Archive for the ‘Buying’ Category

Nothing is more stressful than moving house, but moving abroad is a triple-whammy!

Here are a few facts and advice on the subject for those thinking or currently in the process of buying a property in Spain.

The Legal System

Span’s legal system in the field of property is quirky and difficult to comprehend. Recently many scandals have surfaced due to a lack of understanding or communication by both buyers and the various legal parties involved with a property deal. Not doing your research here may land you in the lap of an unscrupulous company or representative. Not a place you want to go!

But not only will there be mountains of legal paperwork to wade through, but a buyer should obtain a VERY good and reputable lawyer to overlook critical and essential matters.

Always make sure that you DO have a lawyer, and find one upon recommendation who actually lives and works in Spain. This will give you the best chance of being represented by someone who has the best experience in the country’s laws and culture.

Although you may think that agents, lawyers and developers all work individually, beware! Some are happily raising profits by networking with each other, meaning that you are simply a fish to catch, and all advice given to you may be done so in their collaborative favour. So make sure your lawyer works independently. This is to ensure that he will provide his service in your best interests alone, and is not acting arbitrarily on behalf of a developer or estate agent. Seek independent advice at all times from various sources and indeed, as many different sources as you possibly can.

A Community Development

A development may consist of an entire community. These may be built as villas, townhouses or apartment blocks. A development may also include gardens, communal areas or a pool. Once you buy into a community you will be responsible for paying a fixed sum or community fee (as arranged by the community’s president). This is usually paid on a monthly basis, and covers the general costs of upkeep. This rule obviously does not apply if you buy a completely detached property with your own set boundary. Check before buying into a community exactly what your expected to pay, as you may be suprised at how high some of these community fees can be for the more prestigious and larger complexes.

Development Company

A development company will be the persons in charge of the building and construction of the project. You must check out a development company very carefully and if you buy an off plan property, get your lawyer to make sure that the company has all the relevant build permissions and licences in place for the project. Some development companies have a notorious reputation of building on certain ‘zones’ or ‘unlicensed’ areas for which they have no written permission to construct.

This is already a major problem occuring all over the coast of Spain today. as buying into an illegally built consruction could, at worst, result in you losing your property entirely through a demolition order by the council. Â Many brits today are in fear of facing this type of harranguing ordeal. Make sure its not you.

Checking out /buying a property.

Be wary of estate agents which might use common marketing skills to win you over. Do not be fooled by the statement: ‘They are nearly all sold out; you’ll have to snap one up quickly.’ It’s a common line to use. and how would you know if that were true? Don’t be concerned with this type of sales talk. If you are being coerced into a quick sale, it’s usually because something is wrong!Anyone can be an ‘estate agent’ in Spain, and some don’t even have half the credentials to prove it, They may simply have experience in working on a commission basis for a timeshare company. The standards in the UK differ vastly to that of property buying in Spain, so check out their company as a prerequisite, if you are interested in any property in their books.

It is extremely important to view the property you want to buy, and check all the details concerning its construction. Obviously, you cannot check a building if it hasn’t yet been built (off-plan), but you can visit the site and check the plot on which they intend to construct it. Do not rely on architectural drawings and the pictures displayed inside glossy brochures alone. These are often grandly designed to tempt you into buying quickly without checking all the relevant facts associated with a purchase.

I was once very impressed with a glossy brochure in my mailbox, offering a selection of eighty townhouses that were to be built over a three year period. I eventually decided not to invest in an off plan deal, however I drove by the plot out of curiosity. The entire build area and each individual unit had been marked out in chalk.

I was horrified to find that the plots were much smaller than appeared in the glossy brochure! ALWAYS check out the site or plot before buying off-plan.

Cynically view the boundaries surrounding the property or the plot you wish to buy, making sure the developer is not intending to build another site just outside your bedroom window, or destroy the scenic view which sold the house to you in the first place! The local town halls planning department will be able to give you information on whether any of the surrounding area of your property is tipped for development or not.

Building materials can sometimes be of a lesser quality in order to cut costs, have your lawyer check this out thoroughly, including obtaining a surveryors opinion. Best advice again is to use an independent surveyor not associated with the developers or the project.

