Getting a good real estate deal normally seems like a miracle but getting all the ingredients right can result in a great deal. There are many ingredients that need to mix together to get a good deal.
The location of the property is crucial, as it will also determine the resale value in future if you have to sell it. If you want to start a cash flow from that property, then you can rent it out. If you have taken out a loan for that property, you can make your installment payments from your rent receipts. Do a proper research of the rentals going on in that particular neighborhood before buying that property and putting it up for rent. Have a backup plan ready in case the rent receipts are not upto your expectations and you end up with a negative cash flow.
The condition of the property in question is very important. The property should be in good condition so that you do not end up paying more on repairs than the actual price of the property itself. Get professionals to check out the physical condition of the property and make a list of the immediate repairs, if any are required to be made. Negotiate this with the seller as to who will foot the bill for these repairs. If you have to pay those bills then negotiate a higher amount from the actual quote since you will also be spending your valuable time to fix things.
The purchase price of the property will determine as to how good a deal you have. Do not get emotionally attached when you negotiate a deal. Do your research about the value of neighboring properties and their appreciation before you negotiate with your seller. Keep different options open while negotiating. Get a trusted real estate agent and attorney to negotiate and also to do the legal paperwork upon completion of the deal. If you plan to rent out the property, again you will require experts to handle the lease agreements and evictions.
The way in which you have bought in money will also determine how much you make out of the deal in the long run. If you have borrowed from banks, then you will have to pay interest on that loan which you would save if you had your own money to begin with. Your holding power will also come into play if the value of your property goes down after you purchase it. This could be temporary until the markets pick up but it should not put you in a panic or a financially critical situation.
While selling off the same property in a hot market, conduct some research about the upward trends in the market. Calculate the amount of profit made after the deduction of your expenses and if the amount is substantial, go ahead with it. Again, follow the same procedure of hiring reputed real estate agents and attorneys to handle the paperwork. Take expert advice before selling the property and also trust your gut feeling on the timing of the sale.
So getting a good real estate deal depends not only on the property price, but also the location, condition and even the timing of the deal. When all these ingredients mix together in right proportions, you can get a good real estate deal.
