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Real Estate Experts Help You to Avoid Five Common Mistakes that Homeowners and Property Investors Make

Florida Dream HomesSmart home-ownership and property investment decisions should be based on careful research and planning. Whether you are buying cash flow properties to rent or flip for quick profit, or if you are buying or fixing up your Florida dream home, buying real estate is an investment that has the potential to add significantly to or severely deplete your financial reserves.

Buying the wrong property or making the wrong decisions about location, improvements, maintenance, financing, and property management can be more than financially devastating. Failing to do your due diligence and make fully informed decisions can lead to worry, stress and a situation where you find yourself upside down and financially drained.

Even if you are not buying Florida foreclosure or short sale properties, these five common problems identified by Florida real estate professionals can help you to make better choices when buying a home or other property.

  1. Buying the “worst house in the best neighborhood” is a mistake you will want to avoid. If the house is in poor condition, you’re looking at a money pit property. The leaky roof has caused water damage inside. The water damage has led to a termite infestation. The termites have made the structure unsound. Holes in the walls may have brought other critters in or moisture could have undermined the foundation. The list goes on and on. Still think that “worst house” is the best deal?
  2. Not getting inspections before making an offer is a big mistake. You are not an expert on safety and structural integrity. Why then do you feel you can do a quick once over of a house and declare it a quality candidate for purchase? You can’t. Buyers who don’t have an inspection often find themselves in deep trouble as an increasingly long list of problems reveal the buyer’s worst nightmare. Keep in mind that once you acquire the property, there is no going back – no changing your mind.
  3. Buying a property with a lien on it is something you definitely want to avoid. Experienced buyers have a real estate attorney perform a title search before buying the property to make sure there are no liens attached to it. Inexperienced first timers “get a good deal” by buying a foreclosed home at auction and find out later about liens attached to the property. These can make the sale invalid (without any refunds) and/or add substantial liability that greatly reduces the property’s value.
  4. Buying a home in a bad location because the price is low is a common mistake. There’s a reason why that property is selling for a rock bottom price. Problem is, bad neighborhoods don’t get better overnight. If you’re looking to flip a home for a quick profit this is the worst way to do it. You’ll be lucky to get back what you paid for it.
  5. Attempting to buy a home or investment property when you are not a qualified buyer is a waste of your valuable time. If you’re buying an REO property from the bank, don’t you think they’re going to want you to have a high credit score and solid credit history? Think about it. They had to foreclose because the last owners couldn’t pay their mortgage. Don’t buy into the hype of “anyone can get approved.” Do the work before you start the process to clean up your credit.

Complete Guide to Buying Florida Foreclosure Property Free Report

To get more valuable tips about buying Florida foreclosure properties and access to a database of the best deals on the market, request your free report (on the right), “Complete Guide to Buying Florida Foreclosure Property.”

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