Utilities

Obtaining utilities is one of the most controversially difficult legal issues to address in Spain. It is not uncommon to purchase a property where there is no correct infrastructure for electricity cables or water pipes in place. Make sure that you CAN have these amenities once the project is finished. One family moved in, only to find they couldn’t get a proper electricity line due to a legal wrangle with a neighbour, who refused that their cables cross through his property! Their only resort was to lay cables via the other side of their property – over an entire mountain!

It is important to learn that once you have completed and paid for the property, any problems regarding utilities then become yours to deal with. If there is a legal issue with the construction of which you haven’t been made aware, once you complete all parties to which you handed over your hard-earned cash will simply walk away. You will then have to fight for your own rights through lengthy court proceedings and the local council, which is a path you simply do not want to tread!

The Licence of First Occupation.(LFO)

This very important licence is issued by the local council once the project is finished and has been approved. It states that the development is habitable, or fit for occupation. Under NO circumstances should you complete a purchase without this Licence. No Licence means no water or electricity, or even sometimes gas fittings or a telephone connection. Thousands of buyers, like myself, have been conned by lawyers, estate agents and development companies, by completing without this necessary piece of paper, (sometimes under the premise that it will be forthcoming soon).

In northern Spain an entire illegally built development (housing over fifty residents) had been left stranded for almost two years without an LFO. Even though the developers provided a temporary utility supply to the community, it was minimal and precarious at best. To make matters worse, the developers eventually upped and left, taking the supply with them. The occupants were then left in the horrifying predicament of having to collect water from a local stream! The bottom line here, is that council will not issue an LFO to an illegally built development, and electricity and water companies will not serve you a contract without it.

So the simple rule is NO LFO – NO COMPLETION! If your lawyer is pressing you to complete before this licence is issued he is not acting in your best interests. Some lawyers may be in a hurry to complete the project on behalf of the developer and perhaps also to finish the deal to obtain his own fees. Unfortunately, I ignorantly completed my property purchase without the LFO in place and spent seven months fighting for proper utility connections because of it. Don’t be fooled into thinking that the Notary Office (where the signing and completion always takes place) will intervene without it. They won’t!

It is fair to say that thousands of foreign investors sail through purchases without hiccups or major problems, unfortunately though, just as many also run blindly into varying catastrophic and financially devastating property-buying disasters.

It is not a matter of ‘don’t’ buy a property in Spain, it is a matter of ‘be very cautious’. The best way to go about ensuring that you do not become embroiled in an awful predicament is to never take anything for granted or act in impulse. Do your research and above all speak to anyone who has gone through the process before you!

Online forums are a great place to start. You will receive practical and helpful tips on all aspects related to buying property in Spain. But be warned, some are full of horrendously off-putting experiences.

Carla Acheson is a freelance writer for a variety of subjects, mainly the independent music industry. She is the Editor of www.incite-ezine.co.uk [http://www.incite-ezine.co.uk], and the Assistant Editor for news site Indie News Live.com

Author: Carla Acheson
Article Source: EzineArticles.com
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INVESTMENT IN TURKEY

The Turkish property market has gathered pace in recent years and constitutes a good property investment. Buying a property in Turkey is currently one of the soundest investments that someone who is looking to buy abroad can make.

If you’re considering buying investment property in Turkey or would like to know more about why buying in Turkey right now could offer you strong long term investment potential, here are our top reasons for buying Turkish real estate:

TURKISH RIVIERA

It is a great holiday destination as it is continuing to attract large quantities of European people. Turkey has a wonderful coastline with a great Mediterranean culture. The Turkish Riviera enjoys up to 300 days of unadulterated sunshine every year which makes the area an international tourist destination hit. Tour operators have increased their exposure to Turkey and in return Turkey has responded by developing some world class resorts offering stunning holiday opportunities that are proving particularly popular with European travellers. As a direct result the demand for short term rental accommodation in summer holiday hotspots is on the increase and rental yields are also on the increase meaning a well positioned investment property will offer great buy to let potential.

ECONOMY IN TURKEY

There is continuing talk of the country potentially joining the European Union at some point. Turkey’s long-standing campaign to join the EU will almost certainly soon be successful. EU membership would also mean a rapid price hike. Turkey is positioning itself for acceptance for EU accession. It is a long and slow process but it does mean that the Turkish government is working hard to bring their laws, standards and ‘ways’ in line with those of other European countries.

