What Home Sellers Don't Tell Buyers

This place never floods. This condo is 75 square meters. This is a quiet neighborhood. Really?

I just read a WSJ article that I think is also applicable to Philippine real estate.

Please read What Home Sellers Don't Tell Buyers

Generally people are honest but homebuyers should verify the accuracy of information given to them. Here are some steps you can do before closing the transaction:

1. Verify if the advertised size is accurate by measuring the property. If you can't do it yourself, hire a professional.
2. Check the neighborhood different times of the day. (mornings, nights, weekends, etc.)
3. Conduct professional inspections (pests, termites, structural, roof, plumbing, electrical, etc.)
4. Pay for a professional property appraisal
5. Verify validity of title, existing liens, legal ownership, etc.
6. Verify and understand HOA rules and restrictions (i.e. monthly dues, pet restrictions, parking, use of common areas, etc.)
7. Demand a home warranty. In the Philippines, home warranties may not be available on resale properties but it should be provided by real estate developers who build new housing units. If you're buying a car, the manufacturer gives you a written warranty. Why should it be any different when buying a new house or condo?

Make sure your purchase contract includes a well-written inspection, appraisal and financing contingency clause that allows you to cancel and get all your money back. This means the price and condition of the property must be worth as advertised and if not, you can walk away without penalty.

The financing contingency should clearly state that if for some valid reason your loan is disapproved, you can cancel and still get all your funds back in full. This happens a lot especially in a tough economy. A buyer may lose his or her job in the middle of the transaction. Losing a job means losing the ability to pay. Inability to pay means no loan.

Make sure you're dealing with the right person. I can't forget a scam when a relative of mine paid someone a huge sum of money in advance to rent a townhouse only to find out later that the guy who took their money is not the owner. The unit was even advertised on the newspaper.

Make everything in writing. For legal matters, hire a qualified attorney. I cannot emphasize this enough.

If you decide to work with a service provider, hire a reputable and licensed professional. You can take the extra step by demanding a copy of their license and talking to their past clients. This includes real estate brokers, contractors, engineers, pest control companies, attorneys, etc.

Do your homework and do it right. It may save you a bundle and lots of headaches.

And if you're a real estate professional, your true value comes from educating and protecting your clients to the best of your abilities.