You can buy real estate on Craigslist, or straight from a Facebook page. You may even buy one from someone you know or from a friend of a friend of a friend. There are, indeed, a lot of ways to buy a new property directly that the thought of not tapping a friendly real estate agent can be taken out of the picture. But is it wise?
Not As Simple As You Think
In this day and age, buying a property without the help of a real estate agent may sound appealing. You can strike a deal on your own and simply be done with it. But buying real estate is not as simple as going to Target and picking out the latest HDTV or a pair of laced-up boots. It requires due diligence and tons of paperwork. With the staggering amount of money involved, it is only imperative that you understand the common pitfalls people encounter when buying a real estate property without the aid of a realtor.
Not Reading or Understanding the Fine Print
One of the most prevalent mistakes in buying a property on their own is not thoroughly reading and digesting the fine print of the purchase contract. As a rule, purchase contract is essential on real estate transaction to warrant its veracity and legality. There is no room for verbal agreements in a real estate buy-out, even when dealing with a family member or a next-door neighbor-friend. A purchase contract is usually prepared by the seller with the aid of a lawyer. If you have no idea about legal jargons, consider hiring a lawyer or have a real estate agent do the dealings for you.
Not Safe for Your Earnest Money
In most real estate transactions in the US and the UK, earnest money deposit is usually given to secure or put the property on reserve for you. Some people call this reservation fee while others call this initial down payment. This can be very misleading and can put a huge dent on your financial coffers should the deal turn out to be a dud. To guarantee that you put your money right where it’s due, an escrow company is a wise option but having a real estate agent to handle it for you would be so much better as they can easily connect with a title company to keep it safe.
Big Room for Complacency
Unless you have complete firsthand information about a real estate property, it is imperative that you do earnest ocular inspection. Some buyers, however, in their eagerness to buy from someone they are “familiar” with tend to be complacent. A real estate agent usually gives full disclosure on a property to protect their reputation in the market. Through them, you can gather “black-and-white” information about the property and assess it from there.
The risks can be quite high when buying real estate on your own. This is even more so when you rely so much on buyer-seller trust and relationship factor. When it comes to money, remember these words: it is a jungle out there and you, the buyer, are always the unsuspecting prey. If it is a real-deal hassle-free investment you want, have a professional and trustworthy real estate agent to seal the deal for you.
