A bargain sometimes costs more than its face value – especially when it comes to property buys.
The weak U.S. real estate market has enticed local and foreign investors alike to plop their money in distressed houses, but legal hassles and longer closing times can catch these investors off guard. Even factors like local schools, crime rates and other distressed properties can make things even more complicated.
Even buying a property that is not going to be the primary residence will get you paying higher property taxes.
So what’s the average Joe and Jane to do? Take things slow, for starters.
Being “detached” from the whole investing frenzy and taking a long, hard look at everything about a property will help you make a smarter decision. This also helps you scope out whether the price of that house you’re eyeing has bottomed out already or is set to go down even further.
It also helps to get a reputable broker that’s intimately familiar with the area you’re looking to buy into. This is especially helpful if you’re planning to buy properties in areas you are not completely knowledgeable about.
Just be careful not to get a deadbeat agent or one who thinks you’re “just small fry.” Interviewing the agent – especially on local knowledge – will help you do just that.