Buyer Beware...Look it Over

Buyer Beware Many people get excited when buying their first real estate investment. They get caught up in the idea of making millions or being a landlord. They fail to realize an important rule in real estate. This is actually the first rule any smart investor should learn. It is buyer beware.

Everything is not as it seems. When you find a good deal, determine just how good it is. One that seems like it is too good to be true may be just that. You must be extremely careful when investing in real estate. This holds true whether you are buying your own house or one as an investment.

The law anywhere states the real estate agent must reveal any known defects of the property. This means if it floods or the roof leaks, you must be told. If there has been major structural damage you must be told. Problems can arise because of this.

The first problem is the seller may not have been completely honest with the real estate agent. The agent may have told you about the roof and not mentioned the basement. This is most likely because he or she did not know about the basement. Not every seller is as honest as they should be. They want to sell their home and will withhold information they may feel is detrimental to the sale.

The other problem you may run into is if you are not dealing with an agent. The seller may tell you there are no problems at all with the property. They will forget to mention the fire that nearly devastated the entire house last year.

The best way to determine the true nature of the beast is with some investigating. First you can hire an inspector to check the stability of the house. He or she can find if there are any cosmetic repairs which have been done to cover major problems. The plumbing will be checked. The wiring will be examined. The foundation and the roof will also be under scrutiny. This is what you want before buying any property. Some repairs are simple. There are others which can cost almost what you could make on the deal.

Many local laws state that once the buyer takes possession there is only a certain amount of time they can make a claim against the seller for damages. This means that if you buy a house during the middle of the summer you may not find the basement leaks or the roof leaks until the middle of spring. The time limit ran out and you are stuck. Had you gotten the house inspected you could have been warned about the problems before buying the property.

The buyer beware rule should always be observed when investing in real estate. You can check out police reports for the address. This can tell you pertinent information the seller neglected to tell you. Information about fires or other damages may be able to be obtained from police files. Certain areas have the ability to search addresses to determine things which have happened. If you find the house has been broken into every six months for two years, you may not want to invest in it. The history of the home may come as a surprise to you. The old saying forewarned is forearmed is the best advice when it comes to the "buyer beware" rule.

For more articles on Real Estate click these links:

  • Common mistakes Real Estate investors make
  • Buyers beware ideas on what to look for
  • How to select a real estate agent
  • No money down... fact or fiction

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