It cannot be denied that mortgage interest rates are very low at present. And yes, the prices of houses are still low enough to be very interesting. However, this does not mean that any home you come across would make a good investment. The buyers currently hold all the cards. However, you do have to exert due diligence before you buy. There are a some red flags that you need to be aware of that could tell you that a purchase may not be the best way forward. Sometimes, this means that you need to fix a problem, but at other times it means that you shouldn’t buy. There are two things you definitely have to look into.
Firstly, be very careful before you buy a property listed as a “fixer up.” These properties are often very cheap, which makes them very attractive. Many times, we believe that we can fix the problems ourselves. In reality, however, they are often things that must be done by qualified professionals. Unfortunately, these professionals cost a lot of money, often more than you may have budgeted for. Secondly, be very careful of properties that have clearly had DIY adjustments. A DIY job can look as if it was completed properly, but you can’t see inside the structures where it is likely that a lot of problems exist.
Secondly, you need to know whether the property you are buying is a regular sale, a short sale or a foreclosure sale. Although it is true that these are the cheapest properties, they are also often in poor condition and in bad neighborhoods.
In the end, it is only you who can decide whether or not you will buy a property. Nevertheless, due diligence should always be exerted. Never purchase a property that you haven’t had professionally inspected. If you do find a property has significant issues, you have the option to simply walk away, or you can try to have the price decreased to compensate for this. However, always be careful that you do not get tied into a money pit.