Investors pay close attention to a number of different factors when it comes to property acquisition because there is often a very slim difference between a great bargain and a total nightmare. While on paper, a home or business may appear to be an absolute steal, there could be several hidden factors like repairs, city ordinances, or title problems that could drastically reduce the property's value or habitability. Instead of entering a purchase situation partially blinded, it is often helpful to consider factors like community data, zoning regulations, and special incentives before even considering the acquisition of a property.
Visiting the official website or the town hall of a city is often a great resource to find information about property acquisition, because statistical data will be available that would be difficult to obtain elsewhere. For example, the average selling price within any given neighborhood would definitely be on file, and so would information showing the area's crime rate and the educational ranking of local area schools. Property acquisition specialists may take this inquiry a step further by also inspecting the overall unemployment rate of the area, the median salary, or even the average resident's age. Each of these factors help paint an image of the property in question so that a fair price would be easier to ascertain.
While almost any financial institution requires an inspection before the property acquisition process can begin, it is often a huge mistake to settle for the inspector that the property owner, the Realtor™, or the bank recommends. Each of these parties has a vested interest in that property being sold, so it is not at all uncommon for motivated sellers to find a building inspector that will overlook many problematic areas. To avoid this colossal mistake, individuals should always try to find an inspection company that will be both thorough and honest.
There are also a few situations that would provide various special incentives for consumers seeking property acquisition, and these types of deals normally sell very quickly. A foreclosure, for example, is not always a worthwhile investment for a number of reasons, and lending institutions will often waive closing costs, provide additional funding for repairs, or even accept far below retail value just to sell the property quickly. Another consideration is that rural areas often qualify for special government financing that is not available anywhere else, so finding a motivated seller in this type of area is typically considered a great strategic move. The key to property acquisition is just like dealing with any other commodity; the best deals can be found where demand is particularly low.
