The real estate market of Pakistan has constantly been on the rise. This sector has become an important part of the economy and grows by the day. Newer projects are on the scene of development everyday, which gives rise to new investment opportunities and creates jobs for construction work.
Property has long been translated into power in our society. This is why people are always on the opportunity to get their hands on property that they can own. Property was thought of as something that people are only going to obtain after a life long’s hard work. However due to property becoming increasingly more and more affordable for people and the real estate business becoming a more common idea for success I life other than being thought off for being for elites of society; many young entrepreneurs are now also entering this field and making great profits.
With more and more people entering the stream of investments; some black sheep have also been entering the real estate market. These few ill intended persons will commit scams by posing themselves to be experienced and qualified professionals in the field of real estate; when in reality they are fraudsters who want to take advantage of unsuspecting investors.
There are many ways through which theses tricksters and dishonest sellers can take advantage of people. Which is why the reason we are writing this article; following is a list of common red flags to look for when house hunting so that you don’t fall prey to these scams and lose your precious money. Without further ado let us get started:
A strange price tag:
Often on you might come across a listing while trying to find a new property that sticks out like a sore thumb. Scammers are known to put up odd and unexpected price tags to lure people in them. Other than the price being high above the market value; scammers will also put the price too low.
When the price of property is too low; there is a big chance that there is a big flaw with this property that the seller wants to hide from the buyer. This is why the price is lowered to create this unbelievably good deal that any carefree person will invest into.
Ill intended property sellers are aware that not everyone has ample knowledge of the market rates of property. This is where the aspect of putting the price tag a bit too high comes in. scammers will often describe a sub-par property in details that outshine its actual worth or might simply tell the cost of property in surrounding areas to be as high. Some people will have the audacity to tell their potential buyers that they wouldn’t be able to find such a good deal on the market when they are the ones with an absurdly high price tag.
This is why it is always advised to approach any real estate investment with extreme caution and care and take the process slow; confirming every step of the way that your money is going to the right hands.
The sellers have moved out immediately:
In the past one might have thought that it would be near impossible to find out about the history of a property; however thanks to the numerous online real estate marketplaces, potential buyers can learn about the history of a property. Just looking it when the house was last bought and the time frame in which it is being sold can indicate a lot to a buyer.
The short tenure of living within the property that is now up for sale is definitel going to be questionable. With case of rental properties it is not of much concern at all; however for a permanent live in house if the owner has decided to sell the property this quick; there could be a bigger issue at hand.
One should always take their time to inquire and find out about the property’s proper history as well as learn about why the owners are selling the property this quick. Same as with the above case; this condition can occur due to the seller’s situation of being in a hurry to sell a house. Maybe they are moving abroad or wanted to buy it for a short term as their property gets constructed in another part of the city…. The reasons could be many.
It is also important to consider whether what is being told to you is a heresy story that goes around the neighborhood or actual facts about the property. While selling the house is a red flag; it is not conformity of the property’s faulty condition or the property seller trying to pull an obvious trick.
Lack of photos:
With the world becoming digitized people find it much easier to browse for property online other than going door to door and asking around for friends. With the quick digitization of real estate market; it is important to consider the integrity and authenticity of an online advertisement for selling a property.
The entire purpose of a proper online listing for your property is to get the feel of your property across to the buyer. Including the proper location, its surroundings, the dimensions of the property, explaining the pros of the property and including ample amount of photographs is a basis of a good property listing online. although there can be more things wrong with the property listing online; a lack of pictures of the property can be a particular red flag to watch out for.
If you find a lack of photos on the listing make sure to ask the seller why is it? For example if the seller has left out the kitchen from the pictures; ask them why was it? It is usually a sign of the property listing trying to cover up the flaws and trying to get people to visit the property. Although visiting property might not be a significant financial source; it does drain away on your precious time and energy and can result in a displeasing experience. That is why confirming or getting the proper images of a house before you decide to visit It is always good to do.
Your real estate agent is also listing the property you buy:
This solely depends on the integrity of the real estate agent. We will always recommend that you hire a real estate agent that is highly professional and competent. Looking for qualities of a real estate agent that is confident, can negotiate, is honest and has extensive knowledge of the real estate market all the while being a part of a network is something everyone should be seeking.
Sometimes you as a buyer might not have the budget to find the cream of the crop when it comes to real estate agents and settle for a less reputable one. Now it could be up to each person’s situation but a common red flag arises when your real estate agent will show you and convince you to buy a house they are selling from another party. Although in some cases the real estate agent might find it in your best interest; but most realistically it could be detrimental to you in the long run.
The job of a real estate agent is to find buyers to the houses they are selling and make commission on such deals. Now your real estate agent might be distracted by the amount of commission they could make by closing two deals at once and divert your attention to a property that gives them maximum benefits as well.
Always try to go for properties that your realtor is not affiliated with. Or if you are going with such properties make sure that you are carefully accessing the situation to taking second opinions before finalizing the investment.
Real estate is no small or meaningless investment to make. Ranging from tens of lacks to cores; this is going to be a meaningful sum of your money put towards a business or simply being a single time buyer. This is why it was important to address some red flags while investing so you know that your money is going to the right place.
This is the first part of our two part article. In this article we explained some of the red flags of investment. A too high or too low of a price tag on a property is something to stay away from, the history of the property where buyers immediately or in span of only a couple of years put up the property to be sold off again gives off an undesirable vibe for a home investor. Moreover, a lack of pictures on the property listing alongside sharing the realtor and the listing agent of a property you are being convinced to invest in are also things to steer clear off on the market.