When you are purchasing real estate, whether it is for your own personal use or for a commercial investment, you should know as much as you can about the property and the reason for the sale. According to the National Association of Realtors, over 60 percent of buyers use many different sources to learn more about a property. Although your buyer's agent may be able to help you do some of the research, you can certainly take responsibility for some of it. This information can help you in negotiations.
How to research the property
You probably drove around the neighborhood, but that only gets you so far. One good way to find out more about a property is to explore it by foot. Go to a city council meeting or town hall forum. Explore the local businesses and ask about development in the community. This information can tell you about the future market potential.
Ask why the seller is selling. Public recorded information, such as an impending foreclosure, must be disclosed. If the reason is not public knowledge, you may need to look deeper. But once you know if the seller is trying to move for a job transfer, you may be able to get a better price.
Find out how long the home has been on the market. If the property was just listed, there may not be much negotiation room on the price. However, once it has been on the market for a few weeks, the homeowner might be more open to negotiations.
Evaluate other properties in the area that are similar to the one you want to make an offer on. Even if you do not like the property, it can help you assess your real estate situation and make the right offer on your new home.
Assistance when buying a home
As a buyer, you should also ask your agent not to reveal much about your situation. The one with the superior knowledge has the negotiating power in the sale. When you reveal your emotional attachment to the property, it gives the seller and the listing agent more power to know where you stand in negotiations.
Even if you have a buyer's agent, you should always get legal counsel when signing any documents or contracts relating to the sale of a property. It is just another layer of protection for your rights and responsibilities when making an investment of that size. Now that the Florida economy is recovering, home sales are expected to increase. Talk to a real estate attorney who can help you make sure you complete your due diligence.