Buying real estate is a big investment in any market, and blindly agreeing to a purchase is never in your best interest. Any one factor could lead to some eye-opening changes, but you may not know until it’s too late. Whatever your reason for buying, there are a few simple questions you’ll want to pose before you see the deal through.
Real estate prices have been on the rise in the greater Sacramento area over the last seven years. Building permits are down, and the number of sales is rising. But before you jump in on a sale of your own, residential or commercial, you’ll want to make sure you’ve made your list of concerns and checked it twice with your realtor.
What’s the condition of the building?
Just because there aren’t holes in the roof, doesn’t mean it’s in great condition. Looks can be deceiving, and a realtor can help walk you through potential issues that may start as minor hiccups only to grow into big headaches.
What’s the status of the property?
You’ll want to know just as much about the property as the building itself. Past studies of the land can hold crucial information, like environmental impact reports and land improvement surveys. The details therein could affect what improvements you can entertain or possible costs you might incur in the future.
How does the future look?
Picking the perfect location doesn’t happen by looking at a snapshot in time. The surrounding area may be beautiful, but every part of town is moving in one direction or another, and it can have a big impact on property value and taxes in the future.
How is this area zoned?
If you’ve got lofty plans for your new property, make sure local zoning laws allow them. You can request that the zoning board make changes, but it may be a hard sell if you’re asking for a different classification than the properties around you.
What costs are in the deal?
The price of the property might be manageable, but extra costs at closing time can bump that number up a decent amount. See what expenses you can negotiate with the seller, like having them cover the price of inspection or making improvements before you take over.
Buying the right property to suit your needs is more than acting on static information. You’ll want to have a good idea of where things are heading once you own the property. The deal on the table may look great at first glance, but make sure you’re heading into the purchase with eyes wide open.