Buying Nashville real estate (or really any other area) is one of the most major investments that one can undertake in life. It is usually a very emotional process as it also involves huge capital outlays that sometimes may involve an individual’s lifelong savings. It is therefore important that when undertaking this activity, one follows the right procedures and conducts the due diligence required in order to ensure that he or she makes the right investment as is not defrauded by the many crooks that are out there ready to fleece you of your hard earned cash.
To succeed in buying of real estate, it is important that you follow these important steps as they will help you avoid situations that are likely to be painful to you as you lament about your lost money.
- Identify what you want and set your budget
It is important to identify what you are looking for first, real estate agents in Nashville can help you do this. Is it a home for investment, a second home, a commercial plot or residential plot? Once you have identified what you want, then you set the budget for it or what you want to spend on it. It is important to work with a budget as this will help guide you on the resources available to do the purchase without straining yourself or mortgaging yourself in a position that you will not be able to handle the repayment comfortably without struggling. A budget will also give you a guide on the locations you can be able to buy into as different locations have different prices.
- Identify the location.
In follow up of the issue of the budget, the location is the next important factor to look into. In real estate, it is all about location, location, location. There are locations which are on huge demand from buyers, while there are others which are laggards in terms of demand. Therefore it is important for the buyer to weigh his location and see whether it makes a prudent investment to buy there. You need to have a great location where you can have rapid capital appreciation of the property for you to achieve high Returns on Investment (ROI). Some cities and towns have a higher return on investment than others and it is important for the investor to look at the historical trends before making the final decision.
- Conduct research and due diligence
Once you have identified the property that you may want to buy, it is important to conduct due diligence on the property you are purchasing. It is important to conduct a search on the property at the land registry to identify and confirm ownership. It is also important to conduct a market analysis of the area to identify the price dynamics, rents, property yields and other market trends. It is also important to confirm that the property is not on a road reserve or on a public utility land.
If you have seen the property in an online listing, it is important to confirm its availability as it may have been sold and has not been removed from the listing.
- Conduct viewing with a trusted expert/adviser
When going to view the property you want to purchase, it is important that you seek the services of a trusted expert or adviser, who can be able to give you advice on such things as structural integrity of a building, and an adviser who has local knowledge will be able to give you the history of the property. The historical information about a property is critical as it may help an investor understand how a certain property came into being and how it has changed hands through time. Any information on previous disputes and caveats placed previously on the property can be revealed by an expert with local knowledge of the area.
- Negotiation and making your offer
After satisfying yourself that what you have is a good property with a clean title, then you move to the next phase, which is negotiating for the price. Prices can be fixed by the seller or there is room for negotiation ranging from as low as 1% or as high as 10%. It all depends on the property you are buying and the current demand for it. Most sellers hike up the price slightly in order to give the buyers room to negotiate. After you negotiate then you can make your final offer.
- Appoint a Conveyance lawyer
This is a lawyer who is an expert in land and property transfer business and he or she will be able to advice you on all the necessary transactions and necessary fees that are required to be paid such as stamp duty, property rates and will also draw the sale agreement.
- Pay the finances and close the deal.
Here you will be required to put in the initial deposits and sign the sale agreement together with the vendor. You can close the deal by completing the financing and obtaining the title in your name.