How to Acquire the Right Property when buying a house or land
In the recent past, we have witnessed how certain factors like urban trends and changes in lifestyles have significantly influenced people’s decisions in buying a house or real estate investment. Simply put, housing, investment, and savings set some pressure on households’ consumer-bucket list. Whether regarding mortgage, rents or buy land–and-build costs among other needs. Similarly, most if not all Kenyans hardly miss to court their BIG dream of acquiring the right property.
THE BIG DREAM is an aspect of our lives where at one point we have to at least think about owning or holding an interest in some property. Thus we say buy now and wait, never to buy or better said borrow-build or buy, repay as your property value appreciates.
In fact, in many places, professionals have always reiterated why the best way of doing things right, is in involving the professionals. The opportunities and constraints are within a broad spectrum. This allows us to spend within the range of few millions to hundreds of the same for the various types of real property in the neighborhoods we desire.
I have provided herein under, a short step by step guideline that with discretion, consultations and personal intuition may help a person in decision making. Ultimately this will land you in acquiring the right property. The advice applies to any real estate market segment, whether for purchase or rentals at a particular point in time.
Additionally, before buying a house it’s important to read our blog on 10 tips to investing in real estate
Step 1: Housing Preference
List the housing choices and tradeoffs based on your various circumstances. For example, what plinth areas, which components do you need (a study, sunken lounge, laundry), storeyed house or bungalow, what location and pricing, distance from work and proximity to your preferred social amenities. The essential utilities you would not compromise over.
Step 2: Budget
Set your budget based on your preferences and the constraints as a proportion of your budget (as reflected in real disposable income, savings, and revenues from similar investments). Using the budget, you will tell minimum and maximum monetary costs (floor and ceiling within which to spend). It means you consider the place of other household expenses: fees, retirement benefits, existing rental obligations, bills among others.
Step 3: Market Valuation
Your budget may not get what you need everywhere. Therefore, you will need to establish the costs and benefits, from market values, prevailing conditions, and future changes. Thus you will from the beginning be able to tell which areas you will possibly prefer to hunt from for your property choice.
Step 4: Professional Opinion and Guidance
Seek professional opinion and advice. Firstly, Formulate a ToR for your Realtor who will professionally deliver to you what item you need: rental house or house to buy, where and when. It is beneficial to find a qualified licensed Realtor registered by the Estates Agents Registration Board (EARB). You can find the listed Realtors addresses, based on their good standing on the Board’s website.
Step 5: Using a Realtor
Engage your favorite dealer in a sober, objective discussion about your plan mentioning a temporary basis of choice. Once the Realtor offers to do the job based on your needs, you should move to the next step to make commitments.
“The best real estate practitioners are them that give their clients what they are looking for in an investment. They are available for you. Do not do it alone, simply let them understand your preferences!”
Step 6: Single Realtor or Multiple Realtors
Decide whether to engage one Realtor (sole agent) or more than one Realtor (multiple agents). Both instances have advantages and disadvantages. In the latter case, you pay the Realtor who delivers the product needed. We may need to discuss these in future.
Step 7: Contract Signing
Sign contract with your Realtor(s). Be ready to pay the commission for the agency services. Some Realtors manage a variety of properties in their listing or the listings of their networks. They will be reliable, informative and may give you additional free services. Most importantly to note when buying a house is that you may engage one Realtor (sole agent) or a multiple of them (multiple agents) which have advantages and disadvantages. We may need to discuss these in future.
Step 7: Decision Matrix
Let the Realtor(s) get you various options and alternatives and form a decision matrix for you of the highest best user selection. When a buying a house or land a rational consumer you are will always choose an alternative with minimum possible costs and optimal benefits.
Step 8: Purchase Decision
Once you settle on the right property, investment decisions should follow. It happens that many Realtors are Valuers and may be willing to offer valuation advice to you, as well as suggest various product options depending on the opportunities and your capabilities as their clients. Hence negotiate a better price with Vendors for you. I know how genuine and beneficial this is. Moreover, some of the Realtors could be in the panel list of Valuers who offer valuation services to your financiers. Otherwise, fetch for a valuer elsewhere but have an appraisal report ready to your financiers. In most cases, the Realtor could be selling or letting the distinct properties of your choice from their listings.
The challenge of identifying a suitable property should not worry you that much. Do not wade for the best in property dealings now with the professionals all about. Nevertheless, their advisory and your final actions will be influenced by many factors despite the desire for the best choice in the trendy lifestyle dynamics in designs, smart concepts, and amenities.