Real estate is one of those few investments that have rarely shown a negative growth, despite the volatility across Knoxville real estate markets. Some of the countries that have shown the highest percentage change in real estate investments, since 1980, include Spain with 15.4%, followed by Ireland at 14% and Australia at 11.2%. Of course, buying real estate might not be the easiest of tasks but it can be made easy if you know where and how to’s of investment. There are certain important factors that you will need to consider before you decide to make a residential or commercial real estate investment in Knoxville.
Six Important Points To Consider While Buying Real Estate in Knoxville
Investing in a home is perhaps one of the biggest investments you will make in your life. Therefore, it’s vital that you understand the nuances involved in the process of purchasing real estate.
1. Your affordability: This is one of the most important factors and you need to take into consideration the down payment, loan amount, loan interest, your monthly salary, and monthly expenses. The golden rule for buying real estate is: never buy a property that you can’t pay for! In fact, before you make a decision, take advice from a housing counselor or a financial advisor.
2. Buyer rights: A real estate buyer has certain rights as the US Department of Housing and Urban Development’s fair housing scheme. This scheme offers people in the US equal access to homeownership as well as rental opportunities.
3. Real estate agent: While buying real estate you can take the help of Knoxville real estate agents or you can go solo. If you are buying foreclosure homes then you will not require the help of real estate agents as these homes are sold through public auctions. But if you are buying a new real estate property then you will need to look for a reliable and licensed agent who can help you in finding the right property, negotiating the price and guide you through the entire process.
4. Loans: The crucial part of buying real estate is finding the right loan. Off late, there has been a high rate of foreclosures in the US and the primary reason is the Adjustable rate mortgages. The interest rates in ARM have been moving upwards and as a result, more and more people are finding it difficult to make their monthly payments. This should not happen to you! You can choose from government loans like FHA & VA loan to conforming loans by Fannie Mae and Freddie Mac, Fixed rate mortgages, Jumbo Loans, two-step mortgage, fixed period ARM, Graduated payment mortgages, Convertible ARM, and interest only loans.
5. Looking for a home: You can take help from a real estate agent or go the classified advertisement way. These days Knoxville real estate properties are also advertised online and you can get all important details like size, image, number of rooms, locality etc. Once you have shortlisted a couple of homes, you need to go and visit the homes to check if the homes are worth the price mentioned.
6. Paperwork: For buying real estate certain documentation like pay stubs for last two months, wage and tax statement, Federal tax return, bank & asset statements, and a copy of driver’s license are required.
Finally, do your own homework. Research the internet, ask your friends and colleagues for advice and gain from their experience and prevent yourself from making the mistakes they might have made.