4 Things You Can’t Miss Before Sealing The Deal
In order to reap the benefits of a real estate deal, an investor must monitor several factors all the way until the closing. While some may be obvious, others seem minor. More often than not, small things make a difference between a substantial profit and an unfortunate loss. A real estate deal is like a game of chess. Each decision you make along the way can influence the outcome. Knowing the difference between things you can overlook and things, you must pay close attention to can help you earn more than the competitors do.
Inspect The Property Diligently
Both buyers and sellers prefer fast real estate deals. However, inspecting a house in a hurry may lead to unfortunate blunders by the closing time. Your goal is to make the inspection as fast and efficient as possible. Even if you have time limitations, you can make a proper inspection using the following checklist:
- Outdoors – Landscaping, roof and foundation condition, driveway, fence
- Layout – Check out that the house/apartment really has everything that’s listed (such as the number of bedrooms, size of the rooms, closet space, etc.).
- Electricity – Are all the appliances/lighting working properly? Electricity problems are costly and can shave a substantial amount off the price tag.
- Plumbing – Same as with electricity, this is a costly component. Make sure everything is in order in the bathrooms and the kitchen.
- Basement – Checking out the basement can help you get an idea about the quality of the home’s foundation.
As soon as you’ve done a close inspection, you can proceed with evaluating the cost.
Perform a Pest Inspection
Pests can substantially decrease the value of a home. However, they aren’t always visible. Pest inspection takes more time than a simple walk-through but it’s worth your while. Since even a small infestation can turn into a disaster with time, it’s vital to find it before closing a deal. A seller is responsible for eliminating the pest problem or decreasing the cost because of it.
Check Out The Title
Doing all the work only to find out that the property’s title is not in order is costly and downright unfortunate. That’s why one of the first things you should do when considering a deal is pulling a title. It may be expensive and seem unreasonable to other parties. However, it’s much better to spend money on the title matter than to invest time and money in a deal, which can never come through.
By checking out the title, you are protecting yourself from finding out about such things as unsatisfied mortgages too late into the process. In addition, it’s a great way to see if the seller is truthful about the state of the house. If you catch the seller on a lie or inconsistency, you’ll know to be careful with all his or her information in the future. The amount of money it takes to resolve such problems should be factored into the home’s price.
Be Ready To Pay
You should always be sure that your finances are in order to make a payment once the deal is hot. Otherwise, you won’t just lose the property, you will look unprofessional. Make sure that all the paperwork is ready and submitted to the lender (if any) on time.
In case something goes wrong, you can count on one extension. When the deal is almost closed and the clock is ticking, you don’t want to be on the verge of losing it due to some silly mistake.
Real estate investing is complicated and profitable. Make sure you keep an eye on the important things all the way until the deal is closed.