The purchase of a property is an important moment in the life of anyone, regardless of their financial conditions. For this it is always advisable to be aware of the main mistakes when buying real estate.
Whether to fulfill the desire to acquire a good, or to make a safe investment, this is a negotiation that must be carefully analyzed so that there are no future losses or regrets. Therefore, knowing the main mistakes when buying real estate is essential for you to avoid them.
Often, this is a decision making that takes emotion into account. But this is a common mistake, as it is necessary to pay attention to very practical issues before signing any contract. This resolution includes issues such as location, cost-benefit, thorough evaluation of the property’s documentation and the suitability of those who are selling it, for example.
To help you better understand what details to pay attention to when buying a property, we have compiled a list of seven items that are important to you. Check out!
1. Choose a property only for the price
We know that this is one of the main factors when choosing a property to purchase. But it should not be the only one to be considered at the time of purchase.
Anyone who looks only at the price can miss important details, such as the choice of the neighborhood (if there are mobility problems or violence or if it is a developing region, for example).
It is also necessary to check if the amount is lower due to other expenses that must be paid and which can be very high, such as the condominium fee and the property tax. Considering only the price can also make you not realize the need to make renovations that can be expensive. So it takes a little bit of coolness when making that decision.
2. Buy from unknown companies and without a track record
In good Portuguese, track record means track record and should be understood, here, as the history and reputation of the negotiations of the company (real estate or construction company, for example) of those who intend to buy the property. The amounts involved in this type of trading are too high for you to not know exactly where your money is going.
Be cautious, find out which construction company is responsible for the project, look for information on internet complaint sites and referrals between friends who have already bought real estate.
3. Do not research well before buying the property
It is common, when we start looking for a property for purchase, to fall in love with one of the first ones we saw in the list presented by the broker. This is a moment that usually involves a lot of happiness and, therefore, we end up not seeing that the market has innumerable possibilities. The golden tip is not to be in a hurry!
Visit many places before making your choice and more: when you have one or more options that you consider close to what you want, visit at different times. This is how we are able to assess how the incidence of sun, ventilation and light is, for example. It is also a way of getting to know the surroundings better.
4. Do not take the location into account at the time of purchase
Often, the property has a good price and great accommodation, but it is located in a region where there is no infrastructure, there are few options for urban mobility or places where there are many records of violence. It is also necessary to evaluate the cost-benefit ratio in this case: if it is too far from where you and your family work and study, is it worth moving?
A good conversation with neighbors helps to get to know the neighborhood and its characteristics better. You should know if there are risks of floods or floods, if there is trade, public transport and other services available close to the project, among other important information.
Keep in mind that an impulse purchase, without properly assessing these localization issues, can result in problems in the future – both financial and quality of life for you and your family.
5. Do not do all the calculations correctly
When assessing the cost of a property, you must not forget that this will not be the only expense you will incur during and after the negotiation.
You should consider the payment of fees, taxes and extra expenses, such as the Property Transfer Tax (ITBI), which is levied on the properties already built, the Land and Urban Property Tax (IPTU), condominium fees, registration and deed of the property, among others.
If using financing for the acquisition, care should be even greater. To the calculation we mentioned, you must add the interest and installment value. All of this has a great influence on the final value you will pay with the purchase.
6. Not having a financial plan
This tip is directly related to the previous one. It is necessary that you and your family do a thorough planning and find out exactly how much you have for this endeavor. Calculate how much there is for entry, if you are going to finance, what is the limit of the amount of installments that fits into the monthly budget, add this cost to the other fees, etc.
Remember that there must be money to pay for the property, but also the other expenses that life requires, without compromising your income too much and reducing your quality of life. To avoid problems in family financial management, it is necessary to note, preferably in a spreadsheet, your expenses with education, food, transportation, among others.
7. Not paying attention to the contract
Here, you are already in the final stage of the purchase, that is, you have already gone through all the previous steps and are about to sign the contract.
Know that all clauses must be read and evaluated carefully so that there are no surprises after the closing of the negotiation. If there is something you don’t agree with, it is worth reviewing the contract.
Among those that deserve more attention are the items that refer to the possibility of terminating the contract and paying fines. The most recommended is that a lawyer can verify that the contract is in accordance with what has been agreed between you and the seller.
Now that you know the main mistakes when buying real estate, you can feel safer looking for your next home. Look for a real estate or a renowned construction company, which is a reference in the market, to choose your property. Trisul can help anyone who is looking for a property to buy in São Paulo, serving you with ethics and quality.
Take the opportunity to read more about the topic and check out this other article, which talks about buying a property.