Buying a home can almost be a full time job in itself. It is a major life changing decision, but it doesn’t have to involve stress, aggravation or frustration. You want to be able to find the best home that checks all the boxes and won’t break your monthly budget! These are some of the most common mistakes you should avoid when buying a home:
Buying Mistake # 1 – Buying a home not in a price range comfortable for your budget:
It can take time and effort to find the perfect home. You will be spending a great deal of your time each day. There are so many choices and price points for a home. You will want to make sure you stay within your budget price range when looking at homes. Many buyers may look at inexpensive homes and have hopes of doing a complete renovation.
Just have a plan for budgeting and estimating the renovations you may want to do before making an offer on the home. The repairs and renovations needed to the home must be within your budget but also will determine what price to offer for the home. Be sure to understand the costs and create a budget to help you with the process.
Buying Mistake #2 – Underestimating the costs of buying a home
The costs to buy a home can amount to much more than the monthly mortgage payment of principal and interest. As you are budgeting your monthly payment, you should include principal, interest, insurance and the property taxes within your monthly payment. Sometimes this can be referred to as the acronym PITI. The costs of buying your home will need to take into consideration several other factors as well. You should always account for moving costs, closing costs, home inspections, possible home owner association fees and having enough funds on reserve for future repairs to your home.
Buying Mistake #3 – Only considering the lowest priced homes in your price range
It is important to stay within your price range but also feel comfortable looking for homes in a slightly high range that could have a motivated seller. Sometimes sellers can be motivated to take less than the listing price for their home. If you make an offer that works for the seller you could get the deal completed on a home slightly higher than your price range. The key is to understand how to find homes that could have a motivated seller. Always make the offer that you are comfortable with and see if you can get a deal negotiated with the seller. If the seller has not had many offers on their home, they may take the time to consider an offer that could be lower than they initially planned to accept.
Buying Mistake #4 – Don’t walk away, you decide to RUN!
You may find a home you really like but the home could have more potential issues than you have a budget to address. Finding the right home can be a dream but buying the wrong house for the wrong reasons could be a nightmare. If your inspections find issues the seller will not address or the seller is not flexible to negotiate you may need to consider all your options. You do not want to overpay for a home with problems because you have the ability to keep looking for a home that fits your needs. If the home is not the right home for you or the inspections find possible issues you do not like, it may be best to walk away and fit a home that better fits your needs.
Buying Mistake # 5 – Ignoring major repairs when buying your home
As buyers look at a home they may want to try to ignore major repairs needed to a home because they may feel comfortable in the price of the home. These major repairs should not be ignored when considering making an offer on a home. Many savvy buyers today want a home they can just back up the truck and move into and not have to worry about making immediate repairs especially on major items such as a roof, air conditioner, etc. As you are looking at homes, do not overlook possible repairs or renovations that need to be completed now or in the near future.
Buying Mistake # 6 – Not Performing Inspections
As a buyer you should always have all inspections performed on your potential dream home. Many buyers may believe they could save money by not performing inspections on the home. These inspections should include, but are not limited to, a home inspection, pest inspection, septic/well inspection if applicable and any other inspections you believe would be in your best interest. Repair and maintenance issues can impact your monthly budget so inspections can assist you in gathering more information on the condition of the home before you commit by making the purchase.
Buying Mistake # 7 – Not getting pre-approved for a mortgage
It is always a wise decision to speak with a banker or mortgage professional about getting pre-approved for a home mortgage before you begin your search. All parties involved such as the seller of the home and the Realtor® normally agree that offers made by pre-approved buyers make for a better negotiating process to get a deal done.
Buying Mistake # 8 – Draining all of your saving to buy a home
Many buyers understand the importance of having a down payment to buy their home. The important thing to remember is to never drain your entire savings for the down payment. We are know that in life things come up from unexpected bills to now even more maintenance costs when you buy a home. It is a good idea to determine how much of your savings you really want to allocate to your new home purchase and how much savings you should retain for reserves for any future rainy days.
Buying Mistake # 9 – The frustrated buyer – “I am done and just want to buy”
It can be a long process to find and negotiate the house of your dreams. Many buyers can become frustrated especially in a hot market when homes are selling fast. You never want to become a buyer that becomes frustrated and buys a home because you have just had enough on this roll coaster ride of trying to buy a home. Patience is a key to finding what you want and trying to negotiate the deal at the right price. As you begin the buying process, it is a good idea to take the time and make some notes on what you really want in a home. Having a better understanding of the home buying process can take some commitment and times. Working with a Realtor® can help relieve some of the stress from this process.
Buying Mistake # 10 – Not utilizing the services of a Realtor®
You may be considering searching for a home on your own especially with all the information available on real estate websites and apps. It can be a lot of work and can becoming frustrating navigating through the buying process. Ensure you are committed to doing the work and the research before taking on the task of buying your home on your own.
It is always easier to have experienced help with this process. The best part is when you are buying a home, the Realtor® can assist you without you having to pay their commission.
You may want to consider five of the most common reasons why using a Realtor® can be a huge advantage when trying to buy your next home:
- The seller will normally pay the commission to both sides of the transaction, so why not utilize an experienced Realtor® assistance with this process?
- Determine what kinds of homes you can expect to find in your desired price range and markets of interest.
- How to navigate through the negotiation process and negotiating the right price to make for your offer
- The Realtor® can assist you in finding the latest home listings with all kinds of information through the multiple listing service (MLS)
- A Realtor® can quickly assist you in finding available properties for sale and can enable you to potentially beat your competition of buyers that are only searching by themselves online.
If you are looking to buy a home, Contact me today! Joseph Jurek, Realtor®