Purchasing a home is a high-risk endeavor at all times, but even more so when you are dealing with more than six figures.
These four principles will help you make a satisfying decision.
1. Hire an attorney as well as a real estate agent
Real estate agents have knowledge of the market, but attorneys have knowledge of the law. Real estate agents can draft boilerplate contracts, and these usually suffice, but hiring a lawyer for such a large purchase can aid with customizing the documents to fully protect your interests and investment.
2. Conduct a fact-finding mission as soon as possible
Information is power. Find everything you can about the property: public records, zoning documentation, previous owners and property history. According to the Connecticut State Library, public records can include kinship among previous owners and construction dates. Rely only on primary sources, no matter how long it takes to get to the bottom of it.
3. Establish criteria and stick to them
Write down exactly what you want out of your home. Do not waver. This could be a once-in-a-lifetime purchase, and you owe it to yourself to get every penny’s worth. The seller also wants this to be a big windfall for them. Counter the pressure to compromise.
4. Ask every question; question every answer
Assume nothing. Be very thorough about investigating what you can change about the property and what you cannot. The risk of buyer’s remorse increases with the more money you spend. If it is unclear whether the property can tolerate the changes you want, stick to your principles and keep asking questions until you get the information you need.