Things Young Couples Should Consider Before Buying Property

Buying property for the first time can be very daunting. The pressure to get it right might be a little too much, that one might want to give up and go with the first house they see. They might end up spending a fortune on the property which is an investment and ends up not liking it in the future. The good news is other people have gone through the same challenges and with the following tips recommended by property owners, you can go through the process and skip the hassles of making bad decisions.

The first thing is to consider whether you are ready to own property. Ownership an expensive affair and a lot of thought have to go into it. When something unexpected happens in the house, like damaged plumbing or a leaky roof you might have to shoulder the costs and this could be expensive. Other costs like time and effort that go into a home. Figure out if you are ready to pay the price for home ownership.

The next thing is to consider what kind of property you want? There are quite a few choices when purchasing the property. You can get a townhouse or condominiums or the more traditional single family home. Carefully consider what type of home you want and make a choice.

The next step is to figure out what you feel your ideal home must have. Be a little flexible, though, but it’s important to know what you cannot live without in a house. It could be a pool or a huge bathroom depending on what you need. This might be one of your first big purchases so make it count.

Now that you know what you need from a home figure out how much you need to borrow or how much you have saved up. Lenders may be willing to give you less, or the money you have might not be enough to get you the property you want. Sometimes the opposite can happen, and you’re good for a lot more than you need for a home. Figure out how much the monthly payments would be and additional costs like property taxes and insurance. These small costs inflate home ownership in the long run.

After careful consideration of your finances, the next step is to find a home; you can do this by using a real estate agent or by searching for houses for sale by yourself. This could include driving around your preferred neighborhood looking for a for sale sign, or you could use word of mouth. Ask your friends and contacts if they know a house that is for sale in your preferred area. A real estate agent is easier but that raises the costs, so consider that too.

When you settle on a piece of property, do a thorough home inspection. This means to check the roof, the plumbing, the floors, the basement and when you find an area with a problem, look into it. Do not take it at surface value figure out if the problem is something that could potentially be harmful or is easy to fix. Thorough home inspections could save you a lot of time and money in the future.
Landscaping is a big deal; it’s the first thing that probably attracts you to a house. When purchasing property takes this into consideration. The resale value could go up or down depending on how good, or bad the landscaping is.

Regularly maintain your home after purchase. It is probably one of the biggest investments you will make and maintenance decreases repair costs as repairs are done when they are still manageable.

An Overview Of Traditional Sales VS Short Sales VS Foreclosures

If you have ever purchased a property before, you are probably aware of how a traditional sale goes through. It can go through an owner, or it will go through a realtor, where proper paperwork is filed with the transaction reaching its completion at escrow. However, there are a couple of other ways that people can purchase properties other than finding them on listings in the paper or online. There are foreclosures that people can purchase, as well as doing what are called short sales. Let’s take a look at the differences between these three different ways by which property can be purchased.

Traditional Sales In Real Estate

In a traditional sale of a piece of property, this will go through the standard procedures. There will be a property owner that is selling it. There will be a buyer that will pay cash or take out a mortgage for the property. The transaction will occur at escrow where money is distributed to the owner and any lenders associated with that home. The new homeowner will then take possession of that property and may be responsible for a mortgage through a bank. This is how it traditionally works. However, it is possible also to purchase houses that have gone through a foreclosure.

Foreclosures In Real Estate

If you are going to purchase a property that is in foreclosure, this is typically a home where the owner is not able to make their payments. When this occurs, they can lose the property, allowing the bank to take possession of the property and eventually sell it to recover their losses. These properties are sometimes very popular with investors because of the great discounts that they can get. The bank simply wants to get their money back on the loan that they are owed, and there could be a substantial amount of equity built up in these homes that are sold at foreclosure sales.

Short Sales In Real Estate

Short sales are similar to foreclosures in that the owner is unable to make payments. This may be the result of a flexible premium mortgage where the interest rates have gone up significantly. It may also be that the home has suddenly diminished in value due to a market drop, and the payments they are making are much more than the property is worth. Unlike a foreclosure where the lender is selling the property, the homeowner is doing this. They are simply trying to find a buyer that can pay off the mortgage and allow them to walk away. This can help the owner avoid a foreclosure, and is the last course of action that people in this situation will take before a foreclosure occurring.

Which Ones Are The Best Investment?

From the perspective of an investor that has the money to invest, it’s a simple matter of paying off the lender that is owed. Their only concern is the value of the property as it stands right now in comparison to how much the loan amount was that they had just paid off. For example, if there was a $200,000 mortgage on a property that is valued at $250,000, the investor can make $50,000 by flipping the property on their own or through a realtor. This is the type of deal that most real estate investors make, and many can be made through foreclosures and short sales.

If you do have the money to invest in real estate, it’s worth looking into. This does not mean that you cannot find good deals with traditional sales of real estate. However, some of the best deals that can be made are through short sales and foreclosures. If you can invest money in this way, and you can find someone to help you find the properties, and process all of the paperwork, this might be one of the best ways for you to invest your money.