4 mistakes made by customers when buying real estate
Buying real estate is a very serious and important process, which sometimes can be accompanied by a number of complications. So, in order to avoid any mistakes, it is important to take into account every detail. If you have decided to make the purchase by yourself in Yerevan or in any other place of Armenia, without the help of a realtor (real estate agent), the probability of making a mistake is inevitable.
No matter how strange it may seem, (despite the political events) interesting and specific activity is observed both in terms of quantitative growth and inflation of transactions in Armenian real estate market in the second and third quarters of 2018. In this kind of market-activity each buyer should be careful and avoid being mistaken during the purchase.
- Choose the wrong property. Buyer looks at real estate from two perspectives – he/she combines the comfort of the property with financial counterbalance. Often these counterbalances are upset, because buyers only know what kind of apartment or house they want, but do not know whether the house is worth the price that seller offers. But with the help of a realtor the buyer will orientate on the price of the selected property not only at this moment, but also in terms of liquidity in the future. It shows how much the liquidity of the property is, or more clearly said, if you buy the property now, is it possible to sell it two-three or five years later on favourable terms? In many cases, real estate is purchased as an investment option, that’s why it is very important for the buyer to know beforehand what kind of property with how much profitability he/she is going to buy and how much money can be earned in the future.
- Losing in negotiations. The owner can be a stronger negotiator than the buyer or may have a realtor and win, selling the property at a higher price than it has. In this case, buyers may waste their time and money, because they cannot lower the price, if they are not good at negotiations or do not have a specialist to support them. Let’s mention that realtor firstly chooses the right negotiation strategy in order to find the best possible price with the help of his/her knowledge and abilities. In this case, buyer always wins at least 5%: buying at a lower price than the seller “estimates”.
- Risks of mistakes in documentation. This is one of the most important and, at the same time, one of the most difficult issues, through which buyers are rarely able to pass alone, without the help of a specialist. Many real estate companies have specialized lawyers especially for real estate transactions. There are also companies that do not have special lawyers and they organize all the documentation-related processes themselves. And finally, the skilled and knowledgeable realtor takes all the responsibility on the legal side, because he/she has the knowledge and experience to organize the entire process. As a result, it saves time and money, as well as reduces risks.
- Risks of mistakes in mortgage loan. Sometimes there can be misunderstandings and complications with banks. It is necessary to collect all the documents and go to the right bank. In this case, realtor will help to solve a number of issues. The specialist submits all the documents to the appropriate bank, which, as a partner, can make the process easier and even speed it up for a few days. The list of all the above-mentioned mistakes is not complete, as every transaction associated with real estate has its own individualities. But in all cases, all the possible mistakes can be avoided with the help of the real estate agent. .
Without the support of the specialist you can easily be deceived in the real estate market or find yourself in a situation where finding a solution is much more difficult. But the realtor will provide with consultation, will make suggestions presenting market analysis and will help the buyer to create a correct understanding of the market with many practical examples.