Buying a house? Educate yourself about the real estate basics & concepts

Buying a house? Do not blame the real estate agents for any loss, educate yourself.

How many of us have a notion that maximum number of real estate agents are double-dealers and blame them for any loss in the property? Well, this article will help you to understand why it is so important for you to educate yourself in the real estate basics & concepts, rather than being completely dependent on the real estate agent or fall prey to frauds. This article will also help you to question the real estate agent to avoid any confusion.

Find out about the necessary requirements which are needed while investing in a property, the risks involved in an investment and so on. You can also seek help from friends and acquaintances to find out more about the sector. Other sources of educating yourself are discussed below:

Points to consider while buying a property;

Internet help: As the technology advances, there are increased number of online real-estate search tools which cater to the needs of the buyers. These online tools help you understand the process and not be completely dependent on the real estate agents.

Basic study of the area: You need to do a basic study of the area in which you wish to buy a property. Know the actual property value in the market and the accessibility to commercial places, educational institutions and various high-end retail marketing. You should also know what sort of people would be interested in this type of property. Ensure that there is an easy accessibility to schools, colleges, your workplace and other retailing sectors.

Know your budget: It is very important that you have a sketched list of the amount you would like to invest on the property. Be firm on the budget, since buying a house is an emotional decision and it generally happens that people stretches their budget to buy a home they like.

Investment planning: You  should have a decided goal on how much you have to invest in the property. You should also include all the expenses in the cost of the property before investing in any property.

Along with this there are various other factors which should be considered while doing investment planning;

• The location of the property is the key factor while buying or selling it. Homes on high-rent or in highly populated areas are ideal. Stay away from rural areas and property with less connectivity.
• The ‘type’ of property is another important aspect. Since not all investment properties are the same, it’s important to determine what type of property fits your strategy.
• Maintenance of the property plays another important role. Line up maintenance individuals who can take care of the different challenges that occur, so you can simply call the person when a particular issue comes up.
• Home loan for the property should also be considered, you should know well in hand the amount of disposable money you have in a month to determine if the EMI or the other monthly charges related with the property like maintenance fees are affordable by you. It is also advisable to go for a floating interest rate scheme.
• Stick to your decided budget and avoid stretching it due to various factors.

Know your requirements: Know what you are actually looking for. Do not go in for properties only because the agent has taken you there. You need to plan on what are the requirements and amenities which are needed for you to invest. Be clear on what you actually want while investing in a property.

Negotiation skills: Like any other real estate agent you should know the negotiation skills while investing in a property. You do not have to be emotional while investing in a property and the real estate agents can do this task in a better manner.

Get hold of a proper real estate agent: It is very important that you consider a few important points while choosing a real estate agent. The points are as followed;

• Reputation is the key factor in looking out for a good real estate agency. Go through the list of properties they deal with and the kind of services they provide.
• Ensure that the agent has a legal license.
• Ensure that you pay him the precise price as his commission rather than paying an extra amount.

Know when to buy: Do a detailed research and seek the help of acquaintances before you invest in any property. The market value of properties is fluctuating often. Hence, it is very important for you to know when to invest in the property.

Hiring a lawyer: Your real estate agent can only help you to a certain level with the legal matters, to avoid any confusion it is advisable that you hire a lawyer before investing in a property and get the title of the property or any other legal papers checked.

Points to consider while selling a property;

Know the tactics of marketing a property: Once you have found the mediums of educating yourself about the real estate sector, you should know the tactics and the techniques which are involved in marketing a property. There are a number of online platforms like Commonfloor.com, which give you various ideas on how to market the property and educate yourself about the real estate essentials. Perhaps this will also save you some money, which you would have shelled out as brokerage charges.

Following points are to be kept in mind while selling your property;

• Make a list of all the special features of the property and try targeting the people who are looking for these features.
• You can mention the special landmarks and facilities which are closer to your property.
• Mention the proximity of IT sectors and commercial areas if there are any.
• It is always better to have a direction plan for your home.
• Spread the word about your willingness to sell the property among your acquaintances and other people.
• Advertise the property in various communication mediums.
• List your property for free in various real estate portals.

Choosing the right real estate agent: It is very important that you think twice and seek people’s help before choosing a reputable real estate agent. An agent has all the detailed knowledge about the real estate field; perhaps it will help you a lot if you are aware of the basics. There are various factors which should be considered while choosing a proper real estate agent. Few of the points to be considered while choosing real estate agent are;

• Reputation is the key factor in looking out for a good real estate agency. Go through the list of properties they deal with and the kind of services they provide. Before choosing the agent you should check the agent’s qualification, experience and the reputation.
• A real estate agent must have a legal license to run his consulting service. This is the most important thing you need to consider while choosing a real estate agent.
• Before you hire a real estate agent or property broker, you must know their fee or charge. To avoid exorbitant charge or to avoid future disputes, discuss their broker fee or charge beforehand.

Know the market conditions: Before you plan to sell your property, you should know the appropriate market condition or your property value. You can seek the help of a market expert or online real estate websites like CommonFloor.com and get information on the present market situation and new trends.

Price your property well: It is very important that you do a prior research before you plan to sell your property. Knowing the actual market value based on your locality will help you in fetching a better price. This will also give you an idea on how much you should expect rather than just listening to the agent. Do a detailed research on the current market value of the properties. A better option is to arrive at a price that aligns with the current market conditions and convert your property into cash.

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