Real associates, or real estate business associates, have become an integral part of property transactions involving people who are new to property business. They act as intermediaries between buyers and sellers. For a buyer, a real associate provides many services such as finding houses, inspecting the house, and carrying out valuation.
One has to consider many things before approaching real associates. Seeking their service is the first step in the last stage – that is, the actual process of purchasing the house. The following are some tips for preparing before purchasing a house.
Why People Buy Houses
Most people who approach real associates for buying houses fall in one of the three categories. People in the first group want to buy a house because they want to reside in a house they can call their own. They may have been living in a rented home or in their parental home. In some cases, they may be planning to sell their existing houses and therefore might want new homes. The second group comprises people who want to buy a house and rent it out. They may already own a house and want to buy a new house purely as a source of steady revenue. The third group comprises people who treat a property as an investment vehicle. They buy a property when the prices are down and sell it when the prices go up.
Do You Need A House?
Now, which category do you belong to? If you belong to the first category, then you have every reason to approach one of the prominent real associates in your town. However, make sure that you are going to live in the house at least for four or five years. For example, if your job involves frequent transfers, it is better to wait for some more time.
If you want a house as a steady stream of revenue or as an investment channel, ensure that you have sufficient finances to back it up. Purchasing a house may be a good investment option. However, it is not worth it if you do not have the income to support it.
Make A Budget
You need to make a realistic budget for purchasing a house. It should neither be too small nor too large. Too small a budget will result in an inconvenient house that will nag you as long as you live there. Too large a budget will result in heavy financial burden, which may result in the eventual loss of the house through foreclosure. Many experts are of the opinion that ideally one should opt for a figure that is two to three times more than one’s annual income.
As any one obviously knows, location is an extremely important factor – both for convenience and for resale utility. It is generally regarded that places that have good educational institutions are the best locations. Ideally, one has to figure out a suitable location to own a property before one approaches real associates.