What to Consider Before Buying a Property ?

Property finances

When thinking about our future as children or even trying to imagine what it would be when we settle down in life, the first thing that comes to mind is to buy our own house. This is a big deal for everyone, our first home. After that, as we keep on doing well in life, am I going to buy more properties insider investments, second homes, offices, workshops etc.

Be it in any part of the world, buying a home is not easy. Whether you live in the high priced cities of New York and Silicon Valley or in a small town in in Wyoming, buying a house or any property for that matter is a big deal. Every country and every region on earth has its own set of laws, procedures and price caps. Hence it is important to know certain things before before actually buying any property. This list will help you understand the essentials:

  • Sellers background: You could be buying the property either directly from the developer or the owner of the property. In case of the former, gather information regarding the developer’s previous projects, reputation, built quality and pricing. In case of the latter, make sure that the seller has a good credit history and has kept the property clean without any major incidences.
  • Property background: It is also important to gain information about property itself and the locality. This will help you get an idea of in general what kind of people live around, pricing of the area (for a better negotiating power) and if any specific incidences have happened in or around the property. This can be done by talking to people living around or anyone who has knowledge about the locality.
  • Legal check: Before you make the final payment, make sure the seller has all the legal documents needed. It can be the occupational certificate (if its a newly developed building), correct name transfer papers with the re-seller or any other legal documents that are or will be required in the future. You wouldn’t want to get into trouble in the future.
  • Check your finances: It is very common to exceed your budget, provided you have one, while buying a property, simply because you like it more or it suits your requirements. Hence it is important to make sure you can afford the property. If not, check the list further available banks at the location, where you can get a loan from.
  • Analyze your needs: This is very common even if you go for shopping in general, get carried away by what you see. However, while making major financial decisions always keep your calm and analyze your needs first. Why do I want to buy the property? Is it an investment? Is the house I want to live in? Is it a second home? For my office? How often well I be using this property? Is it long term or short term? What is my budget? Etc. Make sure you answer these questions first.
  • Outside connectivity: This is especially necessary if you want to buy a house you plan to live in. Check how much connectivity it has with the main roads, public transport (whether there is a bus stop or railway station nearby), are there grocery stores, medical stores another essentials close to the house, are there any good schools in the locality ( this is in case you have for a planning to have children in the near future) and do you have any friends or family around ( this may not be a priority for many but it is important keep in mind).
  • Future: You may or may not be planning to sell the property in the near future, but it is always advisable to look at the area, its past property appreciation history and any estimation for the future. This is especially helpful if you are planning to resell the property in the short term.

After having checked all the basics on the list above, contact the right Realtor, someone you can trust, and go hunt for your next property. It may be your first home, your dream house, for work or even if only for investment, make sure leave no loophole before signing the contract. Small or big buying a property costs a lot of money, a lot and you don’t want to leave room for any mistakes in that kind of an investment.

About Jennifer Cribsly

I'm a former real estate broker who specialized in helping first time buyers be able to purchase a home. Now full time mom, part time real estate owner/investor.
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