How to Save Thousands of Dollars When Buying Investment Property
Guest post written by: Neva Williamson
Buying a home without a real estate agent may seem daunting, but did you know that as many as 20% of all home buying sales are completed without the help of a real estate agent?
Thousands of home owners and real estate investors save thousands of dollars on their property investments simply because they were able to avoid using an agent. With that said, it is important that you purchase a property only if you have the sufficient knowledge and expertise to do so.
We are going to touch upon three leading problems you may face when buying a home, and then dig deeper into how to buy a house without a realtor or an attorney.
Problems You May Face Buying a Home Without an Agent
Learning about the pitfalls other investors and homeowners have fallen into will help you avoid making the same mistakes.
- You may overpay for the home
Homeowners are notorious for overestimating the value of their property.
- You are not protected if sellers do not disclose property problems
If a real estate agent is aware of a problem with the home, that problem must be disclosed in almost every state.
- You don’t know how to handle the paperwork
Real estate law is difficult for those inexperienced with it to navigate, and it varies by state, county and city.
A Buying a House Without a Realtor Checklist
Buying a house or property without the help of a realtor is possible as long as you protect yourself by taking the correct precautions. First and most important:
Learn About the Neighborhood
One of the greatest advantages to hiring a realtor is that he or she knows the neighborhood you are interested in. They have years of experience in knowing what homes sell for right down to the very street the property is on so they will be able to give you a realistic view on the cost of a home as well as be able to negotiate on the price.
Price is an important consideration, but be sure to look into other aspects including:
- School districts
- HOA rules (if applicable)
- Property taxes
This will also have a significant impact on the value and the re-sale potential of the property.
Speak to a Real Estate Lawyer If Necessary
Many homeowners and investors want to save, which is why they will look into how to buy a house without a realtor or attorney. But a real estate attorney is someone who, at least with your first or second purchase, will be your most valuable asset when buying a property.
As soon as you are ready to sign the Offer to Purchase, start working with a reputable real estate lawyer in your area. While the cost of real estate attorney may set you back hundreds to a couple thousand dollars, it is worth the expense to prevent any potential legal troubles down the road.
Get the Home Inspected and Learn How to Read the Report
Have the home inspected by a well-trusted inspector in your area and take time going through the report. There may be anywhere from 20 to 50 or more points of concern, some of which may be a concern while others – while masquerading as a big deal – are not.
Try to obtain as much information as possible from your home inspector about the leading points of concern. Your real estate lawyer may also be able to shed some light on a few key points.
Buy (or Have the Seller Pay) for a Title Insurance Policy
This is critical as it will ensure that you are able to receive the property’s title free from any liens and encumbrances.
While hiring a real estate agent to help in the purchasing of a property has become the norm, that does not mean that homeowners and investors can take on the task themselves. The key is educating yourself so that you are empowered to make the best decisions that make sense for your family and for your financial goals.
Learn more about Neva through her YouTube channel: https://www.youtube.com/user/TimeforInvesting
Disclaimer: The views and opinions expressed in this blog post are provided for informational purposes only, and should not be construed as an offer to buy or sell any securities or to make or consider any investment or course of action.