This standardization makes for a comfortable transition into Turkey for businesses, expatriates and investors and increases the potential for inward foreign direct investment which is positive for Turkey’s long term economic success.

QUALITY OF THE PROPERTIES IN TURKEY

The modernisation of the country continues and the property market is set to grow for the foreseeable future. The majority of the new developments being built specifically for property investors and second home buyers in Turkey are being built to meet European building standards and regulations. This gives the investor confidence in his purchase. The Turkish national and local governments are well aware of the wealth of history and cultural that their country has and are keen to preserve the country’s natural assets from over development and ruin therefore they have very strict planning and density rules when it comes to property development which help to maintain the country’s beauty and its unique qualities and attributes. This means that investment properties will be built sympathetically and that they will never be surrounded by mass density housing blocks at some point in the future.

WHO IS BUYING PROPERTY IN TURKEY ?

Turkey is popular with foreign property buyers and second home owners. It has some of the world’s oldest settlements together with important classical remains – Ancient Greek, Roman, Persian, Arabic and Byzantine. The Turkish coast has a delightful climate, mild in winter and hot in summer, dramatic scenery and turquoise waters. The Turkish people are very warm and helpful to foreign visitors and the cost of living in Turkey is low.

PROPERTY PRICES IN TURKEY

It is likely that real estate prices in coastal areas will continue their present upward trend.

With its long rental season and property prices 10 years behind those in Spain, Turkey makes a sound economic choice for property investment. Villas with pools and luxury apartments with shared facilities are popular. As stated, Turkish property prices are rising consistently – however, as a direct result of the recession in the housing market earlier this century house prices in Turkey remain intrinsically low and have a lot of ground to make up. By buying now you will be buying into that projected period of inflation, you will also be benefiting from the future predicted buoyancy and interest in the market sparked by Turkey’s growing appeal and attraction for global investors and visitors. These facts point to a long term sustained period of capital appreciation and also to the fact that you can likely benefit from strong rental demand and increasing rental prices making a buy to let investment in Turkey also highly attractive.

The changes made have translated into significant price increases which are starting to proliferate countrywide but which started in the most popular areas for investment properties in Turkey, namely along Turkey’s southern coastline. Here prices increased between 28 and 50 during 2004 alone.

BUYING PROCESS

Buying investment properties in Turkey couldn’t be simpler. If you’re resident in a country in which Turkish residents are free to purchase freehold property then you’re free to buy in Turkey. The buying process follows very traditional rules with a preliminary contract signed upon price agreement, a non-refundable deposit made upon condition that all surveys and searches are satisfactory, and a final contract signed before title deeds are transferred. The simplicity of the buying process is a pleasant surprise for many buyers and increases the attraction of the country for investment purposes.

EASY TRAVEL

There are direct flights to a number of coastal Turkish airports: Antalya, Bodrum, Dalaman, Izmir. The number of airports and a good road network in southern Turkey means that the entire areas is very easily accessible internationally which means that tourists can come and go easily increasing the demand for short term accommodation. It also means it’s easy for investors to have access to their investment properties.

SAFE COUNTRY

Serious crime and crime against property and the individual are very low in Turkey meaning that an investor and his assets are safe and secure.

THE COST OF LIVING

The cost of living in Turkey is far lower than in any other European country and yet the quality and availability of produce is incredibly high. As Turkey has a massive manufacturing base all everyday household products, furnishings, fixtures and fittings can also be sourced cheaply and relatively easily.

Author: Tiffany Morenzo
Article Source: EzineArticles.com
Provided by: Digital Camera News

Whether you don’t see yourself settling down for a good number of years to come or if you want to establish a solid family life the soonest time possible, one of the most important decisions that you will ever make is choosing which home to buy. It does have a lot to do, not just with your future plans, but with your finances as well. You wouldn’t want to be stuck in house with a huge mortgage that will take up a chunk of your paycheck, and you don’t want to compromise on owning something too small, either. So how will you create that delicate balance between the two? That is exactly what we will try to discover here

Taking the First Step when Buying a Home

Before enumerating the top mistakes that you should steer clear of when buying a home, let us first have a quick preview of the factors that you do need to take into consideration. Perhaps the most important question that you need to ask yourself is: when is the best time for me to personally buy a home? Naturally, if you are already settling down with a family, buying a home is a must.

