Buying real estate in Bangladesh can be tricky, and mistakes are not uncommon, especially for first-time buyers. Even though mistakes are easy to make, they have a long-lasting effect. You need to be careful every step of the way. When buying property, you cannot take your eyes off the prize until the deal is finalized. Staying vigilant throughout all proceedings is the key to avoiding mistakes and achieving a successful real estate transaction.
On that note, we’ll take a look at 7 common mistakes to avoid when buying real estate in Bangladesh.
1. Going At It Alone
One of the most common mistakes those with no past experience can make is thinking they can do it all by themselves. The selling and buying property is more complicated than one might think. The hassles of deciding on what you want from home and then searching for the right house are tedious enough, but then there are legal issues, financial issues, and verification issues to deal with. Sure, you can get on the internet and access a great deal of information in a short amount of time, but that isn’t enough to provide you with the necessary expertise to handle it alone.
Another problem that arises when you go solo is finding the right property to buy. Property hunting by yourself means hunting with limited resources. Unless you want to roam the streets and look at every piece of real estate, you should get help from others.
Which brings us to the next common mistake people tend to make;
2. Enlisting Help from the Wrong People
When people in Bangladesh think about buying property, they tend to go to local brokers, which is especially common for people living outside of Dhaka. However, these brokers are by no means 100% reliable. In fact, they have a notorious reputation of being untrustworthy and scamming people out of their money. Trust and transparency in real estate transactions is a crucial factor, which most brokers don’t provide.
Even without such deceitful occurrences, local brokers can hardly be trusted to keep your best interest at heart. They tend to take fees from both the buyer and the seller by making up various excuses. As a result, you are left with excessive costs without any outcome.
Buyers who are aware of the true nature of local brokers enlist help from their friends and families. Though they may not be the most qualified of advisors, you can rely on them to be more trustworthy than local brokers.
3. Being Uninformed
Knowledge is an essential tool for making smart decisions. The more you know, the better choices you are likely to make. Buying real estate in Bangladesh is complicated to say the least. As a buyer, you need to have up-to-date information about market trends, budgetary regulations and legal aspects.
Many people make the mistake of starting their real estate journey without gathering adequate information. This leads to a lot of guesswork and ill-informed decisions, errors that you cannot afford to make. Buying property in today’s market requires you to always be on your toes.
4. Choosing the Wrong Location
Buying property is a big deal, both in terms of cost and transferring ownership. You can’t ask for your money back if there is buyer’s remorse later. A common cause of post-purchase regret is choosing the wrong location.
Several factors come into play when choosing the right location for buying property, such as nearby educational institutions, availability of grocers, shopping malls, transportation systems, etc. along with cost. However, buyers often make the grave mistake of choosing economical property over a convenient property. When you are buying property, choose a location that will fulfil all your needs and serve you best in the long run.
5. Failing to Read the Fine Print
The most complicated part about buying real estate in Bangladesh, or anywhere else for that matter, is the contract. By its very nature, a property contract is very confusing and difficult to quickly understand. However, that doesn’t mean you should neglect or take it lightly. As a buyer, you need to be completely aware of what you are committing yourself to. The contract dictates the entire terms & conditions.
Many of the buyers in today’s market miscalculate the necessity of reading the fine print. By taking the property contract lightly, they are putting themselves at risk. The best course of action is to enlist the help of a legal expert and go through every legal document. That way, you can protect yourself from any unpleasant events in both the present and the future.
6. Under or Overestimating Property Value
From the location of the property to the material used in the floors; many aspects affect the value of a property. However, as many features increase the value of a property, some can decrease the value too. Therefore, it is quite easy to underestimate or overestimate the value of a particular property from its actual price. For example, a 4-bedroom flat in Mirpur isn’t as expensive as a flat in Banani with the same facilities.
Misjudging property value can mean either missing out on a great deal or paying too much. In both cases, it is the buyer who faces a loss.
7. Not Verifying Property Quality
Last, but not least, the most common mistake you need to avoid when buying real estate in Bangladesh is not verifying its quality. Purchasing property is a significant investment, and it should be treated as such. Many times, buyers fall in love with a property at first sight and don’t verify everything about it. Unless you buy the property from someone who only deals in verified properties, you should thoroughly check it out. This includes inspecting gas, water and electrical lines, the structure of the building, foundation etc. Go through them, one by one. And if you are unsure about how to check the quality of properties, then ask for help from an expert.
The mistakes mentioned here are the most common reasons that lead to poor real estate decisions. As a buyer, you now have the knowledge about what to look out for when buying real estate in Bangladesh.