4 Mistakes when You Buy Property
Of the 4 biggest mistakes when you buy property, paying too much for the real estate is the biggest of land buying mistakes. Every parcel of land is unique. You can’t “look up” the value, making it difficult to know the right price. This especially applies in Utah Real Estate as the previous sales price is not disclosed in public records.
You must have an idea of the value before you make an offer to buy property, don’t assume the price you are quoted is even close to the actual value. The seller is telling you what they want to sell it for and that may be 10 times what it is actually worth.
Falling In Love Before You Know Facts
Love at first sight. It might work with romance but it doesn’t work with land. Don’t fall in love with a piece of land until you have all the facts. This is a very dangerous mistake when buying property.
What negatives does the land have? Do you like the area? Do you like the neighbors? How is the road that accesses this property? Will you still like the land in 5 years? Slow down, don’t rush into an offer. Take a deep breath and think about it before you sign the contract.
Don’t Buy Property With Title Problems
There is no reason to buy land with title problems. Use a title company, get a title insurance policy, which will protect you against title problems. I have seen many sad stories of people purchasing land and finding problems later.
Never believe the words, “ I have owned it for years and I know there are no problems.” There could be problems the seller is not even aware of. A Title Insurance Policy will protect you.
Don’t Buy Property Without Legal Access
It is possible to buy land and have no right to access it. This happens when you must cross other land to access yours, and have no legal right to cross the other land. Make sure the title company is insuring access to the property. If there are problems with access in the future they will fix it.
NOTE: Legal access does not mean there is an actual road to your property; it means that you have a right to access your property which may require you to build a road.
First, make sure you don’t pay too much for the land you choose. Next, take your time and look at everything, weighing the pros and cons, before you decide to buy. Finally, get a Title Policy to protect yourself against any problems, including lack of access. These are land buying mistakes you can avoid.