Thinking about buying a house fast? Checkout our comprehensive list of key investment principles and ensure your next purchase is a wise one.
For potential buyers looking to make a smart real estate investment, it’s important to know the basics of successful investing. This guide outlines key principles for buyers to consider when purchasing property, from doing your research and setting yourself up for success, to getting financing and selecting the right property.
Location, Location, Location.
One of the most important things you can do when buying a real estate investment is to choose the right location. Area plays a large role in determining future value, such as whether the spot is up-and-coming, declining, or has potential for development shortly. When you find a property at an attractive price, remember to research its surrounding neighborhood and compare it to others nearby to ensure it’s a wise purchase.
When People hear location, a lot of the time they aren’t fully sure what this term encompasses. Here are a few things to keep in mind according to Investopedia:
Homes in cities that have little room for expansion tend to be more valuable than those in cities that have plenty of room.
Consider these things about a neighborhood: appearance, accessibility, amenities and development plans.
If a space is near things such as busy roadways it will be less desirable for resale.
“Acreage often trumps the quality of a house because land tends to increase in value.”- Investopedia
Do Your Research on the Home’s Condition and Market Value.
Before investing, it’s important to conduct a thorough inspection of the home. Make sure that you understand the condition and age of major systems (water heater, HVAC, electrical, etc), also assess the level of deferred maintenance. You’ll want to evaluate comparable market values in the neighborhood by looking at recent sales of similar homes nearby. Doing your research in advance will help ensure that you are making a wise investment and not overpaying for a property.
Work With Experienced Professionals To Guide You Through the Process.
Navigating the intricacies of a real estate transaction can be confusing and time-consuming. Working with a knowledgeable investment expert at Evergreen Investments will help in buying a house. They’ll give you a comprehensive understanding of the process, while exposing you to industry best practices. These professionals can also create a strategic plan to buy based on your specific needs.
Select a Property That Meets Your Investment Criteria.
It is important to find a property with features that match your investment goals and budget. Research similar properties in the area, compare amenities, and understand market trends so you make an informed decision. Evaluate the potential return on investment by examining rental income, appreciation, financing terms, taxes, insurance costs, and maintenance expenses.
Consider Investing in a Professional Inspection Before Closing the Deal.
Professional inspections are a smart and effective way to guarantee that the value of your purchase is justified. Utilizing a reputable professional property inspection company will alert you to any potential issues in the property, from major structural problems to smaller aesthetic concerns. A thorough inspection can provide valuable leverage during negotiations, help protect your deal from potential future liabilities, and give you an accurate measure of what renovations may cost before making an offer.
Considering the location, investing in professional inspection, and researching your prospective home’s market value are all important investment principles prospective buyers should consider. It’s also valuable to note that working with a trusted Investment Advisor at Evergreen Investments can be highly beneficial in your buyer journey. As you go along, taking note of these principles will only help you along your journey.