How To Buy A Property – Tips On Inspecting Properties

October 9, 2010 By

The first thing you need to do is to avoid any big surprises if you might be taking into consideration a brand new real estate purchase, hence getting a specialized inspector for properties could reduce a lot of the unwanted surprises about your prospective residence early in the home buying process.

Always remember, though that you’re not necessary to conduct an actual home examination prior to the signing the preliminary contract, thus it is probably best to understand as much as possible about the condition of the property through an straightforward discussion with the seller and also performing your own ‘mini’ inspection by which you could check for standard structural defects or potential problems.

Many sellers will probably be open to having you check the house before you sign the preliminary contract, and this gives you a leveraging influence while bargaining the sales cost. The book ‘Smart Consumer’s Guide to Home Buying’ (Barron) really encourages all potential homebuyers to put together a checklist and note every problem and areas of concern before the contract signing. “If you are thinking about buying a house that will need renovation or upgrading, the more value will be derived from your mini-inspection,” explains the authors of the book.

Think about creating an inspection list for a property inspection survey in order to carry out a thorough of the property and also note down the appearance and overall condition of the said real estate. Here are some crucial areas to cover:

Find out about how old the home is – you will want to ask the seller specifically when the house was built, how many times the property has been renovated, and check if there are any architect or engineering plans on hand.

Check out the groundwork for potential problems – check for significant cracks or visible water conditions in the property or in the basement. Ask concerning flooding and issues that are weather-related which have taken their toll on the property in previous seasons.

Examine the interior for potential problems and other damages – you’ll have to make sure that the doorways are functioning properly and also that all the rooms’ walls and partitions are flat, even and free of cracks. Take note of anything that may have to be repaired immediately and make sure you also take pictures of potential problems that particularly needs repair. You’ll have to check for problems of odor or molds and ensure all water entry areas are crystal clear and working.

Check out the external details of the house for damages and potential problems – do all the doors and windows have sufficient insulation? Are they functioning well? Make sure the doors and windows don’t have breaks as well as any noticeable damages.

Review heaters and air conditioning appliances – inquire regarding the average cooling and/or heating costs over a year, and also find out how long it has been since the appliances were installed. Sometimes, you may need to get a new heat and air conditioning appliances.

Aside from the actual examination survey report, you may consider taking images and also short video clips with a digicam so you can go over the actual inspection in more detail at a later date. The extra footage might provide you an upper hand during the negotiation process with the sales agent.

About the Author: Alexandria P. Anderson is a Minnesota Real Estate agent that helps people to find and purchase Condos in Minnesota and other properties in the Twin Cities of Minneapolis and St. Paul.

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What Does Investment Really Mean?

August 26, 2010 By

The word “Investment” can mean different things. If you trace back its origins, you will find it comes from a Latin phrase “vestis” which translates into “garment”. If you look a little closer at the phrase, you find its actually referring to putting money into one’s pockets. When we invest our time, money and recourses, sometimes we are just making a shot in the dark in hopes of a big-time pay off. But of course there are risks when you take shots in the dark. Sometimes there’s a hint of something spectacular that just ends up blowing up in your face. Let’s talk about the two ways to go about an investment.

The first is a Real investment, which deals the acquisition of tangible property, such as an automobile or a house. The other type of investment is the acquisition of Financial assets, such as money in a bank, or stock market shares, that one can trade or sell at will.

But from an investor’s standpoint, one worries only about the ‘recovery’ of one’s investment, and hence the classification would be on the basis of whether his or her investment earns him money, or ends up with him going ‘belly-up’ if you could use the expression.

So how do you find balance in the investment world? What’s the secret between success and failure? Well, practice makes perfect. The trick is to be able to invest in assets that have the best chance of success. We say “practice makes perfect” because sometimes things don’t always go our way to do circumstances beyond out control. Developing your skills to analyze the situation at hand and make all the proper movements is what separates the winners from the losers.

One often hears or reads about investment guaranteeing immediate results. I would add that to redundancy in wording. A key in investing is patience and persistence. One cannot expect his input to immediately produce returns. A parallel can be drawn between the lives of an investor and a mosquito. One cannot expect returns too soon; even a mosquito doesn’t get a pat on the back until he’s nearly completed his task.

