Whether you are buying any property for the first time or are a pro in dealing with such matters, mistakes are obvious. Sometimes these mistakes can cost a lot, however they can easily be avoided if you deal with the process as per recommended by the experts. To help you keep a check on your activities, we have compiled a list of most common mistakes people make while buying any property in Pakistan.
Minimum or No Research:
Lack of research is the core reason why people lose in property investment and is still the most common mistake people make before deciding. People pay less attention to research because either they do not have enough time to do so or they are lazy and they might find it depressing. But none of these is a considerable excuse for not doing a research before paying a big amount.
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Research is a must before making any major investment or decision and by avoiding this mistake you can find a very good option and at an attractive price. With research, you become more aware of the situations and are thus capable to make balanced decisions that can help you avoid many other mistakes.
Property Inspection:
Not doing a property inspection before buying it is never a good idea. Choose the right professional assistance for you and take that person with you for the detailed inspection of the property before paying any money for it. For an untrained person, these things might seem fine at first glance, but only an expert can check and suggest if the property is in acceptable condition for buying or not.
During the inspection, you must look at the major and minor damage to the property and find out what cost will you have to pay for the repairing? You can also consider the small cracks, plumbing issues, wood flooring and other such aspects of the property in detail. You can assess all these minor changes by hiring a professional estate dealer whom you can trust or any expert person from your close terms.
Depending Excessively on Agents:
Professional assistance is good but depending too much on these people can also bring you a harm. Use your own common sense side by side. You may ask and consider the advice of the real estate agents but considering and relying on too much of it and not taking responsibility for anything on your own is not a good idea.
Here you must also assist the agent about what are your demands and budget and what you are expecting to see on the property you are willing to buy? Let them get you to the best options and you have to inspect and explore its on your own to make sure all the pros and cons are clear to you before you make any payment.
External Inspection:
It is important but is also the most ignored. You must check what is surrounding the location you are interested to buy? What are some potential benefits or drawbacks you may have to face after buying the property? Buying a property and then immediately selling it will give you no benefit so make sure you are buying at the location that suits all your needs and demands.
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Calculating the Monthly Bills:
This aspect is a bit specific to when you are about to buy or rent a residential property or a commercial building that already has residents. To avoid this mistake you must find all the utilities and tax-related costs along with bills if any. If you are renting any such place, you must calculate all such costs along with all the unforeseeable expenses including savings and food. Make a decision only after a details calculation.
Love at First Sight:
Never go for the closing a deal just because you liked something just by looking at it first. If the sellers have the idea of how desperate you are to buy that specific piece, they will jack up the price and will not be agreed for any negotiation on the price. Avoid using or showing your emotions in such deals. If you are not the one who can control the emotions, take some friend with you who is good at it as he will help you remind to stay calm during the process.
Pre-Approvals:
This is never a good idea; rather it is a big mistake that can block you in the middle. Thinking that you will get all the finance you want, and proceeding with this assumption is not a good exercise. So before moving ahead, you must look into all the possible sources and what exact amount you have in your bank before making any such decision. Only if you think and find that you have sufficient sources in hand, move ahead of buying any property.
Latest Market Trends:
The real estate market is a complex relational atmosphere and it is a bit tough to find if the neighbor is a good reason to invest or not. You cannot evaluate the right thing just by looking at the surface only. For this reason, ignoring market trends can be harmful to your investment. It will help you to have a clear picture of your investment in the coming times. For instance:
- If you have an idea of the average real estate values, they can help you to escape an overpriced property
- Fall in rates of the sales can be a great indicator of what the neighborhood of that property is not much popular and there might have been some clear or hidden reasons for that.
Ignoring the Resale Values:
There is a chance that you want to keep your newly bought property with you forever; you must also keep in mind the unforeseen sales. There can be a number of factors that can provoke you to sell your property after free years or so and with an unwise decision you cannot get any profit on selling. Ignoring the resale value of your property, at the time of buying can be very dangerous for the health of your investments. It is obvious that you can never have a 100% idea of the value of your property. But you can have a bit of idea of how things may change in coming times.
Failure in Paperwork:
Paperwork adds the actual value to all the work done till making a final decision and it is an important thing while buying or selling a property and is one of the most common points where people make mistakes. When you are making a deal with the contractor, buyer or seller, get everything written on the paper.
It does not matter how much you trust a person and how much they are professional, having a signed agreement is something you should never compromise on. It helps you to be sure of things and will guarantee you that you will get what is promised by the other party. It will also be a great support to you in the court, in case of any mishap.
Although look minor, but all these points are of great importance if you are really looking to make a wise decision about making an investment in real estate.
