If you’re planning on purchasing property in the near future, there are probably a thousand questions rattling around in your head. Whether you’re looking for a new home for your growing family or a potential investment opportunity, there are a lot of things to consider.
Where are you going to look for real estate? How much money are you going to spend? How will this investment pay off?
If you’re in the process of buying a home or commercial property, we want to provide some guidance. Keep reading for the top five secrets to success when investing in property.
1. Identify Your Budget
First, don’t make the mistake of spreading yourself too thin. The majority of Americans live paycheck to paycheck because they overextend their finances in one way or another.
When purchasing property, figure out how much you can comfortably afford to spend on your new house or commercial venue. However, you need to look past the mortgage or loan payment. You must also account for:
- HOA fees (for some homes)
- CAMs (common area maintenance fees for commercial properties)
- Property taxes
- Maintenance and repairs
- And more
Make sure there’s plenty of room in your budget for these expenses after the loan payment each month.
2. Verify Your Loan Eligibility
When buying real estate, you also need to ensure you qualify for the loan you want. Affording something according to your own financial assessment is not the same as getting approved by the lender. Your loan eligibility will determine how much money you can borrow and what your interest rate will be.
Several things affect your loan eligibility. This includes your debt to income ratio, your rental history, your monthly revenue, your other debts, your credit score, and more
3. Hire an Experienced Real Estate Agent
No matter if you’re buying a home, selling a home, or investing in commercial property, you need an experienced real estate agent on your team. Local realtors know the market and the residential and commercial neighborhoods. They also have valuable connections and negotiation skills.
If you’re in the market for Nashville real estate, contact Camron with Compass for expert assistance.
4. Keep a Level Head
One of the most important secrets to purchasing property is learning how to keep a level head. Whether you’re looking for a new home or a new commercial property investment, it’s easy to get excited. Unfortunately, this eagerness can result in bad decisions.
Instead, stay unattached to the properties you view and make informed decisions. Lean on the wisdom and guidance of your realtor before making an offer on the property.
5. Learn How to Negotiate
Finally, remember that there is an art to real estate transactions. When purchasing property, it’s not just the sale price that you can negotiate. For example, you can request:
- The seller pays all realtor fees
- The seller pays all closing costs
- The seller makes specific repairs and updates
- The seller leaves certain furniture, appliances, or decor
- And more
Again, rely on your realtor to help you negotiate with the seller. Find the line between being stubborn and simply rolling over.
Planning on Purchasing Property?
If purchasing property is in your future, take a moment to reread this article and ensure you have all of your bases covered. Remember, this decision will affect you for years to come. Take time to find the right real estate investment for your family or business goals.
And if you want more real estate tips, consumer advice, or homeowner insight, you’re in the right place. Read through some of our other articles before you go. Our website is here to help people like find the information they need to thrive.