Austin Real Estate Blog

In real estate, as with any investment, the last thing you want to find is that you are on the wrong end of the deal that should have been equal. There are ways to avoid common pitfalls and simple misunderstandings.

The first thing to keep in mind when approaching the investment, regardless if it is a private home or otherwise, is to investigate the terms and options applicable to you. The second is to move through the investment process logically. Lastly double check what information you find against what you know and consult with your real estate agent, or representative. The agent will be able to tell you if there are better options applicable to your needs.
One common problem that homeowner encounter in the investment process is receiving the wrong information.

This can often be attributed to misunderstandings or not asking questions when something appears to be difficult to understand. It is important to make sure you are getting all of the information applicable to your situation. You do not need to sign papers that lock you into a loan with a payment schedule you do not understand, or that turns out to be the wrong form of financing for your needs. Understanding the terms and possibilities associated with your loan is important from the start. Ask questions, and consult often with your representative or lawyer.

The second common pitfall that people encounter is ‘falling in love’ with a property or area before they are aware of all of their options. This creates a sense of urgency instead of a mood of understanding and evaluation. This urgency will often cloud judgment and create an obstacle. Approach each aspect of the investment process with an open mind and rely on your real estate agent to provide you with every suitable option, before you settle on which investment you will make.

Approach this investment with ears, eyes and mind wide open and the possibilities will come. As questions with every aspect related to the investment, and you will obtain the best information. Ask the questions that sound insane to you, because those are easily misunderstood. This can be and often is a lifelong investment, so approaching it correctly the first time will provide the foundation of the future.

Potential home buyers might be inclined to run screaming from two small words: “As Is”. This phrase can signal anything from a house that’s falling apart to one where the seller is just not in a position to make disclosure on an otherwise perfectly good property. An article by Dian Hymer attempts to take some of the fear out of this tiny phrase.

“As is” can have several different meanings. It could be the property was inherited and the heir is unable to inspect and make disclosure on the house. The label on an inherited property is put there to protect the heirs from liability.

A bank foreclosure is usually sold “as is”, as the bank is not in a position to inspect the house. However, a homeowner who has not been able to make mortgage payments, may not have had the funds to keep up with maintenance either.

It could also be subject to regional regulations. California, for instance, advertises most homes in “as is” condition. This only means the seller won’t warrant the condition of the property and it’s strongly suggested that the buyer retain a professional inspector.

It could also pertain to a property that needs major repair. In the current buyers’ market, the purchaser is not as willing to accept the “as is” condition without a significant drop in price.

The bottom line is a potential buyer could get a good deal on an “as is” home, but he or she should conduct a thorough, professional inspection of the property and be prepared to make what could be major repairs. Buyers are also encouraged to make sure they have the option to withdrawal from a sale without loss of deposit should the property need more attention than they’re willing to give.