Many prospective property investors hear about buyer's remorse and imagine that it cannot happen to them. Of course, this is until the real estate agent hands them the key to the property and the regrets kick in. Buyer's remorse can have severe consequences, and not just the palm sweating, anxiety, or nausea. It can cost you your financial future. Here are some tips on how to avoid the buyer's remorse before you make a serious investment mistake.
Take time to research
The real estate market is a tricky one if you dive in without understanding what to expect. Before you approach an agent, do a little research on what is expected when purchasing an investment property. Researching on the current real estate trends in your area and property pricing can even help you negotiate a good deal. Don't go in blindly. You don't have to be an expert, but knowing the basics will help prevent obvious mistakes.
Learn to walk away
When you have the money and urge to buy an investment property, everything looks appealing to you. Have a checklist of what you want in the property you want to buy. No matter how good a particular property looks, walk away if it doesn't meet your criteria. Again, if you are not sure of what you want, it's best to walk away and come back to your agent only after you have figured out your needs. Otherwise you might make a purchase and end up regretting once you have signed the contract.
Get the property inspected
Property inspection can save you from making costly mistakes in your investment. Even if a property is new, having a professional inspect it is crucial in the buying process. The process entails inspecting the following aspects of a property.
- Structural integrity of the building
- Electrical, plumbing, security, and HVAC systems
- Indoor fixtures, furniture, equipment, and appliances
- Compliance with building codes and regulations
- Inspection of the grounds, lawns, and outdoor fixtures
The report submitted after a property inspection should give you the go-ahead to purchase a property or decline.
Have a solid purchase contract
Most property investors wait for the agent to present their contract so they can negotiate their terms from the seller's perspective. Prepare your purchase contract. Doing so will ensure that you are not sidelined and that most if not all of your interests will be met. You will be able to close the deal comfortably and as a happy investor.
Once you have signed a property contract, the deal is done and sealed. Avoid regretting your purchase later by following these simple tips before making any decisions on investment property.