Investing in real estate is more than just finding a property and purchasing it. There is considerable research that needs to be done before the purchase is final. Without proper research, you could end up making a bad investment. To help you with your research, here are a few tips to use.
Check Out the Surrounding Area
One of the biggest mistakes you could make is only focusing on the investment property you want to buy. You should also research the surrounding area. The area in which the property is located has an impact on its value and how likely it is that you can resell the property for a profit in the future.
While assessing the area, pay close attention to factors such as types of nearby businesses, the access to transportation, and the overall aesthetic. If there is new construction nearby, you need to even take this into account. The construction could have an impact on the amount of traffic in the area and the noise level.
Research the Deed
The deed can provide you with a lot of information about the property you want to purchase. For instance, you can learn if there is a lien on the property that could have a bearing on the sale of it. You can also learn if there are other owners who you were not aware of prior to researching.
You can also learn how much the investment property sold for in the past. You can use this information to adjust your offer on the property if necessary. You could potentially save money if you know what the property has sold for in the past. Depending on the county in which you live, there might be additional information available at the registry of deeds that can help with your purchase.
Know the Zoning Limits
After you have purchased the investment property, you might want to make modifications. For instance, it is not uncommon to want to expand. However, there might be zoning restrictions in place that would prevent it. To avoid this, you need to research the zoning limits for the property.
While researching the zoning, you need to go beyond knowing the restrictions for expanding. You also need to know if you can convert the property or build to another level, if necessary.
Your real estate attorney, or one like John M. Ogden, can help with researching the property. Involving your attorney early in the purchasing process can help to ensure you are not missing any important factors.Share