2023-05-28 17:29:31
The purchase of real estate can be highly beneficial in the long or medium term for their owners. For this reason, it is essential to have adequate advice to make the right decisions during the buying or selling process. How to choose a real estate agent? How to get a mortgage? How to evaluate a property? How to negotiate a purchase contract? Next, I will provide you with the answers to these questions through a complete guide that will help you evaluate all the relevant factors when considering the acquisition of a property.
The purchase
When you want to make a purchase, the first step is to define a budget, to determine if the operation will be carried out in cash or through financing. There are some fundamental rules to follow when acquiring a real estate opportunity:
1. Make sure your monthly payment or loan fee doesn’t exceed 30 percent of your income.
2. Consider the interest rate of the loan and calculate how much it equals in terms of monthly payment and duration of the loan.
3. Reserve at least 10 percent of the cost of the property to cover deed expenses and taxes at the time of acquiring the asset.
The first step is to define the budget.
The building
It is important to review its characteristics in detail, such as the type of construction, its age, location, density, provision of services, legal status, as well as the square meters of both the land and the construction. Furthermore, it is essential to assess the current development of the area, also considering its potential for expansion in the future. These aspects will allow selecting the best option available in the market, taking into account the needs and expectations of the client, as well as the best location of the asset.
When evaluating a property, two factors are taken into account that add up at the end. The first is the commercial value of the land and building. The second, which implies a more detailed analysis, is the valuation carried out by a expert appraiser. The expert uses metrics and considers various aspects directly related to the construction, such as age, finishes, improvements and extensions that the property may have.
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Consider the current development of the area and the possibilities of future expansion.
real estate agent
It is advisable to select a real estate agent with experience, a good reputation and an established track record. In addition, it is important that the agent has a protocol that guarantees the protection of both the buyer and the seller during the transaction.
An experienced real estate agent should ask at least the following questions: What type of property would you like to acquire? Are you looking for it as a heritage investment? Looking for a investment to play with capital gain as a pre-sale and thus make a profit to later sell it? Do you want to have passive income through rentals looking for a good annual return on investment?
Your agent must have a protocol that guarantees the protection of both the buyer and the seller during the transaction.
Financing
It is essential to have the highest possible down payment, since this helps to reduce the monthly payment of the mortgage loan. In addition, it is recommended to consider the option of hiring a mortgage broker with experience and trust, who will be able to offer the best financing alternative. Mortgage brokers have detailed knowledge of interest rates, as well as hidden costs or additional charges, such as commissions and insurance. In addition, the broker will help determine the appropriate monthly payment based on the client’s expenses and income.
A mortgage broker will help you find the best financing alternative.
Mortgage credit
To obtain a mortgage loan, it is necessary to have proof of income, not have negative records in the credit bureau and meet the minimum (adult) and maximum (under 65) age. It is also required to have the down payment requested by the bank, which is generally at least 10 percent of the value of the property, and maintain a good credit history, among other requirements.
A fixed-rate mortgage contract is recommended and a comparative analysis of at least three options of financing.
It is important to note that if the property you wish to purchase is in high demand, it is crucial to act immediately and submit an offer to secure the purchase. This is achieved through the signing of a legally valid contract for the separation of the property, thus guaranteeing the acquisition.
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Check out at least three financing options.
Negotiation
When looking to negotiate a purchase contract, having various options available can be of great help to improve the price of the property. Likewise, it is essential to have a solid knowledge of the market in terms of the future development of the area and the potential for capital gains that it can generate. One of the key factors for a successful negotiation is have the funds necessary to make a cash payment for the total investment. In this sense, having this capacity offers significant advantages. The experience of the real estate agent plays an important role, since he has techniques to facilitate a successful negotiation and reach a mutually convenient agreement.
Real estate agents have techniques to facilitate negotiation.
Remember that investing in a property is a great asset to create a patrimony that provides economic support in the future and contributes to diversify income in the long term. It is a safe way to invest and ensure a stable financial future.
Guillermo Aguirre Garcia.
Saint Elizabeth Building
Blvd. Nazario Ortiz Garza No. 2060 Piso 9 Of. 913.
Colonia Tanque de Peña, CP. 25253
Saltillo Coahuila
Email: inmueblesaltillo@gmail.com
Telephone: (844) 118 55 55
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