So you have decided to buy a property and it is a very big deal if you are new to real estate business. Real estate is a market with many ups & downs and a lot of procedures need to be followed and checked before any kind of agreement. First of all, the buyer needs to do research on the property, documents, market trend and market value of the property. Here I am going to define some common mistakes that buyers male first time and also going to tell you how they can be prevented in the first place.
Assuming You Can Afford
First and the most important factor is “money” when you are planning to buy a property. At first, you need to define your budget. Most of the buyers do not look into the long-term when buying a property in installments. And if you want to buy a property in installments please check your saving as the income may change with time and there is a possibility you can’t afford the installments in future. So, do not buy a property on an installment that will take a large portion of your income. Research the property which is available in smaller installments and that will help you to fix your budget and you will also be able to save some for future.
Not Checking the Market Trends
This is the most common mistake by buyers. They don’t research deeply on the market trend of the area they are planning to buy. If you want to buy a property in any area it is good if you go through the last year performance of the project to see how is the overall property market and also is there a market interest in that area. It is not necessary that every each and every project of a famous company succeed.
Not Confirming Legal Documents
Before investing in any project please ensure that all of the documents are legal and approved by authorities and this will prevent losing your precious money in future. Sometimes, due to legal process project stays for a long period and it affects the investor badly and there are chances of losing money. The very first thing is to check the NOC of the property from the relevant authorities. For Islamabad, it’s the CDA, for Gwadar, It’s the GDA and for Lahore, it’s the LDA. Authorities have all the records of the property which is legal or which one is illegal.
If you are a short-term investor, please double check all the legal documents and the status of the area. And also the first-time buyer should avoid longer investment project as they do not have much experience.
As a first time seller, you don’t have much information about the real estate business. Sellers have some margin regarding negotiation. Tell your final offer to the seller and also define the expire time of your final offer. This will show the seller that you are not lowering your offer and if they want to sell they have to do it according to your demand.
Not Waiting for the Right Time
If you are buying a property for investment, you have to define for how long you need to hold that property and when you need to sell it. If you are new to this field you need experts or consultants who can do market research and tell you about the right time. Real estate consultants tell you the time when to sell your property.
Above are the common mistakes by the buyers and they need to avoid it. The main thing is awareness and research and always discuss property factors with the property experts and agents.