We all know that interest rates are still incredibly low. Additionally, home prices are still low as well. However, don’t let this lead you into believing that any home purchase is a good one. The market is, at present, in favor of the buyer. However, you must make sure that you make careful considerations before you buy. There are plenty of red flags out there telling you to move away from a purchase. Sometimes, this means that you need to fix a problem, but at other times it means that you shouldn’t buy. There are two factors in particular to be aware of.
First of all, you must be wary of the “fixer upper.” These properties are often very cheap, which makes them very attractive. Many times, we believe that we can fix the problems ourselves. In reality, however, they are often things that must be done by qualified professionals. Qualified professionals are incredibly expensive and you may not have sufficient budget for that. Next, properties that have had DIY repairs can also be a red flag. People may have done a really good job, at least cosmetically, but the reality is that it may be saddled with problems.
Next, make sure you know if the property has been foreclosed on or is going through a short sale. Although it is true that these are the cheapest properties, they are also often in poor condition and in bad neighborhoods.
When it comes down to it, you are the only person who is able to decide whether or not to buy that property. But do make sure to exercise due diligence. Never purchase a property that you haven’t had professionally inspected. If any issues are found, it is up to you to decide whether you then want to step away from the property, or whether you want to use it as a bargaining tool to bring down the price. However, always be careful that you do not get tied into a money pit.