seller. The seller of the home will try to convince the potential buyer that they have made a great choice and will be perfect for them. They may offer many incentives such as low closing costs and financing options that are totally unnecessary. There is a reason that real estate agents have to pay a yearly fee and have to pass an exam, it is because they are licensed professionals who understand how the market works.
Research the potential homes
Buyer beware: Real estate scams start long before you make an offer on a home. Be sure that you have researched the potential homes you are interested in thoroughly. Make a list of homes you like and call real estate agents in your area. Ask if they know anyone who was recently sold a home that was similar to the property you are interested in. This can give you some idea of how certain properties are currently priced. If you are planning to use a broker or real estate agent make sure to check their background carefully, some brokers have past scandals that will come out in the news.
Contact several brokers and agents
Once you have your list of homes that you like and have contacted several brokers and agents you may need to do some follow-up. Have they had any offers on the homes that you like? What is the response rate like? You may have been able to negotiate a much better price or terms for your contract. Remember that while real estate transactions can be complicated there are many things that the seller will tell you to get you to take action.
Read the contract thoroughly
Buyer beware: When you purchase a property it is important to remember the most important thing, that is, to read the contract thoroughly. Make sure that all aspects of the contract are legal and that you understand what is required of you. This is very important because a seller may try to change some aspects of the contract after you have purchased the property. While this is frustrating it is not illegal and it is perfectly normal. As a buyer, it is very important to fully understand the rules and regulations that apply to purchasing real estate. Make sure that you understand everything including hidden fees, and closing costs, and any legal obligations of the seller.
Don’t sign anything before understanding what it says
Buyer Beware: Another way to protect yourself from falling prey to real estate scams is to make sure that you don’t sign anything before understanding what it says. Many times people will find out after the fact that they have been tricked into signing something that they did not understand. To avoid this, when you contact the seller to be sure to ask questions and if you are in a hurry, take time to review the contract before you sign. If a seller attempts to rush you into signing, you can file complaints with the Better Business Bureau or the Office of the Comptroller of the Currency. In either case, you will need to follow up on any concerns that arise.
Do your homework before making your offer
Buyer Beware: One more way to protect yourself from getting cheated by real estate agents is to do your homework before making your offer. It is also wise to find out about the background of the agent who will be showing you the property you wish to buy. Doing a comprehensive search on them and on the real estate market that they represent is always advisable.
Avoid being cheated out of your money
Buyer Beware: There are many other ways to protect yourself from becoming a victim of real estate scams. Although buying real estate is a lot easier than most people think, there are still dangers lurking just around the corner. By taking the necessary precautions and protecting yourself, you should be able to avoid being cheated out of your money.
