It has always been my belief that you can never have too much information about a subject. On the other hand, there is a point where you have enough to make an informed move. This applies to Real Estate and is very relevant in todays fast market. Buying property is one of he biggest decisions you can make. Unless you are a billionaire, this will be a major portion of your net worth. I don’t know about you but I have in my lifetime lost pretty much everything a couple of times and I didn’t like it. I was younger and could pick myself up and start again. Now I’m not so young,
What’s enough information? Of course you have to do your due diligence. You have to know where it fits in the marketplace and if it is reasonable value. If you like it and there are no obvious issues then you have to make a decision to make an offer. This is not a “ You bought it you got it, so sorry, end of story” situation. Your safety net is conditions or subjects as they are called. These are questions you can ask, tests if you will to make sure it is what you thought it was. Building inspections, well logs, septic inspections etc. If there is a problem, you don’t have to remove the subjects or you can negotiate to fix the problems. If you wait to get all the answers you probably will miss getting the property. Yes this sounds like a high pressure message but this is a very active market. If value is your biggest concern, make a professional appraisal a subject. Appraisals should be within 5%-10% of the real market value, plus or minus. They cost about the same as a house inspection. They are not perfect but they will give you assurance that you are in the right ball park. If you are getting a mortgage, your bank will probably require one. Check with your bank first to get the right appraiser. Your subject to financing will cover that.
If you find a property you like but you think it is overpriced, waiting for the seller to lower the price is not the smartest move. Someone else will make an offer, discover the seller’s bottom line and you will learn about it when it shows up as sold. Inventory is very low and good valued properties are selling quickly. The chart below shows this better than any words.
John Cade, Pemberton Holmes Salt Spring Island