Some people are excited when they see an affordable real estate ad – in some cases the values may even be below the market value . But buying real estate directly from the owner can be a big mistake!
Purchasing a property requires the buyer experience to identify a good opportunity. This is not the situation for most people, after all, normally, the consumer purchases a property only once and ends up not acquiring enough knowledge to identify the risks involved.
To help you understand the importance of this issue, we have listed some dangers of this type of business. Continue reading and check it out!
The seller may not be the owner
The purchase and sale contract is not a document that transfers ownership, but only the possession of an asset. Therefore, it is important that buyers understand the differences in order not to end up having losses with any property negotiation.
To become a property owner, it is necessary to have the deed and register the registration. These are two different procedures, which involve notary costs. Because it makes the good more expensive, it is common for buyers to want to reduce the cost of buying, opting only for the purchase and sale contract. What can happen is the fact that the property is:
- be the subject of a legal dispute;
- be part of inventory.
All of these situations bring losses to buyers, who end up feeling cheated.
You can pay more for the property
Another risk of buying property directly from the owner is that of acquiring a property at a price above market value. This occurs when the buyer is in a hurry to close the deal, and ends up buying on impulse and because he thinks he is doing a great deal.
The ideal is to look for a real estate agent to understand the price per square meter of the region where you want to live. This will help you to choose the best investment option, which is extremely important for the price to be paid is a fair value for both parties.
There is a risk of buying inappropriate property
“Buying a home” is a generic phrase, which illustrates how many people acquire real estate without questioning their needs. One of the factors that must be evaluated is: what should the property have to be ideal for your life?
The property purchased directly from the owner may not always be ideal, as this acquisition may ignore this type of analysis. In this case, the buyer considers the property to be a commodity – and that is not correct.
By having the support of a real estate agent or broker , you will have access to a real estate catalog, allowing you to reflect better before closing the deal.
You may have problems with the owner
For such a negotiation to work, it is important that the parties trust each other. If this does not happen, and one of them believes that it is being harmed, the sale is in danger of being canceled.
Communication problems can still cause discussions to happen, creating a stressful environment, which is not good for both the buyer and the seller.
Difficulties with the documentation of the good
When buying a property, you need to be attentive to questions related to documentation. The lack of a document can cause serious problems in the future – for example, it can cause the loss of the property or, even, make a new sale of the property unfeasible.
The bureaucracy is so great that small details must be thoroughly analyzed and, for those who are not used to it, it is not easy to identify what is the indispensable documentation. It is essential to check the entire history of the property.
For example, if the current owners are legal entities, it is necessary to check for labor claims. If there is any legal action, over time, there may be an attachment of the asset and result in the loss of the property.
The documentation required when buying a property, if a loan is made, is quite extensive. Not all certificates and documents are easy to obtain. For this reason, it is good to have the help of professionals in the real estate market, who already know everything that is required by law.
Existence of old debts
The existence of old debts is also one of the risks that the buyer takes when buying a property without proper advice. Some people may use it in bad faith and sell assets that are overdue with regard to taxes and fees. The debts can be so high that the buyer may have to bear the costs in order not to lose his investment.
When a real estate consultancy intervenes, an analysis is made and, if there is any amount of debt, it is discounted when making the final settlement. Thus, what remains to be paid is the responsibility of the buyer, as he will have already received a discount on the price of the good.
Problems with property maintenance
Maintaining the property can sometimes become a major problem. Some repairs are visible and easily identified, such as paint problems or broken glass. Other problems are hardly noticed, as the electrical and hydraulic parts of the houses are inside the walls and even on the floor.
This makes it difficult to see broken or clogged pipes, which can become very risky for buyers. When the property is inspected by professionals in the area, they know what problems to look for and request that the repair be done, even before closing the sale.
Occurrence of blows
In all branches there are people with malicious intent and the real estate segment, for turning large amounts of money, is the target of this type of individuals. For this reason, care must be taken when purchasing real estate directly from the owner. The buyer should be aware of the following factors:
- request for advance deposits;
- wrong location.
It is necessary to keep your eyes wide open so as not to lose money, time or even need to go to court to recover values. A real estate company that has credibility is a great option to avoid getting into a complicated negotiation.
As we have seen, buying property directly from the owner is not very advantageous. It is true that many people resort to this practice, mainly to save with fees and taxes, but this turns the purchase into a high risk investment.
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