Check Before You Over Bid , What to Inspect Before You Over Bid
Need a New Home? Check Before You Over Bid
Looking for a home? Not sure of the area? Checking out homes is sometimes a little overwhelming. It can be very time consuming to look at a dozen homes and still not be sure as to what they are all about. So where do you start? The best way is to always look at a home in the area that you know you are looking to buy in!
Taking a look at the market at large is a good place to start. If the market is ripe for the picking in your area does the home have resale value? How long has it been up for sale? If you’re buying a fixer upper what are the repairs going to cost you? I would say at least 4% of the purchase price.
If you see a home that has 4 walls with a total of 20 years left on the property, how likely is it that it is worth it to build a new home or renovate the rooms? The chances of you getting your realtor to think at such a high rate is slim.
So where are you going to start? Look at a few homes. If you want to move quickly, you should use your search criteria to find homes in those areas. For example, use homes that already have tenants or are rental homes on the MLS. Don’t just think about that home that has an attached 2 unit household or that has a pool. While those things can be great, there has to be some more information to go on. Try to find 3 homes that either have a tenant or are rental homes. Look at the number of bedrooms, learn how many bedrooms and bathrooms, check out the updates. What would a semi-retailer or rental home change your home? How many of those sectors have been served? Check your community. Are homes around you well kept?
Next look at the home that already has a tenant. Is the interior fine? Is the rental home filled with adequate living spaces? Their should be no holes in the walls? They could be in need of some touch up and repair. Ask your realtor. Is the value of the home worth it as one might think? Ask you friends and family. What kind of impression is it of the place? Remember the people that your potential tenants will be? If the flooring does not come together or straight up, do you think it is going to be an expensive job for them to fix? Is the condition of the home good? If the home is lacking in the rooms, does that devalue the home? What should you do? Check Before You Over Bid
To answer the question we find out how many units in the home are occupied. If the home is a 2-unit duplex and one of the tenants has moved out, you know what is coming for you. What if the two-unit home has no tenant? The owner has been trying to rent it out and it is now three months in the home and has not sold. It is now a liability? Have you deducted all this information?
All of this information is brought together, evaluated and then presented to you to assess the value. For now, you are guard . The next time you are thinking of buying a home, look again! What if you saw a home that had so many superlative factors in its favor that, it could over inflate the value to where it would be higher than it really is? Do you then take the step to purchase this home for yourself or hold off? What if you chose the right home, found a good realtor and maybe an accountant, and negotiated down the price a pretty penny? Would you be happy with had you purchased this home? What if you had a plan b or c? What if you did all your research? What if you found a lender or a financing company that allowed you to borrow more than you had qualified for before this purchase? I could give you many others opinions but you get the point. Check Before You Over Bid