Buying a Property? Ten Tips to Crack the Right Deal
Buying a home is everyone’s dream and one of the most important decisions of your life. It is possibly one of the biggest investments you make in your lifetime. Hence, it is vital to intricate details when you purchase a property. Following are ten tips you should look out for when you buy a home.
Do your research: Many people don’t consider doing a research before buying a property as it is a tedious process. However, if considerable background research is done on the potential property, the chances of a profitable purchase are significantly increased. Before making an agreement, check the neighbourhood, crime rates, age of the property, features of the property and other necessary factors.
Buyer’s agent:
If you are buying a property for the first time, it is advised to involve a real-estate agent rather than going for private buying. The seller might have employed a real estate agent to sell his property but being the buyer you also need information and guidance. The buyer’s agent should have thorough knowledge about the area, should be considerate about the buyer’s requirements and competent enough to negotiate on your behalf with the seller or seller’s agent.
Think long term: Before buying a property, you must know that real estate is a long term investment and you will have to bear the expenses such as maintenance charges, property tax and mortgage burden. So before taking the decision to buy a home, it is important to determine the financial goals and one’s capacity to remain invested for a longer period.
Demand information: You should demand for the disclosure of the complete information about the property from the buyer. This may include the information regarding electricity and water supply, materials used for building construction, municipal rates and maintenance cost. Be it good or bad the seller is ought to tell everything.
Compare market price: The seller might have tagged the property with the demanded price tag but it is always better to get the market price comparison analysis report by a real estate appraiser before making an offer. This will help you in analysing the right price of the property and negotiate well with the seller.
Agreement & allotment: Development agreement contains details regarding the terms and conditions on which the landowner has permitted the builder to do the development on his property. The allotment letter contains the clauses regarding builder’s liability in case of problems after possession or delays in construction situation, agreed price, construction and payment schedule. So, it is very important to demand for these agreements and get them checked by a lawyer.
Involve a lawyer: Legal documents are quite difficult to understand and sometimes have some confusing clauses. It is your right to get the agreement of sale reviewed by a lawyer, prior to signing it. To avoid any surprises consult a lawyer of your choice regarding the securing legitimate and finance documents.
Choose your banker: Your seller might have arranged a financier for you but it completely depends on you, from whom you want to lend the money to buy the property. Ask the lender to provide you the true value of the loan and the full details regarding the terms and conditions of the loan. Do a dual check to make sure there are no hidden charges involved.
Sale agreement: Once you have decided on a property that satisfies your requirements, the inspection done and got the finances right, read the settlement statement thoroughly to check if it holds any clause which dissatisfies you prior to closing the deal.
Final handover: Before releasing the final payment to the builder/seller you have full rights to inspect the property yet again. We advise you to hire an authorised personal to do a thorough inspection of the property.
Do not discriminate: India is a democratic country and all are considered equal, hence you should not get biased against the seller on the basis of his caste, religion, nationality etc.
