Every buyer wants the dream property in his budget. In our previous blog, The 7 Key Steps Involved In Buying A Residential Property, we explained how to make it simpler and easier for you. Here we are going to take up what goes wrong when looking for that perfect home for yourself.
- Confusing the goals of an investor and a home buyer.
When you are looking for a home for yourself, there is a very strict criteria as discussed in this blog, The 7 Key Steps Involved In Buying A Residential Property. You have an IDEAL PROPERTY (What you feel will be an ideal property for your home with the things needed and wanted ideally) and you want to meet that standard. Anything different may not make any sense while buying a property. An investor, on the other hand, has a very different mindset and purpose of buying a property. He can buy anything that he will be able to buy at a profit. He can renovate, hold it for a few months or even years and he can even buy something that is not at all what he would live in, but something that can be sold at a profit. If you have successfully bought and sold homes earlier and also made a profit, congratulations. But when you are buying your dream home, your mindset has to change. You have to be willing to pay the MARKET PRICE and maybe even a bit more to just reach the standards you are looking for. An investor HAS TO BUY BELOW MARKET PRICE.
- Trying to get that MIRACULOUS DEAL your friend/ relative got, or so you heard.
There are some deals in the market that come as distressed and at lower prices than the market price. They go fast too. And one would consider himself lucky if one can get something like that. But again, if you have a strict criteria of what you want and have an IDEAL PROPERTY in mind, you cannot rely on finding all that in a distressed super cheap deal. Those are mostly bought by investors, who then find a person to whom such property suits. By all means, look at the ones available but do not look specifically at those deals only. Also as a word of caution, more often than not, the friends and relatives just boast that they got this or that, using lies to impress or just to imply that they are not really that rich but got lucky etc.
- Accepting Verbal Promises.
There are many verbal promises builders and brokers make. Now I am not saying that all builders and brokers are crooks, but SOME ARE! Whatever is agreed upon, get it put in writing. If they say “Don’t you trust me?” or “There has to be some trust?”, this can easily be handled by saying “I forget sometimes what is discussed and so may you, so as a policy we write down what we agree so there is no scope of confusion later.” If there is a reason why it cannot be put in writing, and you agree to not write it down, be willing for that builder or broker not to do it later, and then push for them to do it anyways. This way you don’t feel the heartburn later, if they do not do as promised. You could also hold on to some payment until these things gets done, but you will find that most people will not agree to that.
There are more things but I wanted to list out the 3 most common mistakes that I have observed buyers to make.