Buying a home is one of the most exciting events in a
person’s life, whether it’s the first home or the fifth one; however, it can
also be one of the most stressful. Purchasing a home should be regret-free and
anxiety-free. Learning
to avoid these 7 most common mistakes when buying a home can help lower your
stress and help you focus more easily on possibly the single largest purchase
of your lifetime.
Mistake
#1 Not Being Prepared
When you consider the scope of the purchase, it’s
surprising how many people haven’t done sufficient research. Research
your buying power – It’s easy to get a cursory idea of what you can afford
through some of the realtor websites. Many have calculators that allow you to
input your salary and debts. Better yet, sit down with a
professional before you go house-hunting. You can find out exactly what you can
afford in less than an hour with a qualified mortgage consultant. When
it comes to making an offer on a home, sellers are far more interested in
offers that come from pre-qualified buyers. They know that the sale will in all
likelihood go through and that there won’t be any unforeseen problems at the
last minute.
Mistake
#2 Thinking Too Long Term
There is danger in buying a home
that’s not right for you because you are planning too far in advance. Your life can change pretty
dramatically in the space of a few short years. You may experience a change in
health, family or financial status for example. While you can’t plan for
everything, you do need to consider that you may have to sell the home
unexpectedly in the not-so distant future, and the house must have some resale
value.
Mistake
#3 Waiting Too Long
It’s a big decision and only a
foolish person would enter into it lightly. But it’s just as easy to let
caution get the better of you. The real estate market isn’t fixed, it can
change dramatically. Some markets are very tight, with few homes available – a
tight market probably won’t get better in the next year. The National Association of Realtors
estimates that the appreciation rate in most markets will be at least 4 to 6
percent.
Looking at everything before making
a decision, it’s tempting to think that the
grass is always greener somewhere
else, but you may find that the first home is the best home for you. If you
wait, that home may not be available later. Don’t rush into a decision, but if
a house feels right, contact a real estate expert to help you make an appropriate offer.
Mistake
#4 Focusing on a Single Feature
If you develop microscopic vision
when looking at a house, it’s possible to overlook far greater potential
problems.
Interior Decorating
- Don’t get caught up in decorating features. These are all easy features to
change. However, the layout and floor plan of the home isn’t easy to change.
Exterior - It’s
important to have a home with nice curb appeal, but again, you can change that
later. It’s far easier to change landscaping than it is to rip out walls or
add-on to a home to try and make it livable.
Price
– Don’t focus completely on the price. Most buyers go out with an idea that
they will only spend a fixed amount. A budgeted
amount is often the first criteria when it comes time to evaluating homes.
Mistake
#5 Overlooking New Construction
Many buyers focus on existing homes,
and don’t consider newly constructed homes. It’s hard to see the final vision
of a planned home community, especially when touring through a development that
is merely empty lots and partially built homes.
However, these homes have great
appreciation value, especially when you get in during the initial phases of the
development, before the model homes have been built and the developer has
invested a lot of money in marketing the community.
Mistake
#6 Working without an Agent
Many people start looking at homes
by driving by a home for sale and getting the number off the sign, or visiting
an open house. While that’s a great way to get a feel
for the market, it’s also easy to make a commitment to buying a home that
doesn’t necessarily reflect your best interests. Working with a real estate agent can
actually save you time and money.
Mistake
#7 Rushing the Process
Let’s say you found your dream home
and put in an offer. What happens next? If your sale follows most standard
sales, the home is inspected and appraised, the information is shared with the
buyer (via the agent) and the mortgage company. The mortgage company processes
the loan agreement, the buyer and seller sign off and the home is yours! However, in highly competitive
markets, some buyers waive the home inspection so that the loan can go through
more quickly.
So what’s the problem? If there are
defects that the home buyers discover later, they have no recourse – the house
is theirs, warts and all. In a nutshell, be patient. It’s at this stage, when
people try to rush the process, that some of the biggest and most costly
mistakes can take place.
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