Real Estate Tip No. 5 : Choose Wisely

To recap, my previous Real Estate tips were:

1) Familiarize yourself with the market

2) Be Financially Prepared

3) Have a Plan

4) Take Action

Buying a property requires research and planning. I would recommend that you practice the skill of choosing a good property during your preparation stage.Once you acquire the habit, it will be easier to distinguish a good property from just a property. Try to review the properties available on the market, in the same manner that you would review a book.  Ask yourself if it is a good buy or not? Justify your decision.  What are the features that makes it a good buy?  The more you practice, the more knowledgeable you become.  But most of all, you become less emotional in choosing the best property to buy.

Thus, you can choose more wisely.  Buying a property becomes a real financial investment instead of an emotional exercise.  Through practice, you can logically justify your choice of property to buy.  Why do you think realtors buy some of the best properties available in the market?  They have acquired the habit of choosing the best property to buy through their profession.  Since they get exposed to different properties in all sorts of conditions and size, they don’t get too emotional anymore in buying just any property that meets their budget.  The price is just one aspect of their criteria.

Oftentimes, specially for first home buyers, price is the biggest criteria.  It doesn’t matter if the location is not good, they don’t care much if the property is in a shabby condition…their eagerness to buy within their budget makes them blind with the flaws of the property.  In the long run, that property could cost them more.  They might end up with costly repairs, low or no appreciation value or even deal with poor living conditions. 

Hence, it is important to choose wisely when buying a property.  You should not only consider your present circumstances but also the total value of the property your buying.  Is it really worth buying based on your criteria? Affordability is definitely an important factor, but it should not be the sole basis of your decision.  In the same manner, just because it looks beautiful but its on the wrong location that you should buy this property.  Sometimes, you have to be really smart with your choices.  Look for features that really adds value to the property not just temporary attributes that makes it attractive to buy.  Choosing wisely now, makes you more prepared for the future.