The mistakes first property /land buyers make and how to avoid them

Buying land/property is a milestone in one’s life, it may be exciting but also stressful and thus like any other financial investment it should be based on facts otherwise you may find yourself lost along the way. It’s also common that at times when making financial investments some costly mistakes especially that come with excitement, fear, joy and any other emotional instinct may come up and end up putting your finances to waste. Buying your first land or property is one of the best decisions in your life but quality decisions depend on how you go about it, and when mistakes happen with a single biggest purchase like on property and land in your life it may be costly.  

Based on our observations and research we have found out some of the mistakes first land/property buyers are likely to make and in this article we look at some of the mistakes first home buyers are likely to make and what should be done to avoid them.

Failure to get a professional/expert in property or land matters. Real estate being a fast growing sector, it has attracted a number of players including fraudsters therefore using a real estate professional puts you at an advantage, they always have information on local land markets but also have knowledge on others resources you may need in the property acquisition process like on zoning regulations, amenities and utilities and thus help navigate the buying process easily, ease the anxiety and make your buying process easy.

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A professional real estate agent will help you meet your objectives within your budget and save time buying the property you want because they know where to find the type of property you are looking for. Also professional real estate agents always work in line with other professionals in this sector like surveyors, lands officers, city planners that in case you need services of these you can easily be connected. Reputable real estate professionals won’t let you hang alone because they value their reputation.

Another mistake is not knowing how to negotiate, most first time property buyers have no much idea of how to negotiate as such they either come with a fixed price or a certain level of discount but in such situations you either end up paying higher prices for that property or lose the property because your offer is too low. But to avoid this, seek the services of professional real estate agents, who know the history of land markets in different areas, the sales history, and how the buyer is desperate to sell. For example, that is why at Amity Realtor we have a land /property acquisition model dubbed Dondolo, where we get land from people who are desperate to sell and put it on markets at equally low prices. Negotiation may not only be about the property or land price but other contractual obligations.

Another mistake is buying land or property out of emotional decision. When you get money it’s possible that you get excited and start thinking of things like how your new house will look, the design of your compound and forget to dig out facts on that property or land you are going to buy.

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When some people get money, they get caught up in excitement, true buying property or land is emotional but you have to keep in mind that like any other financial investments the risks may be also high so it’s important to make decisions based on facts not emotions. Sometimes people fear losing out on property despite other background information and make quick decisions without due diligence thus you may end up buying property that is substandard or overpriced or with legal issues. That is a reason why at Amity Real tor we have a land acquisition process that supports you to understand what happens at each stage of property/land buying.

Another mistake first time property or land buyers make is not doing enough research. Some issues underlying properties and land on sale may not be seen by our naked eyes and may be easily undermined by a first time buyer but might have dire consequences in future. Issues like environmental factors, zoning regulations can cost you too much to fix or force you to abandon your property. Even if the price of that property or land on the market seems perfect and you think the property looks great after inspecting it, that may not be enough. You make sure you get a professional to know exactly the status of that property. You may consult the neighbourhood to get information on the environmental factors around, crime statistics and authorities to know on the zoning regulations.

The other mistake first land buyers make is not understanding or having a realistic look at their financial positions. Although you might get a loan and other means of financing your land or property acquisition you must have a good understanding of your financial habits and position. When you know your financial position you will be able to buy a property or land without distress. So often people acquire property without assessing their financial positions and in the end they end up losing both the property and money for failure to meet or finance the transaction and the acquisition process. It’s advisable that you first draw a budget and a payment plan in case you are to pay in instalments. Alternatively consult your real estate professional to guide in case of land financing issues because most of these have experts and partners like banks but also some have internal land and property acquisition financing packages that can help in this process. For example at Amity we have the Amity –Umoja fund, where we assess your financial position and capacity and we are able to assist you acquire land whether commercial, rental or farmland in a convenient payment schedule that may go up to three years. Getting proper financing is an important part of any real estate dealing or purchase.

Also first land and property buyers try to underestimate the expenses involved throughout the whole acquisition process. The purchase of that land or property may not be the conclusion of the expenses involved, there are other expenses you need to be aware of like land title acquisition and transfers. For the smooth land and property acquisition all expenses have to be calculated in detail. Having a professional real estate agent can help you know other expenses involved for the whole transaction to be sealed.

While land or property buying may be exciting, for first time buyers it can be both exciting and tense. Because of this they often make costly mistakes that can drain their finances and rescind their dream investment but these can be avoided.