Just like when you are shopping for personal items, so it is to a property. It is helpful to do the important checkups before buying a house to intend to. What makes it necessary is that you don’t want to be surprised at what you will likely see that doesn’t look good thereafter when the property will be yours.
I see it as important checkups before paying for the house. In other words, it is also referred to as due diligence. In this article, I have lined up important checkups before the house is yours.
The following are 4 important checkups before buying a house.
#1. Category Checkups
At first you have it in mind that you want to buy a house. Normally there should be some important priority that will quality the property before you. Some of the per-considerations can be:
Is this house in line with my needs?
if it should be an investment property, will it generate the most cashflow and be rent-ready once the property is yours? How can you improve to increase your cashflow?
Does it fit to your residential requirement? Will it lead to other convenience in your daily activities?
(remember, this are like a questionnaire that has to clarify your decision) The agent is there to answer your question but at first you have to come up with your own answers.
In addition, do some observation yourself or get someone to do that for you. The first impression sometimes helps to set the tune of how you will operate. And the tip of what you are about to put yourself into. At this time, you’ve not made an offer yet.
#2. Legitimacy Checkup
This is the verification of the genuineness of the property. At this point you will be required to check the documents of the property. Then investigate with the land registry department of that state to see if the property is owned by who claims to be the owner. You have to perform this checkup at least before you pay or else there might be a high possibility of fraud.
This stage should the last stage, after carrying out all other checkups. It very compulsory even if you think you know the owner. Remember knowing is better than verifying.
“Trust but Verify”
#3. Physical Checkups
The third important checkups before buying a house consist of inspecting the building itself. Checkup the components of the building. The construction integrity. If this is done, you will not be surprised at what you will see thereafter.
One of the advantage of doing this important checkups before buying a house is that it contributes to your negotiating position. But you are not expected to make business decisions emotionally. It will only help to slash the asking price according to your terms. In How to inspect a house you want to buy I have written in details of what to watch out for the bad signs which will actually deep hands into your pockets.
#4. Account Checkups
This has to do with the record of income the property has made (if it is a commercial property). The utility bills (Paid and outstanding) that has to do with the property. Ask for this payment receipt or evidence of payment. A good property owner will have these information well documented.
Just make sure there are no outstanding payment that is waiting for you. In case of no documented information, ask questions to derive answers.
With the above important checkups before buying a house, you’re now equipped. Don’t stop here. Continue to search for more information as you have the opportunity to. From this information in this article, add and/or build your own knowledge base from taking part yourself.