Real-estate investment is not always an easy process when it comes to residential properties. It is important to research a property very carefully before making a decision. In some cases, properties have flaws that can significantly hurt the value of the home, your ability to rent the property and your own peace of mind. When you are choosing a property to purchase, you should look for red flags that may include:
- High crime rates: Before investing in a property, you should check the local crime rates. You can check if the property you are looking at has high rates of violent crime, theft or other problems. If the property is located in an area with excessive crime, it may be more difficult to find tenants.
- Zoning problems: There are multiple types of zoning problems that could arise when selecting a property. For example, the property you want to purchase may not be in compliance with local residential zoning laws. The zoning status of the property may have recently changed. You should know the zoning requirements and status of the property before you make an investment.
- Location issues: Certain types of problems may be specific to certain locations. For example, the property you want to purchase could be located in an area known for termite or radon problems. If you are on the coast or near a lake, you could also determine whether the property is in a flood zone.
- Decreasing property values: Are other properties in the area significantly decreasing in value? Plummeting property values could be a major warning sign that there are problems in the area.
- Extended market exposure: Has the property you are looking at been on sale for a long time? There could be a good reason the property has not attracted buyers.
- Poor construction: You should check the quality of the building materials and workmanship before making a purchase. Some properties may be damaged from wear and tear, flooding or other factors.
Do I Need a New Jersey Real Estate Lawyer?
Unfortunately, these are only a small handful of red flags you may discover while researching residential properties. An experienced real estate attorney can help alert you to any problems with the property or surrounding area before you make a purchase.
The New Jersey real estate lawyers at Garland & Mason, L.L.C. have decades of combined experience helping buyers through the process of selecting and purchasing residential properties.