Avoid Potential Real Estate Mistakes

30 Jun

Avoid Potential Real Estate Mistakes

Real estate investing can be fun and profitable if you know how to do it the right way. On the other hand, it can be frustrating and an investment of a lot of time and money without much reward if you don’t know what to do and which mistakes to avoid.

Here are some things you can do to help steer clear of potential real estate mistakes:

  1. Purchase property in locations where prices are steady or on the rise. If you purchase properties based on their low prices alone, but do not consider the overall value of the area in which they reside, you can end up losing money when prices either go down or never increase enough for you to make a profit.  Follow growth trends.
  2. Don’t sign paperwork that you don’t understand just because you’re excited.  It is important that you ask questions and fully comprehend how the property will affect you financially. You might end up paying more money than you would like to if you don’t pay attention to the nuances of documents.
  3. Don’t purchase a property before doing inspections. A lot of times, a property may look find from the outside, but there can be a lot of expensive structural problems that need to be fixed. There might also be health hazards, such as mold or asbestos. Make sure to ask a professional plumber and electrician to inspect the home thoroughly. Also have a formal inspection done to address other areas of the home, such as the foundation.
  4. Make sure that if you have to get a mortgage loan, it is one that you can afford to pay back every month. The financing terms should be something that you are comfortable paying. Even though you may have plans to resell a house quickly, nothing is guaranteed, so you can’t buy a property that is more expensive than you can afford with the thought process of, “I won’t have to pay for it for long.” Only buy what you can afford now.

Jennifer Fields
Oklahoma City & Edmond Real Estate Agent
405.330.0031

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