Six million homes were sold—and bought—in the U.S. in 2019—and while the decrease to 4.8 million was a direct result of the pandemic, the real estate market didn’t suffer much.
However, that doesn’t mean that the real estate market is easy to tap into—because you could be making the following mistakes.
Taking Help from the Wrong People
Yes, that uncle of yours seems to know a lot about houses and a lot about California, but are you sure his advice is better than a professional real estate agent’s? Your mum gives you in-house medical advice, too—but we’re sure you’d trust a doctor’s advice over her. The same is the case with real estate investments. You want to take your cue and advice from people like home inspectors, certified appraisers, real estate brokers, and the like.
Discussing your plans and prospects with friends and family is good—but remember: they aren’t professionals in the field.
Going in Without a Home Inspection Report
Not having a home inspection report in your hands while you negotiate with the seller is one of the worst decisions you could make as a real estate investor. You have no idea about the condition of the property you’re about to buy—and you might end up paying more than you ought. In addition to that, you might have to pay extra for any repairs that need to be taken care of.
Doing your homework before putting your money into a seller’s hands is imperative. Do you know the market value of the property or of similar properties? What’s the neighborhood worth? Is the plotting adequate? Are the thoroughfare conditions worth the price?
You want to have everything down to the T before you pay up.
Not Working with a Licensed Home Appraiser
If you’re selling, you might think—hey, what’s the point of working with a home appraiser? Those are only for refinancing and mortgage lending purposes, right?
Wrong. A home appraiser can be of great assistance to you in determining the right price for your property. They can tell you whether or not your house is priced just right—they can tell you if the property is over-priced or underpriced. When you work with a home appraiser, you know what you’re getting into—and you know what you’re getting.
The report that an appraiser formulates for you contains every minute detail regarding the property in question—from the plot size to amenities and from square footage to the thoroughfare conditions around. You know exactly what your house is worth and why—which makes negotiations easier with the buyer.
Not Requiring Appraisals as a Mortgage Lender
It’s worse if you’re lending money to an individual to buy a house on mortgage and not getting a Home appraiser to determine the property value. You should take this step-in order to protect your investment and safeguard your money.
Looking for a Certified Appraiser?
Submit the online order from Torlai Appraisal Services online or get in touch with us right away to minimize any California real estate investment mistakes you might be making.