However, if you are still enjoying the single life, decide whether buying your own home instead of renting is a practical solution all the way round. This is especially true now that the entire world is experiencing an economic crunch. You wouldn’t know when the real estate industry will drop again, or if the company employing you is even on a stable condition. Just to be on the safe side, put off the decision for buying a home at a time when you are more or less stable financially.

Once you have decided whether now is the right time for you to purchase a home or not, you can move on to considering these other factors when purchasing a home:

- The style/size of home that you want.
- The neighborhood that you wish to live in.
- The location of the home.
- The quality of the home’s interior/exterior.
- Your budget.

The last item is particularly important because if you will not set a budget for when you are purchasing a home, you might end up struggling through the payment of your mortgages – and eventually end up losing the house in the process.

Steer Clear of these Top 10 Home Buying Mistakes

Now that you already have an idea about the factors that you need to consider when buying a home, let us take a look at the top ten home buying mistakes to avoid, so as not to regret your decision in the future:

1. Not getting the professional help that you might need during the home buying process.
If you are a home buyer and you are dealing with a real estate agent, remember that he or she is working for the sake of the seller and not you as a buyer. Sure, you need to get professional help if this is something that during the home buying process, but be careful with who you are dealing with – and make sure that the person assisting you is working towards your best interest.

2. Not having a price ceiling for the type of home that you can afford.
One of the most common mistakes that first-time homebuyers make is not setting a price ceiling for the type of home that they can afford. Don’t over-extend your finances, no matter how excited you are in the prospect of finally owning a house. Make sure that the monthly mortgage payment is something that will still allow you to live comfortably, and you should be all set.

3. Not putting down enough down payment.
Even if you receive an offer to buy a home with zero downpayment, you have to think twice before grabbing the opportunity. Experts say that a 5 to 20% down on your home is a good enough deal.

4. Not shopping around enough.
Unlike when shopping for goods at a department store, purchasing a home is a major financial decision. Take all the time that you need and make sure to look at all your buying options before making a decision.

5. Missing out on the home inspection process.
Don’t think that there is such a thing as ‘falling love at first sight’ with a house. Sure, you may think that the white picket fences and the exterior of the house is straight out of a fairy tale, but keep your eyes wide open by going through the home inspection process.

6. Forgetting to pay a closer look at the location of the home.
“Location, location, location” should be the motto of homebuyers. What’s the sense of purchasing a home which is miles away from the nearest hospital, grocery store or your workplace? At the end of the day, convenience with your home’s location is something that you will also be paying for – so pay close attention to this when buying a house.

7. Skipping on the pre-qualification and pre-approval process.
Again, it’s important not to get over-excited at the prospect of buying a home, especially if it is your first. Don’t skip on the pre-qualification and the pre-approval process, which is something that a real estate agent can assits you with.

8. Failing to learn about the ins and outs of the mortgage process.
Although the best way to purchase a home is with cash, most Americans cannot afford to do so. When taking out a home loan, make sure to understand about the basic process which will take your credit score into consideration, the avenues where you can actually get the loans, as well as the types of loans which are available for you.

9. Failing to consider all the financial aspects of buying a home.
When buying a home, there are additional and hidden costs involved – from maintenance to tax and insurance, or decorating and your dues as a homeowner. Always think about these things before making that final decision on which home to buy.

10. Failing to consider the reselling value of the home.
Finally, remember that the first home that you will buy will most probably not be your last. Due to job placements or other personal reasons, you might need to move out of the house that you bought in the future. As such, it pays to consider the reselling value of your home as well before signing your name on the dotted line.

This list is by no means exhaustive. There are many other factors that you need to take into consideration when buying a home, and a lot of newbie mistakes to avoid. All in all, the moral of the story is that home buying is a decision that you should not rush – and it helps if you will learn about the ins and outs of the home buying process so that you will not come to regret your home buying decision in the future.

Mark Z Home Selling Team specializes in selling Northville Michigan Real Estate. If you are looking for Commerce Michigan Real Estate or Foreclosed Homes in Michigan you can call us at 248.937.1337. If you’re trying to sell your home, we sell over 200 homes a year.

Author: Mark Z
Article Source: EzineArticles.com
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The term ‘lease option to buy’ might also be referred to as ‘rent to own’ or simply as ‘lease option’.  In its most basic definition a lease option to buy is when a consumer leases (or rents) a property for a certain period of time and at the end of that time the consumer has the option to buy the property.

