Think to all of the age-old sayings such as, “You get what you pay for,” or “Price is what you pay. Value is what you get.” So often buyers reach out to us to try to find a property steal and want to nickel and dime sellers to receive the best possible deal. However, many times the bargain properties end up being the most expensive. Here are some tips to keep in mind when looking for value.
Spend money on due diligence
- Surveys and environmental work can help you to avoid long term surprises or unexpected litigation. When an issue arises, you can solve it before closing with the help of the seller.
- Contractor inspections are such an important part of making a property decision. Use experienced, thorough specialists to inspect your structure, HVAC, electrical, roof and plumbing. This way you can be prepared and make a wise decision on future expenses. Many contractors will help to create a maintenance plan to receive the most life out of your systems. They can also work with you to plan for upcoming, expensive replacements.
- Talk to the municipality about your future use and make sure your property can be used for your purpose
- If you have employees, family or friends that have great skills use them to help with things that other people might have to pay for such as painting, moving, landscaping, organizing, and decorating. This way you can negotiate a lower price based on condition with the ability to solve.
- Take a look at neighbors. Sometimes there can be nuisances that go unnoticed, so make sure to stop by the potential property several times at different times of the day and week to notice the surroundings.
- Investigate insurance costs. Some insurance companies will charge more or deny coverage if a building is vacant for a long time or has severe issues. They do not want to be liable for hidden problems such as burst pipes, fires, etc.
In short, spending money to make sure that the real “deal” you are receiving provides actual value for your purpose is critical.