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Real estate investing: Look before you leap

Real estate can be a real mine-field, and at any stage in the buying ladder, purchasers can be duped into believing that what they are buying is a good investment, regardless of the reality, by real estate agents keen to make a sell. One of the biggest bugbears with the real estate market is that those people seeking homes will put heart before head and make financial decisions based on emotion, rather than preparing themselves adequately before making that offer they cannot retract.

In order to prepare yourself and to look before you leap, there are several stages that need to be investigated to see if that investment you want to make is as solid as it seems to be. No one would buy a car without trying a road test, though people throw money at housing without opening their eyes to the possible pitfalls, and expensive mistakes can be made.

*Preparation
*Checking the market
*Getting surveyors reports
*Checking finance from different sources
*Evaluating what can be afforded
*Adding up repair work and renovation costs.
*Bartering
PREPARATION

Pre paration is the key to good investment. Knowing exactly what you are looking for in a property helps you to eliminate those properties that do not meet up to your requirements. Often people buy outside the scope of their needs, thinking that they can extend the new house at a later stage, rather than buying what they need for their family. In the preparation stage, make a list of the attributes that are important to you and your family, and do not search outside the scope of those requirements, as the ensuing confusion can cause you to make wrong decisions.

Work out the area you want to live in, the amount you can reasonably afford to spend, the number f bedrooms, whether the house has a garage, and how much garden you want. By doing this, you are limiting the legwork and seeing only those houses that fit your criteria.

CHECKING THE MARKET

If you see a house that you like, check house prices in the area where you are looking before making any offer. Often, homes are over-priced and there is room for negotiation. Here, by knowing the market locally, you have the ammunition you need to try and get the best price possible. Without knowing what homes fetch in your chosen area, you are at a loss as to whether the price is a realistic or reasonable one, and can pay too much for a property.

GETTING SURVEYOR'S REPORTS

When you have singled out a house that you like, it is easy to go ahead and make an

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