Cheap real estate can get really expensive, really fast, if you aren’t using the right tools and math. How can MI real estate buyers stay safe and make sure they are really getting a good deal when shopping for property?
Michigan is famous for its inexpensive real estate, and it may offer many advantages in this respect for home buyers and investors looking for low cost property over ‘cheap’ homes elsewhere. The truth is that cheap isn’t always the least expensive. So, what should you be looking for to ensure that ‘deal’ doesn’t become a money pit nightmare?
What’s the real cost. Buyers need to be especially careful when purchasing property by owner, at auctions, and online. Often you don’t really know what you are getting. Often you don’t know what you really own, what your rights are, what the immediate costs are, what the holding costs are, and how the value and use may be impacted over the coming months and years.
Most buyers are not title, research, legal, and finance experts. When buying through channels which provide minimal information this is compounded by even cloudier information about ownership, liens, repairs, and local market trends and factors. There could be major structural issues lurking. There could be past taxes or liens. There could be other claims to ownership and equity, or rights to access the property.
In order to really determine what the true cost is you need to know these things and numbers. Know what your security and rights are, what the financial needs are. Fortunately, you can close this information gap and gain better clarity on these items by investing a few minutes online, and finding pro help. For example; obtaining a title search and a buyers title insurance policy, having a thorough home inspection, using Google tools to get to know the area and be alert to any plans for development, as well as using a licensed and experienced Realtor.
Inexpensive properties can be a great deal and a sound investment. That is if you are buying with full knowledge about what you are really getting. So, do your homework, get clarity, and lean on the professionals that are here to help you.