Let’s discuss who would consider a lease option to buy and how they actually work.  To find out the advantages and disadvantages be sure to read “Lease With Option To Buy-Understanding the Pros and Cons”.

WHO WOULD CONSIDER A LEASE OPTION TO BUY?

Although anyone buying a home might consider a lease option to buy, the reality is consumers with less than perfect credit who do not have enough money for the required down payment make up the vast majority of this niche market.

As you may already know, the days of purchasing a home with little or no money down with questionable or bad credit is a thing of the past.  Banks have been hit hard by the collapse of the sub prime market and have over compensated in many ways.  The bottom line is it’s not nearly as easy obtaining a mortgage as it used to be.

The following might be someone who would consider a lease option to buy: has bad credit; not enough money to meet the bank’s down payment requirements; filed bankruptcy in the last two years; went through a recent foreclosure; went through a recent short sale; does not make enough money to afford a property but might in a year or two.

Basically, anyone who does not qualify for a normal, every day mortgage would be a good candidate for a lease option to buy.

HOW DOES A LEASE OPTION TO BUY WORK?

A lease option to buy is actually pretty easy.  Let’s say I have a property for sale and you want to buy it. The only problem is you can’t qualify for a mortgage today but should be able to qualify in two years.

I might suggest that you rent my place for two years with a security deposit of $3,000 and a rate of $2,000 per month; at the end of the two years you have the option of buying it for $250,000.  If you agree to this idea then we take it a step further and add a few more small details. (Keep in mind, some sellers want a security deposit AND a separate down payment. It’s all negotiable)

I’ll suggest that out of the $2,000 per month rent I will apply $200 towards the purchase price.  In other words, the lease portion will be $1,800 and the option to buy portion is $200. Also, I’ll suggest that if you decide to buy then the $3,000 security deposit will also go towards the purchase price. 

If you agree, in two years you will have paid down the purchase price by $7,800 ($200 a month for 24 months and the $3,000 security deposit) for a remaining balance of $242,200.  By now you should be able to qualify for a mortgage and close in the next month or two.

Everything sounds pretty good, right?  You get to rent, you get the option to buy if you want and it doesn’t cost anything ‘extra’.  What do you have to lose? Plenty!

What if you decide not to purchase the property at the end of the two years?  Easy.  I get to keep the $200/month option money and the $3,000 security deposit. 

Two questions usually come up at this point: Who pays what during the lease period and is the buyer allowed to make any changes to the property during that time?

My standard answer is, I don’t know.  The dollar amounts and the terms of the lease with option to buy are all negotiable between the two parties. 

In summary, a lease option to buy is used primarily by those who are not able to obtain a bank mortgage.  The security deposit and a portion of the monthly rent will lower the remaining balance should the buyer exercise the option to buy. If not, the seller keeps the money.  The dollar amounts and terms of the lease option to buy are negotiated between the two parties.

Steve Hattan is a true real estate professional and expert who has listed well over one thousand properties and has saved his clients in excess of five million dollars in commissions and fees. Steve can be contacted through his Personal Blog or through his real estate website http://www.affordablelistings.com.

Author: Steven Hattan
Article Source: EzineArticles.com
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7) Not knowing how much you can afford before making and offer.

The Easiest way to avoid this it to get Pre-Approved finance first, this is very different to just getting pre-qualified for finance and even with pre-approval, you should not sign an unconditional contract because if the valuation doesn’t come up, even though you can afford it the lender can still withdraw the offer to finance it. Then you can be left in default and risk forfeiting your deposit. To avoid this I recommend you always sign a contract with at least two contingencies:

- Mortgage Finance; you’re pre-approved, but is the house pre-approved? Before a lender will give you the money they will want an appraisal of the property to confirm that there is enough equity in it to justify the loan. If the property appraises too low then the loan may be declined. To avoid this make your contract subject to finance approval. Your lawyer can advise you on the correct wording to use.

- Inspection; never buy anything, existing or new without a thorough independent professional inspection. If termites are active in your area I strongly recommend you make the contingency, “subject to receiving a satisfactory building and pest inspection from appropriate experts” Again your lawyer can advise you on the correct wording to use.

