The real estate market can seem complicated for outsiders, especially that most of the details aren’t matters of common knowledge. Therefore, the best way to fully understand real estate is through the eyes of an expert. Whether you’re looking to invest, buy, or rent, these tips from property experts will help you get your head around the enigma that is real estate.
Look for Suitable Investment
Real estate is quite a tempting option for those looking to invest their money. It’s a relatively stable market with consistent returns. However, what people often neglect is that there is more than one way to invest in real estate. The go-to option for many people is buying a property and renting it out, and if you’re buying in an emerging neighborhood, you can expect to make a lot of money.
Nevertheless, catering to your tenant’s needs takes a lot of time and effort, especially when they first move in, and so, you need to consider whether or not you’re willing to become a landlord. Add to that the amount of time you’re willing to dedicate to marketing your property to generate a steady stream of tenants. If you’re unwilling to deal with any of this, you can stick to buying a property and selling when the demand gets higher. You could always buy fixer-uppers, repair them, and sell them for a higher price. There is always a way to invest in real estate, but an unsuitable strategy is more likely to leave you with a loss.
A lot of people make the mistake of neglecting the loan approval procedure or leaving it until they’ve found a house. Why is that a mistake? Three reasons. First off, your realtor cannot help you if they don’t know how much you can afford to pay. Keep in mind, you might not get approved for a loan in the first place. Second, if you have your finances in hand, you’ll be sending out the message that you’re a serious buyer which means you’re not intending on wasting anyone’s time. Your realtor will be motivated enough to bring you the best deals and because you’ll have the money, they’ll be able to negotiate better for you.
Third, and most importantly, a lot of sellers don’t consider buyers who aren’t pre-approved. Put yourself in the seller’s shoes for a moment. Among the ten buyers asking you for a showing appointment, only five have the funds to buy. Who would you give your time to? For all you know, the buyers without funds might not want to buy in the first place. So, if you want to be taken seriously, you need to take initiative and get your loan pre-approved.
The Ultimate Eco-Friendly House
Finding an eco-friendly house can be a challenging task if you don’t have the necessary knowledge and the right realtor for the job. What qualifies a house as eco-friendly in the first place? Mainly, it’s how much energy the house consumes. An environment-friendly house will keep the heat inside so you won’t need to overwork the heater. The house will also be properly insulated to keep the cold air out. That said, according to Tina Jacob, the eco-friendliness of a house depends on a lot of factors. Everything from the house’s position to the type of doors, windows, and insulation it’s fitted with can play a part in determining the efficiency with which a house uses electricity.
When picking out a house, you might be tempted by the most outright environment-friendly features. It’s important to remember that even something as little as the space underneath the front door can be enough to undo all the perks of the other features. Last but not least, always ask if you can see past utility bills, as that’s where the proof lies.
You’re Buying the Frame, Too.
A frame is an essential part of any painting. While the main star is the painting, the frame plays a big role in accentuating colors, creating a feel for the painting, and defining how you experience the work of art. In that same manner, the house is the star. It’s the Mona Lisa you came to see. As for the frame, that’s the neighborhood. Regardless of how good a house is, living in an unsafe, unfriendly neighborhood is not worth any amount of money. Not to mention, if the house you’re considering is a little far away from the city, you’re going to want to drive around, see how close the nearest amenities are, as well as the distance from your house to your place of work.
You’re also going to want to visit the neighborhood at different times to get a feel of how the neighborhood is usually like throughout the day. Try to imagine yourself as part of the community living there. Is the cost of living too high? Are you better off spending more on a house near the city center than paying for daily transport? What about your friends and loved ones? Can you get to them easily or is the commute going to affect your social life?
Make sure you take into account the pros and cons of the neighborhood you’ll be living in before you make a decision. Aside from doing your own research, don’t forget to talk to the sellers because they can fill you in on some valuable details.
The real estate game isn’t at all complicated. In fact, the rules are quite simple. Have proof of funding with you, as well as any other documents that show you are a serious buyer. Research the type of house you want if you are more concerned about the environment, and the neighborhood you might be moving into as well. Have a plan for your next steps after buying the house: are you going to rent it out, fix and flip, or live in it?
Last but not least, before you go looking for houses, don’t opt for a house that costs you your whole budget. You will still need money for repairs, bills, taxes, and more. You need to account for that when applying for a loan and when making an offer.