Three Concerns With Buying A Unique Property
There are several unique properties in the market at any particular time. For example, there are houses built in the shape of everyday objects or those constructed entirely from recycled materials. However, buying such properties may present some challenges, such as these three:
The House May Be Difficult To Sell
People love conventional houses; that is why they are called conventional in the first place. The majority of people want houses with designated rooms. They want homes built from the common materials such as stone and wood. They want houses that their friends or relatives have.
This means the market for unconventional houses is small. Therefore, when you buy an unusual house, it will be difficult to get a buyer for the house if you ever get tired of it. You may be forced to sell the house at a throwaway price if you want to sell it fast or wait an agonizingly long time to dispose of it at the correct price.
Getting Mortgage May Be Difficult
Mortgage lenders risk a lot when they give people money to buy properties. Even after your lender has confirmed that you have enough income to repay your loan, they still need to protect their investment further. For example, your lender wants to be sure that they will be able to sell the house and recoup their investment in case you default. Unfortunately, your lender also knows the difficulties associated with selling a unique house. No lender wants to be stuck with an unsaleable house, so it's difficult to get a mortgage for unusual properties.
The Valuation May Not Be Accurate
Another thing with unusual properties is that it is not easy to come up with their accurate values. This is because one of the most common and accurate ways of valuing a property is to compare it with similar houses in the same area. Unfortunately, by definition, an unusual house isn't common, which means there won't be many (or any) similar properties in the area. Therefore, the comparison data will be limited, and you may easily end up buying the home at the wrong price. This may not be an issue if the house is undervalued (in which case it's a steal for you), but what if it is overpriced?
Therefore, it isn't wise to buy a unique property without consulting a real estate professional. The professional will educate you on the pros and cons of the property and help you confirm that the property is built to code despite its uniqueness.
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