November 28th, 2011 10:45 AM by Eileen Denhard
Making smart decisions when buying real estate, or for any large purchase for that matter, requires educating oneself on the process and risks and then taking the time to evaluate, analyze and mitigate those risks. The final analysis should then be used to make the best decision possible.
When buying real estate, far too many Americans fail to take even the most basic levels of precaution by doing the proper due diligence. This is troubling because real estate is typically the largest and riskiest asset someone will ever buy. We’ve all learned this many times over in the last few years via the housing crisis, and it will continue happening until people better educate themselves on the real estate process and mitigate their risks.
Flickr user alancleaver_2000
So what issues should a buyer should consider? Most of the items are not complicated, however running through the important tasks when you are actually buying property is time consuming and tedious. Realize if you fail to do the hard work involved to protect yourself, and something goes wrong, you only have yourself to blame. Doing the proper due diligence to lower your risk is the responsibility of you — the homeowner making the mortgage payment.
Note: There is no risk-free real estate. Even the most diligent of buyers who do all the proper due diligence they know can lose money on some deals due to a variety of unknown, unanticipated, underestimated reasons; or simply bad luck.
The main tasks to do when purchasing a property: (there may be more depending on your situation.)