Yes, there are loans and budgets and very black-and-white decisions to make when it comes to buying a house. But there’s also a lot of emotion involved. After all, it’s your future H-O-M-E we’re talking about.
Investopedia recently listed 8 common mistakes that people unfortunately make when purchasing a home. Check out the list below and avoid them all on your way to your new home, sweet home.
#1: Don’t Fall in Love With Something You Can’t Afford
Investopedia recommends setting a firm price range and then starting your search at the low end. You may be surprised to find a house that has everything you’re looking for at or near the low-end of your range.
#2: Don’t Fall Prey to the Idea That There’s Nothing Better Out There
Unless you are a super high-end buyer looking only at custom homes, chances are that for any home you find that you like, there are quite a few others that are nearly identical to it. Investopedia recommends that if you get along in the process and find there are snags with the home you’ve decided you like – such as major repair issues, an inflexible asking price or a difficult possession date – consider moving on. Be open and keep looking. You’ll find it.
#3: Don’t Get Desperate
If you have time on your side, it’s best to wait until something that suits you comes along – as long as your demands are realistic for your budget, you are bound to find something you can live with and love. Making rash decisions only adds frustration, and likely dollar signs, to the final outcome.
#4: Don’t Turn a Blind Eye
Carefully consider your options before you make a commitment and consider waiting until something better comes along. If there are major issues with a home, the issues may haunt you for a long time.
#5: Don’t Bite Off More Than You Can Chew
This may be my favorite one. Please don’t buy a fixer-upper that’s more than you can handle in terms of time, money or ability. Honestly evaluate your abilities, your budget and how soon you need to move before purchasing a property that isn’t move-in ready.
#6: Don’t Rush Through the Process and Skip Steps
In a hot market, don’t neglect important steps like making sure the neighborhood feels safe at night as well as during the day and investigating possible noise issues like a nearby train. Taking the time to consider the decision also gives you a chance to research how much the property is really worth and offer an appropriate price.
#7: But Don’t Wait Too Long, Either
It can be tough to make sure you make a careful decision, but not take too long to make it. Losing out on a property that you were almost ready to make an offer on because someone beat you to it can be heartbreaking.
#8: Don’t Offer More Than You Should
If there’s a lot of competition in your market, it’s easy to get sucked into a bidding war offer too high of a price in the first place. If the house doesn’t appraise at or above the amount of your offer, you might not get the loan unless the seller reduces the price or you pay cash for the difference. Second, when you go to sell the house, if market conditions are similar to or worse than they were when you purchased, you may find yourself upside down on the mortgage and unable to sell. Make sure the purchase price for the home you buy is reasonable for both the house and the location by examining comparable sales and getting your agent’s opinion before making an offer.
There’s a team of professionals out here waiting to help you with these important steps and help you keep emotions at bay when the time comes. Call me when you’re ready to get the process started!