- Insurance; You will also need to confirm you can get adequate insurance coverage. In some areas it can be difficult to get hazard insurance.

6) Not doing proper and thorough research and preparation.

It is often said that “Knowledge is Power” and this has never been truer when you are looking to buy a property. It’s absolutely critical that you research the neighborhood before you buy. Check out the area, facilities and the schools, transport systems etc. Also it’s a good idea to attend a community meeting, if possible. You’re not just buying a house; you’re buying a piece of that community and the land around it. Do what ever you need to do to get to know the area. Also research the property values and recent sales in the area. This decision to buy can be a life changing experience or disaster not only for you but it affects also effects your family.

5) Failing to get a check survey to confirm the property boundaries and the house location.

This is a very simple check carried out by a land surveyor to make sure firstly that you are buying the correct property and secondly to confirm the boundary’s and the house are actually situated on your property. You only get one chance at this and if at a later stage something is found to be incorrect. The consequences can be significant and devastating this step should never be taken lightly, just measuring the fence lines is not enough. I’ve heard of reported cases where people actually brought and lived in a property for years before somebody did a check survey only to find they had been living in the wrong house.

4) Failing to take out adequate insurance after signing the contract.

This is a much neglected area that does need your attention. When you sign a contract to purchase a property you are deemed to have an interest in the property. At this point you have no idea if the seller has adequate insurance or if they have any insurance at all. I strongly recommend you get professional advice to confirm the replacement cost of the house and this should be your starting point. It is not wise to insure for the purchase price only as this will often leave you under insured.

3) Not Using a Buyers Agent.

Trying to negotiate without professional help or advice. Sadly this is a mistake most smart buyers make every day and it can cost you literally thousands of dollars. When trying to negotiate to buy a property you are forced to deal with the sellers agent who is a seasoned professional negotiator, who knows all the intricacies of the property market and real estate negotiating because that’s what they do every day to put food on their table. The sellers agent has been contracted to negotiate the very best deal for the seller, that’s how they earn their living. Many buyers make the mistake of thinking they are just the person in the middle who passes on the offers for both parties. Wrong, make no mistake, the selling agent is working for the seller to negotiate as much money out of your pocket as humanly possible. This is why. If you really think you can out negotiate an experienced seasoned trained professional like a real estate agent, then you must be really on your game, or it most definitely will cost you thousands more to buy the property. How to avoid loosing thousands? Hire a Buyers Agent or a Buyers Advocate who can more than match it with their negotiating skills with the sellers agent. For the modest cost involved it really can be a great investment and save you thousands.

2) Not Getting Proper Legal Advice Before Signing Anything.

The first thing you must realize is when you sign a contract, you are now obligated not only to buy the property but also to do it exactly in accordance with the terms and conditions of that contract. Even very minor and almost unnoticeable changes in the wording of the contract can have a huge effect in shifting the risks and costs between the buyer and the seller. If you sign a contract without fully understanding every word in that contract then you will be making one of the biggest mistakes in buying real estate. Not knowing or understanding all your legal rights and obligations when signing a contract can be disastrous as real estate law can be confusing and complex. The contract you will sign when buying a home is legally binding.

Most standard contract forms used by most firms are heavily weighted in favor of the sellers (this maybe why they are often referred to as “sellers” contracts and not “purchase” contracts) When the negotiating is done, all is agreed, and everyone’s temperature is high, the contract document is prepared and handed to you for signing. This is the time you must stop!, take the contract away to get some trusted advice from a legal adviser who is experienced in real estate law. Good advice at this stage, even if it is just changing a few words in a contract can save you many times the cost of the advice and can protect you from making a mistake that will cost you thousands.

1) Failing to get a Professional Building Inspection done. Although it might appear self serving for a property inspector to say you need the services of a professional property inspector when you buy your home. I can only say that many years of experience have repeatedly justified that advice. (To the extent that I am now writing a “Book of Horror Stories”). I really believe that this one piece of advice is the best and most valuable bit of advice in this entire report. No one else in the home buying process (apart from your lawyer) has the comprehensive training and experience necessary for the protection of your interests.