While I was writing this article I came across some websites that had tips on successful investing. Isn’t it funny that with all this great information out there that there aren’t more successful traders in the world? Maybe it’s because you can’t become a successful investor by reading about how someone else supposedly became one. Your best bet is to get out there and test your own waters so you can achieve your own balance. With the way technology is growing, it will only get easier to keep tabs on your investments, but when it comes down to it, will you adapt to the technology and raise the bar for your competition?

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Getting A Home Inspection Prior To Buying A Investment Property

July 23, 2010 By

Most fixer uppers are homes that usually need a number of home repairs that generally do not require special knowledge or expertise on your part, as the homeowner. Fixer upper homes can be excellent bargains when the “asking price” is significantly lower than comparable homes nearby but in good or excellent condition.

Fixer uppers needing a cosmetic fix-up can be a great investment property. Most need some repainting outside and inside (paint can do a lot of wonders), floor refinishing or new carpets, some new lighting fixtures, little repairs, complete cleanup and landscaping.[I:http://homestyleteam.com/wp-content/uploads/DocSchmyz6.jpg]

If the home necessitates massive repairs such as electrical and plumbing problems that usually are expensive, it will slash your profit back or worst, eliminate it.

Before purchasing any house , a professional home inspection should be completed. The inspector can provide you an accurate idea of what existing problems the home has and what repairs are needed.

Here are frequently found fixer upper defects that might need your attention:

Roofing

Insulation

Plumbing system

Electrical system

Central heating

Central cooling

Water seepage

Structural (Most of these defects requires expensive repairs especially when talking about the value these repairs will return upon resale.)

Most often, major defects go unnoticed because fixer upper buyers usually can’t see the inside workings, hidden out of view or behind walls. When buying you a fixer upper you need to turn over a few stones.

A broken or damaged “heat-exchanger” in the heating system, faulty wiring, termite damage, lead accumulation, as well as asbestos insulation are common physical flaws that you can’t see immediately and need to be corrected before a re-sale.

Indications of these problems are as follows:

Moisture stains that can be found on ceiling and walls could mean plumbing problems.

Separations between wall and floor specifically for outer walls could mean structural problems.

Sawdust piles near woodwork or wall corners can be an indication of termites.

A home inspection from a professional

The average professional home inspections can cost about 200-325 dollars depending on the kind of property, square footage, etc.

When hiring a professional home inspection of fixer upper houses, it is wise that you obtain quotations first from several competing companies. However, the lowest bidder shouldn’t be immediately given the job; aside from the price, you must inspect the “quality of service” they offer as well as the company name. It is important to choose a company with a good reputation.

Several home inspection companies have some kind of computer-like machines which can supply inspection reports and descriptions instantly then the company adds their “pre-printed” sections which are very helpful for you in order to understand the fundamentals of repairing, fixing and replacement.

The most important part of a home inspection is that the inspector gives an entirely impartial appraisal and assessment of the house, inspecting everything carefully from electrical systems, plumbing to structural to make certain that the fixer upper house you are purchasing is sound.

Professional home inspectors can make certain that all major systems (air conditioning, plumbing, furnace) are working properly or they can pinpoint defects to you because these kinds of repairs will cost you a great deal of money.

However not all major repairing problems automatically indicate that you shouldn’t purchase the fixer upper home, because they can and should be added in the home’s price negotiations.

A good fixer upper seller or realtor will and can factor in said considerations or concerns and you possibly can purchase the home for even less if you put it clearly that you will be responsible for the repair or replacements. Just be careful that you don’t get tricked. Never take anybody’s word that the plumbing, the furnace or the electrical have no problems at all; you have to make certain.

Sometimes walking away from a “deal” is the best option. Perhaps it is due to location or a disagreement on price with the current owner. (Repair costs are almost always a sticking point)

In order to really make a good investment in a fixer…you need to find the hidden “information”. Most of the time a seller will not go out of the way to tell you. In some cases it isnt done out of spit…it might be information the current owner isn’t aware of themselves.

Doc Schmyz has invested all over the US. His free website shares Real estate investing information for all over the US. Findreal estate information by state

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