Everyone want to multiply the money and that is one of the main reason why people save and invest. And with the surge in the number of builders and booming economy, real estate appears to be a lucrative sector to people. People save huge amount of money only to buy a real estate property and hope for a price rise so that they can dispose the property at a huge profit.
But sadly, as the industry has grown there has been surge in the number of fraudsters in the industry who are eager to dupe you and rip you of your money.
While there is no rocket science in the industry, there are so many nuances and legal aspects that you must be aware of before you finalise any deal of your real estate property.
Hence it becomes very vital here that you remain on your toes while you buy and pay for your dream property. Below we list down some tips which you must consider before you put the money in any real estate project.
Tips on safeguarding yourself against real estate frauds
Do a proper and thorough research on the existing market.
A proper and thorough research becomes inevitable especially in the case of the first time property buyers as they are the prime target of the cons. Even if you are going to hire a real estate agent, the ground work and the research part is still yours to do.
Also, being a potential buyer of a real estate property you should be aware of the current market trends anyways. It is advisable to always conduct the research on the basis of location and existing prices and any future growth opportunities of the market in that particular locality.
Buy only from a company with a very good reputation
You should be cautious as you choose your realtor. Chances are that if you are careless at this step you will end up getting cheated and lose out on the hard earned money. Hence you should buy only from a reputed company which has delivered some good number of successful projects in the past.
You should avoid going to any broker or agent and rather should approach the representative of the companies on your own. Also, before you sign the deal, you should try and understand all the terms and conditions and any sort of hidden costs.
Further you should be careful not to fall for the lucrative deals that appear too good to be true. Chances are that you are going to suffer. Avoiding the companies and agents who try to ‘push’ the deal can also help to a great extent.
Inspection of the property
Before the deal is finalised, it is expected that you yourself should inspect the property on site. You must ensure that your property is free from any sort of legal hassles and is legally approved.
Also ensure that the realtor is authorised to construct on the particular piece of land. It is always advisable to hire an independent party can do a valuation for your house. Based on this valuation you should shell out any money.
Going through the documentations
You should be careful enough to closely examine the title deed and other related documents. Make sure to read the fine prints as well. In case you are confused on some clause, always ask for the specific clarification.
As a matter of fact you should be satisfied that you are aware of any sort of terms and conditions that are associated. It is advisable that you consult some attorney regarding the legal aspect of property and related documentation. If there are no legal hassles, chances of your future disappointments are minimised to a greater extent.
Go for a bank loan
Even if you have an ample amount of money, you should take a little bank loan for a short payback period. Reason behind getting a loan is that banks and other non-banking financial institutions which offers home loan conduct a thorough and an extensive research of the property before they approve the loan. Hence if they smell that the deal is fraud they won’t approve the loan and you would be saved from losing your hard earned money.