No one else in the process has the true independence and lack of conflict that are required to protect your interests than an independent property inspector. Gone are the days of getting your home inspected by a well meaning friend of relative, this process demands professionalism and expertise that can only be delivered by an experienced independent property inspector. Not getting a professional pre-purchase building inspection done to discover hidden defects before you buy a home is one of the most expensive mistakes you can make, and is the easiest to avoid. If you are not a professional home inspector, hire one. You should make your contract subject to receiving a satisfactory building report from a professional independent inspector. Whether the house is new or used, any home can have a wide variety of defects that go way beyond the obvious cosmetic ones and it will take a skilled inspector to uncover these defects that will only prove very costly to repair after you buy the property then it’s to late.

In addition you can also make the contract contingent on more specific systems in the property like Plumbing, Electrical, heating, air-conditioning etc. Alternatively a well written contract can also require the seller to warrant that these systems are all in proper operating condition. If you’re buying in a Termite prone area a timber pest inspection should also be included. If you’re buy at auction the building inspection must be done before the property is auctioned We have seen to many buyers dreams shattered by not having a professional pre-purchase building inspection carried out before they brought the home. Not getting a professional pre-purchase inspection done to discover hidden defects before you buy a home is one of the most expensive mistakes you can make, and is the easiest to avoid Buying a property is a complex transaction; You will need a dependable team around you like a Lawyer, Lender, Inspector, Insurer as well as all you own due diligence and advice from friends and family. You should enlist the help of all these experts early in the buying process.

Leon Cupit is a building professional with over 30 years in the industry. Founder of Independent Property Inspections and is now the fastest growing property inspection franchised business in Australia. Leon writes regular articles about his experiences and observations that effect home buyers, home sellers, property investors and the real estate industry in general.

To find out more valuable information please visit http://www.ipi.net.au

Author: Leon Cupit
Article Source: EzineArticles.com
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7) Not knowing how much you can afford before making and offer.

The Easiest way to avoid this it to get Pre-Approved finance first, this is very different to just getting pre-qualified for finance and even with pre-approval, you should not sign an unconditional contract because if the valuation doesn’t come up, even though you can afford it the lender can still withdraw the offer to finance it. Then you can be left in default and risk forfeiting your deposit. To avoid this I recommend you always sign a contract with at least two contingencies:

- Mortgage Finance; you’re pre-approved, but is the house pre-approved? Before a lender will give you the money they will want an appraisal of the property to confirm that there is enough equity in it to justify the loan. If the property appraises too low then the loan may be declined. To avoid this make your contract subject to finance approval. Your lawyer can advise you on the correct wording to use.

- Inspection; never buy anything, existing or new without a thorough independent professional inspection. If termites are active in your area I strongly recommend you make the contingency, “subject to receiving a satisfactory building and pest inspection from appropriate experts” Again your lawyer can advise you on the correct wording to use.

- Insurance; You will also need to confirm you can get adequate insurance coverage. In some areas it can be difficult to get hazard insurance.

6) Not doing proper and thorough research and preparation.

It is often said that “Knowledge is Power” and this has never been truer when you are looking to buy a property. It’s absolutely critical that you research the neighborhood before you buy. Check out the area, facilities and the schools, transport systems etc. Also it’s a good idea to attend a community meeting, if possible. You’re not just buying a house; you’re buying a piece of that community and the land around it. Do what ever you need to do to get to know the area. Also research the property values and recent sales in the area. This decision to buy can be a life changing experience or disaster not only for you but it affects also effects your family.

5) Failing to get a check survey to confirm the property boundaries and the house location.

This is a very simple check carried out by a land surveyor to make sure firstly that you are buying the correct property and secondly to confirm the boundary’s and the house are actually situated on your property. You only get one chance at this and if at a later stage something is found to be incorrect. The consequences can be significant and devastating this step should never be taken lightly, just measuring the fence lines is not enough. I’ve heard of reported cases where people actually brought and lived in a property for years before somebody did a check survey only to find they had been living in the wrong house.

4) Failing to take out adequate insurance after signing the contract.

This is a much neglected area that does need your attention. When you sign a contract to purchase a property you are deemed to have an interest in the property. At this point you have no idea if the seller has adequate insurance or if they have any insurance at all. I strongly recommend you get professional advice to confirm the replacement cost of the house and this should be your starting point. It is not wise to insure for the purchase price only as this will often leave you under insured.

3) Not Using a Buyers Agent.

