Gearing up to buy a home? Shopping for a home is exciting, exhausting and a little bit scary. In the end, your aim is to end up with a home you love at a price you can afford. Sounds simple enough, right? Unfortunately, many people make mistakes that prevent them from achieving this simple dream. Arm yourself with these tips to get the most out of your purchase and avoid making 10 of the most costly mistakes that could put a hold on that sold sign.
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1. Using the wrong real estate agent.Just because your sister’s college roommate’s friend just got a real estate license doesn’t mean she’s the right agent for you. Find someone who does real estate full time and knows the local inventory and find out how she communicates. Is it OK to text? Is it OK to DocuSign things? Make sure you get along with this agent, you will become fairly close in your search for the right home.
2. Shopping before you get preapproved.Before you get serious about buying real estate, find out how much mortgage you qualify for and get a preapproval letter from your lender. If you fall in love with a property, write that offer and then find out you can’t afford it, it’s an emotional roller coaster you can’t afford.” Many agents won’t even take buyers to showings until they have a preapproval letter for that very reason.
3. Taking advice from outsiders.Parents, relatives or friends who haven’t bought property in the local market may not understand local pricing and market conditions. Parents or in-laws who own houses in the suburbs may also have unrealistic expectations about what the equivalent amount of money buys in the city. Be careful about people that are giving you advice from across the country.
4. Skipping the inspection.Home inspections can help alert potential buyers to problems such as structural issues, faulty wiring and other problems a layperson probably wouldn’t spot. But if you’re in a market that moves quickly, you might be tempted to skip an inspection to make the offer more appealing, Insisting on an inspection might slow the process, but, any seller that is going to knock you out because of that, is probably hiding something anyway. You’re spending hundreds of thousands of dollars, so you want to make sure you’re getting what you think you’re getting.
5. Overdoing contingencies.While home inspections are recommended, some home buyers include so many inspection-related contingencies that it can scare off the seller and his or her agent. Some buyers are nervous, so they’re looking for extra ways to change their mind and walk away, You can write a competitive offer without all these extra things and leave yourself a couple of ways to get out. Talk to your agent before submitting the offer, so you’ll feel confident your interests are protected.
6. Getting too attached to one property. In competitive markets, you may have to put in offers on several properties before one is accepted. Some buyers get so infatuated with one property that a rejected offer hits them hard. It’s OK to feel anxious, but you need to be able to fall in and out of love during a home search, If you find a home that you think is perfect for you and you don’t get it, you can’t stay down too long. You have to recognize that wasn’t the house for you.
7. Taking too long to make a decision Right now it’s a seller’s market: inventory is low and homes sell quickly — you have to move fast. There’s not a high volume of home inventory out there, and many of the lower-priced homes are going for cash. Don’t let cosmetic issues like paint colors, outdated decor or old appliances keep you from putting an offer in on a home. You can take your time later to upgrade the physical imperfections. If a house is priced well, in your desired location, is the right size and has a great layout — make an offer! You can worry about that powder pink bathroom later
8. Being Too Picky. Go ahead and put everything you can think of on your new home wish list, but don't be so inflexible that you end up continuing to rent for significantly longer than you really want to. First-time home buyers often have to compromise on something because their funds are limited. You may have to live on a busy street, accept outdated decor, make some repairs to the home, or forgo that extra bedroom. Of course, you can always choose to continue renting until you can afford everything on your list - you'll just have to decide how important it is for you to become a homeowner now rather than in a couple of years.
9. Lacking Vision. Even if you can't afford to replace the hideous wallpaper in the bathroom now, it might be worth it to live with the ugliness for a while in exchange for getting into a house you can afford. If the home otherwise meets your needs in terms of the big things that are difficult to change, such as location and size, don't let physical imperfections turn you away. Besides, doing home upgrades yourself, even when you have to hire a contractor, is often cheaper than paying the increased home value to a seller who has already done the work for you.
10. Offering too low of a price or “low balling” Many buyers feel that they have to get a good deal, ironically these are the same people that think they need to get top dollar for their home when it is for sale. It’s true that it is sometimes appropriate to offer a lower price on a home. Many equity sellers pad the sales price in anticipation of a lower offer, fixer homes, homes in need of some updating or a great deal of work, will always be ripe for a bargain deal. And a home that has been on the market for a long time could as well, however, much of the current market is different and your Realtor would tell you which is which. In the not so distant past. In today’s market, homes are appropriately priced to sell and are very desirable. Bidding low on these homes are futile, as there are sure to be lots of competition in buyers. Always put yourself in the seller’s shoes, if this was your home, would you sell it for 30% less?
Conclusion Buying a first home can seem stressful and overwhelming, and it isn't without its share of potential pitfalls. If you're aware of those issues ahead of time, you can protect yourself from costly mistakes and shop with confidence.
For many people, a home is the largest purchase they will ever make, but it need not be the most difficult.
Author:Paige Parker Phone: 208-870-4287 Dated: November 4th 2015 Views: 810 About Paige: Hi, my name is Paige Parker. I was raised in Idaho and have a love for my state. I have a passion ...
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