Unit 10/202-220 Ferntree Gully Road, Notting Hill, Melbourne, VIC 3168, Australia
“Never judge a book by it’s cover.” Similarly, do not shell out all your hard earned money on a home just because it looks good on the outside. It sounds very obvious doesn’t it? You would not take such a drastic step. But, believe it or not the fact is that 90% of home buyers base their purchasing decisions on emotion while only 10% base it on logic. This is more true in the case of first time home buyers who are out in the real estate market looking for their sanctuary.
So, if you are interested in buying property, which is a great way to build long term wealth, also remember that it is big decision that requires you to consider various factors before taking the final plunge.
With time you will learn to spot the difference between a good property and a bad one. However, there are several signs that you can look for right now that will help you identify the drawbacks without you having to lose out in the deal during the process.
Some of the flaws, like outdated appliances and misguided paint choices, however, there are other property downfalls that prove to be true deal breakers. So, here are 5 red flags that can tell you quickly whether a deal will be a time-waster. If any one of these five potential signs match on the property that you are viewing, then move on to the next potential property.
If the property that you are looking at has been on the market for a long time, and the the seller refuses to budge on a rather high price for it then that is a red flag. “How long has the property been on the market?” It sounds like a basic question, doesn’t it? But, many investors forget to check the marketing history of a home, to ascertain if it’s failed at an auction, been listed with other agencies, or is simply difficult to sell. The bottom line here is that you expect to make money from your investment in any property you buy and not shell your pockets out instead. This factor is a sign that you should walk out and move on to a better investment.
You have liked a property and now you want to get an inspection done prior to signing the deal. However, the sellers are not able to agree with any inspection time given by you despite your best efforts and flexibility. Do you hear an alarm ticking off in your head? Well, you are right, there is something amiss. No matter how well behaved or good the sellers might be, not being able to book an inspection is a deal breaker. Move on.
Why invest in a property?
The answer is- to make substantial profit out of it in a short space of time. When you are out there purchasing the home of your dreams or an investment for the long term, always remember not to waste your time or money buying one that is located in a poor or declining area. If a property does not have street appeal then it is a major warning sign. Once a neighborhood is stamped as troubled or bad, it becomes difficult for it to earn a reputation, thus affecting the resale value of the house in the long run. The best way to avoid running into one is by doing your research well.
A property may look good on paper, the numbers might even be real and they all seem to add up. However, until a site visit is done, we do not see the true picture. A property in decline or one that has been neglected for far too long might cause more problems than what it’s worth especially if you expect to make a profit. You would be spending most of your time looking after the maintenance rather than enjoying your time in the new home.
One of the crucial factors for any investor or home buyer, when buying a house is looking at the history of a property and the last time when it was sold. If a home has been sold multiple times in a short time period, then it comes across as a critical warning sign.
Homes that are on the market for longer than the standard days for a particular location and homes with multiple agents, trying to sell the same property for a long time should also raise red flags. If you happen to notice these irregular features, you should be asking questions, trying to determine the reasons behind it.
The first rule when buying a home, or upgrading it, is to use your head instead of your heart. You need a way of quickly, objectively,m and thoroughly checking properties that you inspect for signs of existing problems and also signs that problem may occur down the track.
The initial appraisal can be done by you, however, later if you are serious about really buying the home, then have it checked by the experts. A good way to conduct your inspection is to divide the prospective property into three areas – the exterior, the interiors, and the surrounding neighborhood and its structures.
Every home seller does not hide the problems about their homes to potential homebuyers. But it’s always better to be safe than sorry. So, before putting down the final deposit, look out for red flags during your home tours or viewings.