Potential Challenges When Buying a Property
The Land Up Learning Series
If you had the ability to see the future, what would you like to know? Maybe next week’s lottery numbers or seeing if the ticket price to Hawaii will come back down.
If we could see into the future, it would be safe to say that it would be a lot easier to prepare for situations that arise.
Throughout your real estate journey, you might find yourself in some unexpected, less-than-ideal scenarios. While we can’t predict your future, we can share a handful of common issues that buyers see along the way - and that our agents have successfully worked through time and time again.
Deciding if a Property is a Good Investment
Buying a property is one of the biggest and most important purchases a person can make. While there may be some exceptions, in general, buying real estate that is steeply overpriced is not a good investment. From down payments to appraisals to renovations, naturally you’ll want to be sure that the property is worth the money.
Ultimately, It’s important to start with a solid buying strategy so that the property you purchase aligns with your budget and goals. That’s where an agent can come in to help you understand the numbers - whether it’s a commercial property, farm and ranch, or raw land.
The property is just just one piece of the puzzle. Beyond running the numbers, your agent also brings knowledge of the local area. County laws, nearby appraisals, up and coming developments, money-saving exemptions - these are all things that your agent can help you understand, so you can make the best informed decision possible.
Buying with Rising Interest Rates
When my dad bought his first home in the 80’s, he bragged about getting the lowest interest rate he and his friends could find - the low, low rate of 12%.
While they haven’t been that high in quite some time, interest rates continue to play a big part in whether a buyer wants to buy, and if a seller is able to sell. High interest rates often lead to sticker shock - so it’s important to work with an agent who knows how to navigate market conditions.
Remember: you are dating the interest rate, but you are marrying the purchase price. For better or for worse, one thing we can always count on is that interest rates constantly change. When rates go up, often listing prices go down.
So long as the current full payment fits into your budget, don’t let high interest rates deter you! Refinancing your property when rates drop is a common strategy, and your agent can help you find the right property within your budget in the meantime - so you can enjoy a lower payment when rates eventually come back down.
Understanding Zoning Restrictions and Regulations
Sometimes a property meets 100% of your needs. Other times? You need to make changes. This is where understanding your local zoning and restrictions come into play.
These rules are set by the city or county. By defining laws around how the property may be used, zoning and restrictions protect your investment and the value of the surrounding area. This keeps rhyme and reason to the local area, which is why we don’t often see a skyscraper next to a tiny home (that is, unless you’re in Houston).
Sometimes, like many of our listings at Land Up, a property can have no restrictions. These parcels offer a fantastic opportunity to build and do what you want with your land, especially if having flexibility is your goal.
Agents that are familiar with the area can help you understand what local laws are in place. From wildlife to tax exemptions to restrictions, an agent can assess if the property meets your must-haves or find one that does.
Learning about Your Financing Options
When it comes to financing a property, there are many options out there to cover homes, mobile homes, different types of land, commercial properties, and more.
Understanding all that is available can be overwhelming. But in order to makes the best decision for you, it’s important to know your options so you don’t miss out on landing your dream property.
There’s a lot of information out there about how to borrow money for a home. But, if you’re obsessed with land like us, you’ll want to learn more about the specific loans and considerations. We also work closely with several lenders throughout Central Texas, who you can connect with to learn more.
Working with Unrealistic or Emotional Sellers
Sometimes sellers can have… unrealistic expectations. Understandably, sellers have an emotional attachment to their property. It’s where they’ve made memories over the years, and where you plan to do the same.
Unrealistic sellers may have high asking prices, take longer to sell, and more. While emotions add complexity to the process, an experienced agent can work with the sellers to manage expectations and guide buyers through the situation at the same time.
Getting Outbid On a Property
Buying a property can be competitive. Your offer may be great, but then another offer comes in that’s just what the seller is looking for. And now, you’ve been outbid.
Especially in a seller’s market, it’s important that your offer is attractive. There’s more to a bid than the purchase price. Making your offer stand out amongst the rest is as much of an art as it is a science. Bidding enough is the first step, and your agent can help you add a personal touch, streamline the communication, lead negotiations, and make the closing process as quick as possible.
Even when all of your ducks are in a line, your offer can still come up short. That doesn’t mean your real estate journey is over. Your agent can help assess what could be done differently, research other options in the area, and bring local market know-how to make your next offer even better.
Finding the Right Real Estate Agent
We still can’t see into the future (sorry!), but one thing we know for sure is that our agents have successfully navigated all of the above and then some. At Land Up Realty + Investments, our goal is to find the right property for you.
We’ve helped hundreds of buyers and sellers and know the Central Texas area like no other. Just don’t take it from us - see what our clients are saying. If you’re looking for an amazing agent to help buy or sell, then look no further!