7 Common Home Buying Mistakes and How to Avoid Them
Are you finding yourself overwhelmed by choices and work during the house-hunting process? That’s no surprise. You’re spending a ton of money and spending a lot of time trying to make a perfect choice.
It’s no surprise that Americans say that the house search process is one of the most stressful points in their lives. After all, you may make a costly mistake.
Unfortunately, a few common home buying mistakes make the buying process much harder. Keep reading to learn seven mistakes you need to avoid.
Not Looking at the Community
Does a house deal appear too good to be true? There will be times when a home looks like a bargain. You see a reasonable price, and there aren’t many improvements to make.
However, you have to consider other issues than the home when examing your options for homes.
The neighborhood you buy in plays a significant role in a home’s value. Look at the surrounding area for crime and other things that can negatively impact your quality of life. You can improve a home, but it’s harder to improve a neighborhood.
Not Looking at More Properties
Sometimes a home just clicks with people. It looks like it has everything they need, so people make an offer as soon as possible.
While you may need to do this in a seller’s market, it’s a mistake when the buyer has power. You may overlook some issues with a home if you rush a buying decision. If you make an offer straight away, you may miss those things.
In some cases, you may not get the home you bid on and not have another home to fall back on.
If you aren’t in a rush to buy a home, don’t rush the bidding process. Take time to view enough homes to ensure you find the perfect home for your needs.
Not Using a Real Estate Agent
The buying process for homes can be stressful. You’re spending a lot of money on a home and signing up for a mortgage that lasts decades. That stress can cause people to make poor decisions when doing things independently.
A real estate agent can reduce some of that stress. You can count on your agent to aid in the entire process and take on much of the work.
They’ll help you look through home listings, find home issues, negotiate, and much more. You don’t have any agent fees as a buyer, so take advantage of every service a real estate agent offers.
Not Getting a Mortgage First
Many new home buyers jump into the process without getting pre-approval for a mortgage. They think they can wait until after they finish comparing home prices to line up financing for a home.
The problem is that financing doesn’t always work out in this situation.
A pre-approval will let you know how much home you can afford and the types of homes your lender will approve. If you don’t get pre-approved, you may get denied after finding your perfect home.
On top of that, sellers are more likely to accept an offer from someone with a pre-approved mortgage. It’s proof that you have the funds for a home, so they’re more likely to take a chance on you than someone without financing or funds available.
Selecting a mortgage lender should come before any part of your real estate search.
Not Getting a Home Inspection
Even if a home looks functional during a home tour, you may not see any hidden issues. Things like bad roofs, bad water heaters, and poor foundations are hard to spot without experience finding home issues.
A home inspection will find these problems. Unfortunately, some buyers waive the inspection in hot markets to improve the chance of a successful home purchase.
While this may work on some occasions, you never know when you’ll get more than you bargained for. You may end up with a home that needs thousands of dollars in repairs.
A home inspection would reveal these problems and give you a bargaining chip to get the seller to fix things. Don’t buy a home without an inspection.
Not Making a Good Bid
It’s fine to negotiate prices during the selling process. However, that won’t always give you the best chance of getting a bid accepted.
This is especially true in a seller’s market. Often, homes in a hot market go well over the asking price. If you put in a bid below the listing price, there’s no way you’ll get a home bid accepted.
Monitor the market to see where home prices usually land. You may need to bid over the asking price in a seller’s market.
In a buyers market, it’s more common to take your time and negotiate down to get a better price. Just be reasonable and don’t send bad offers to sellers.
Not Making a List of Requirements
You probably have an idea of what your dream home contains. However, you won’t always get what you want. This is even more true if you don’t lay out your preferences before you start buying.
Create a list of all your preferences in your new home. Separate those preferences between must-have features and those that are nice to have.
Once you have this list, you can bring it to home tours and check the box for the features you want. You may not get everything you want in a crowded market. However, it will stop you from buying a home that doesn’t offer anything.
Don’t Make These Common Home Buying Mistakes
The home buying process can be long and complex, so it’s easy for novice buyers to get overwhelmed and make mistakes. That makes it more critical than ever to pay attention during the buying process and watch for common home buying mistakes. Keep learning more about the buying process to ensure you purchase the home of your dreams.
Head back to the blog to find more advice that will help you take care of your new home after the buy.