Investing in Real Estate is the best deal but it is not surprising to find that almost 50% of Kenyan investors who invest in real estates regret having made a bad decision. Do you know why? Very few of them take time to search for information to guide them when it comes to making their investment decisions. Hardly do you find an investor in field work gathering information on real estate property. They just sit back and wait for an advert on any property available for sale where they rush to buy it. If you don’t want to make these mistakes you should consult a real estate consultant who will do the research and give credible advice to you. The following are some of the mistakes you should avoid.
- Wrong choice of an Agent
Selecting an agent with whom you neither connect with nor is he committed to learning and meeting your needs. Since an agent is your guide in the whole buying and selling process look for a person who is genuine and a person who you can trust. Choose an agent who is registered such that in case of any miscommunication and any fraud you can easily get to them.
- Failing to get pre-qualified.
Don’t run to the decision of buying a house before you pre- qualify for a mortgage or bank loan. This will help you get a clear picture of the kind of a home that you can afford. Pre-qualification is your flag that signals to sellers and agents that you’re ready to find your dream home.
- Skipping the inspection.
Inspect the house to know if there are any chances of basement flooding. Inspect to identify any faulty plumbing which may turn out to increase costs in the end. Skimping on your home inspection may seem as one of the money-saver strategies to many but it will end up making you spend a bundle in home repairs in the future.
- Making your search too narrow.
Many investors limit their search on real estate property only to adverts but there are other publications, search engines, and bulletin boards that contain information on real estate property. Establishing contact with a qualified real estate agent will greatly help since many of them have access to listings at the very moment they hit the market. An agent will also make a quick connection which will open the door of your dream to get for yourself a home.
- Misunderstanding the total price tag.
Consulting an agent when hunting for homes will help you know the closing costs in excess of the required down payment. An agent will give you information on , taxes, inspection costs, title ,insurance, and legal fees that can creep up. This will help get a clear picture of the whole amount you are to gather to be able to seal the deal.
- Thinking in the short-term.
Always think in the long-term by considering the size of your family in the few years and the condition of the property in a few years to come.
- Overlooking insurance considerations
searching for information on insurance premiums and coverage levels will help get a clearer picture on the financial needs and may also help you pint out more risks that you had not put into consideration.
- Opting not to take a home protection plan.
Taking a home protection plan with your mortgage company is a short-term insurance plan to hedge against repair costs and other hidden costs.
Exercise patience and wide search of information to avoid common mistakes that real estate investors make daily.