3 golden rules for buying property, in any market conditions

3 golden rules for buying property, in any market conditions

The banks are eager to lend, homes are selling more slowly and owners are keen to negotiate, so now is certainly a good time to purchase, but that doesn’t mean you should throw caution to the winds. There are some golden rules for home buyers and investors to follow in any market conditions and they risk getting stuck with a bad investment if they diverge too far from these.

1. Negotiate price

For a start, buyers should by all means try to negotiate price on a favourable property, but should in most cases keep away from the home that’s on offer at an exceptional low price. It may appear to be the opportunity of a lifetime, but closer inspection before you snap it up will probably show that it is in need of major repairs that the owner cannot afford, or is heavily encumbered in some other way.

2. Buyers should focus on location

There is a much greater variation of suitable locations these days than there used to be, including properties close to decentralized commercial hubs, those located in self-contained estates, as well as those in the tried-and-tested central suburbs, but you should still focus on those where there is good demand and prices are rising, rather than being tempted to buy a property in a less desirable area just because it is a bargain. Falling into that trap is likely to cost you a lot more long term, than the savings you make on the initial buying.

3. Do your homework on pricing            

Do your research on pricing before making any offer. Get help from an experienced local estate agent who can provide you with a comparative market analysis (CMA) showing how many sales there have been in the area recently and the actual selling prices of these homes, as well as the length of time they were on the market and what their original asking prices were. Never be ashamed to walk away from a property if the results of your research are less than beneficial. As with any type of investment, professional advice is very important if you want to expand your potential returns, but it is also important to keep a cool head and make your own decisions.