It is certainly true that mortgage interest rates continue to be at an all time low. Plus, although they are rising, home prices are still affordable. However, it is important to understand that these two factors do not automatically make any property a good purchase. Yes, we are currently in a buyer’s market. However, don’t buy without exerting due diligence. There are various red flags that will tell you not to buy a property. These problems are not always significant enough to tell you not to buy, but sometimes they are. Two things are of true vital importance, however.
First of all, you must be wary of the “fixer upper.” It is certainly true that these properties seem very interesting because they are so affordable. Often, we believe that the things that need fixing are things we can do with our own DIY skills. The truth is that most of these things can only be fixed by qualified professionals. The price you pay for these professionals may be a lot higher than you had budgeted for initially. Next, you must be careful with properties that have modifications made that are clearly DIY. Although a DIY job can look great on the surface, it is likely that it actually has a whole lot of problems.
The second key factor to look into is for you to figure out whether you are looking at a foreclosure or short sale property. Yes, you can get an amazing deal on this. However, many of these properties are in terrible condition and it can also be a sign of trouble in the neighborhood itself.
The bottom line is that you should never purchase a property without having it professionally inspected. With the information above, you should be able to tell whether or not you might want to hire a professional inspector, or whether it is a clear no on the purchase. If you find that there are indeed serious problems with the property but you don’t want to simply walk away, you could consider asking for a large discount so that you can pay for repairs. Do also consider the opinion of your home inspector. Their goal is to make sure you get a good deal on a property.