How to Invest Your Money Responsibly when Purchasing a New Home?

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home and moneyWhile the American property market continues to showcase signs of growth, the parlous nature of the current economy suggests that this is unlikely to be sustained indefinitely. With the current level of expansion expected to gradually diminish towards the end of 2013, buyers and sellers must act quickly if they are execute their plans effectively.

While buyers in particular may be keen to make their move during this window of opportunity, however, it is also important that they invest their capital in the most responsible way possible. Attempting to complete any purchase within a tight time frame can cause rash decision making, and ultimately undermine the long term value of your property.

With this in mind, what practical steps can you take towards making a sound real estate investment in 2013? Consider the following options before entering the marketplace:

1. Guarantee the Integrity of your Property: If your property is to sustain its value, it must be structurally sound and secure. In order to ensure this, you must take the time to have your potential home inspected by reputable industry professionals, as its foundations, wiring and structure are assessed in thorough detail. The results of these inspections will allow you to gain a comprehensive understanding of whether or not the property is viable, while they will also afford you an opportunity to place the potential value of your investment in greater context.

2. Research the Geographic Area and Similar Real Estate Price Points: The precise geographical location of your new house will also have a significant influence on its financial value, as social and economic factors can have a direct impact on regional property prices. Before you commit to a purchase, it is important to thoroughly research similar properties in the area and determine the typical price point. In addition to this, you should also check out the quality of surrounding amenities and regional levels of crime, as this will give you an indication of how prices may alter in years to come.

3. Learn the Art of Negotiation: With knowledge comes power, and the process of thoroughly appraising a property and the surrounding area should also provide you with leverage when negotiating with vendors. There is nothing wrong with using slight structural impairments or regional issues to negotiate a more affordable price point, and this can help to reduce an asking price by potentially thousands of dollars. Remember that vendors will use the unique selling points of their property to drive as high a price as possible, so you have a right to find flaws and negotiate a fairer deal.

The Last Word for Home Buyers

Whenever sentiment improves in the property market, vendors and buyers are inclined to make rash and often ill-considered decisions. As buyers in particular look to identify their dream property and execute a swift transaction, it is all too easy to act irresponsibly and ignore the fundamental basics of the home buying process.

More specifically, aspiring home-owners must guarantee the integrity and structural stability of their selected property. In addition to this, they must also give careful consideration to the nature of the surrounding area and the amenities that it has to offer. Finally, they must use this carefully gathered information to negotiate with vendors, as they strive to strike a fair deal that reflects genuine value for money.

This article was written by Lewis on behalf of homeinspectors.net. Inspecting any potential property is crucial if you are to achieve value for money, while it also ensures that you will be moving into a secure and safe living environment.

A post by LewisRHumphries (47 Posts)

LewisRHumphries is author at LeraBlog. The author's views are entirely his/her own and may not reflect the views and opinions of LeraBlog staff.
I am a writer and reseracher who lives in Birmingham, UK. I specilaise in finances and managing savings in a difficult economy.

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