Trying to negotiate without professional help or advice. Sadly this is a mistake most smart buyers make every day and it can cost you literally thousands of dollars. When trying to negotiate to buy a property you are forced to deal with the sellers agent who is a seasoned professional negotiator, who knows all the intricacies of the property market and real estate negotiating because that’s what they do every day to put food on their table. The sellers agent has been contracted to negotiate the very best deal for the seller, that’s how they earn their living. Many buyers make the mistake of thinking they are just the person in the middle who passes on the offers for both parties. Wrong, make no mistake, the selling agent is working for the seller to negotiate as much money out of your pocket as humanly possible. This is why. If you really think you can out negotiate an experienced seasoned trained professional like a real estate agent, then you must be really on your game, or it most definitely will cost you thousands more to buy the property. How to avoid loosing thousands? Hire a Buyers Agent or a Buyers Advocate who can more than match it with their negotiating skills with the sellers agent. For the modest cost involved it really can be a great investment and save you thousands.

2) Not Getting Proper Legal Advice Before Signing Anything.

The first thing you must realize is when you sign a contract, you are now obligated not only to buy the property but also to do it exactly in accordance with the terms and conditions of that contract. Even very minor and almost unnoticeable changes in the wording of the contract can have a huge effect in shifting the risks and costs between the buyer and the seller. If you sign a contract without fully understanding every word in that contract then you will be making one of the biggest mistakes in buying real estate. Not knowing or understanding all your legal rights and obligations when signing a contract can be disastrous as real estate law can be confusing and complex. The contract you will sign when buying a home is legally binding.

Most standard contract forms used by most firms are heavily weighted in favor of the sellers (this maybe why they are often referred to as “sellers” contracts and not “purchase” contracts) When the negotiating is done, all is agreed, and everyone’s temperature is high, the contract document is prepared and handed to you for signing. This is the time you must stop!, take the contract away to get some trusted advice from a legal adviser who is experienced in real estate law. Good advice at this stage, even if it is just changing a few words in a contract can save you many times the cost of the advice and can protect you from making a mistake that will cost you thousands.

1) Failing to get a Professional Building Inspection done. Although it might appear self serving for a property inspector to say you need the services of a professional property inspector when you buy your home. I can only say that many years of experience have repeatedly justified that advice. (To the extent that I am now writing a “Book of Horror Stories”). I really believe that this one piece of advice is the best and most valuable bit of advice in this entire report. No one else in the home buying process (apart from your lawyer) has the comprehensive training and experience necessary for the protection of your interests.

No one else in the process has the true independence and lack of conflict that are required to protect your interests than an independent property inspector. Gone are the days of getting your home inspected by a well meaning friend of relative, this process demands professionalism and expertise that can only be delivered by an experienced independent property inspector. Not getting a professional pre-purchase building inspection done to discover hidden defects before you buy a home is one of the most expensive mistakes you can make, and is the easiest to avoid. If you are not a professional home inspector, hire one. You should make your contract subject to receiving a satisfactory building report from a professional independent inspector. Whether the house is new or used, any home can have a wide variety of defects that go way beyond the obvious cosmetic ones and it will take a skilled inspector to uncover these defects that will only prove very costly to repair after you buy the property then it’s to late.

In addition you can also make the contract contingent on more specific systems in the property like Plumbing, Electrical, heating, air-conditioning etc. Alternatively a well written contract can also require the seller to warrant that these systems are all in proper operating condition. If you’re buying in a Termite prone area a timber pest inspection should also be included. If you’re buy at auction the building inspection must be done before the property is auctioned We have seen to many buyers dreams shattered by not having a professional pre-purchase building inspection carried out before they brought the home. Not getting a professional pre-purchase inspection done to discover hidden defects before you buy a home is one of the most expensive mistakes you can make, and is the easiest to avoid Buying a property is a complex transaction; You will need a dependable team around you like a Lawyer, Lender, Inspector, Insurer as well as all you own due diligence and advice from friends and family. You should enlist the help of all these experts early in the buying process.

Leon Cupit is a building professional with over 30 years in the industry. Founder of Independent Property Inspections and is now the fastest growing property inspection franchised business in Australia. Leon writes regular articles about his experiences and observations that effect home buyers, home sellers, property investors and the real estate industry in general.

To find out more valuable information please visit http://www.ipi.net.au

Author: Leon Cupit
Article Source: EzineArticles.com
Provided by: Bumper guardian