For most people, real estate is the largest purchase they'll ever make, so choosing the wrong property can have
disastrous implications for their wallets and well-being. Still, many buyers feel a strong sense of pride in putting their
mark on the property, building equity and having a place to truly call their own. Whether you're a seasoned or
first-time buyer, here's a look at seven home buying mistakes to avoid.
1. Using the wrong Real Estate Agent. Just because your sister's college roomate's friend just got a real estate
license doesn't mean that she's the right agent for you. Vetting agents and looking for someone who does real
estate full-time and knows the local inventory is key. You can lose an offer if you're agent is not responsive.
Request the agents sales data and find out how he or she communicates. Asking if it is ok to text them or if the use
DocuSign to speed up the process. This is a good way to test an agents tech-savviness. If you prefer to check texts
and emails on your phone, you may not want an agent who still faxes.
2. Shopping before you are Pre-Approved. Before you get serious about buying real estate, find out how much
mortgage you quality for and get pre-approved. If you fall in love with a property, write an offer, and then find out
you can't afford, it can be an emotional roller coaster you can't afford. Many agents won't even take buyers to
showings until they have a pre-approval letter for that very reason.
3. Maxing out your Spending Power. Qualifying for a half-million dollar mortgage doesn't mean you should buy a
McMansion. Being little more conservative is wise especially when you consider the added home insurance and
deductibles, property taxes, fees, maintenance, and other potential costs of home ownership. You don't always know
what the future brings and maxing out your budget could put you in a bind down the road. Some dual-income
couples choose to qualify with just one income to give themselves a financial buffer.
4. Taking advice from outsides. Parents, relatives or friends who haven't bought property in the local market may
not understand local prices and market conditions. Likewise, those who haven't purchased real estate recently might
have unrealistic expectations about the loan process or how far your dollar will go. It is always best to consult local
lender and realtor for expert advice on what the local market is doing.
5. Skipping the Inspection. Home inspections can alert potential buyers to problems such as structural issues,
faulty wiring, and other problems a layperson probably wouldn't spot. But if you're after a house that is going to
move quickly you might be tempted to skip an inspection to make the offer more appealing. Insisting on an
inspection might slow the process down but any seller that is going to knock you out because you want an inspection
is probably hiding something. You're spending a lot of money so you should want to make sure you're getting what
you pay for.
6. Overdoing Contingencies. While home inspections and financing are common contingencies in a real estate
contract, additional contingencies can scare the seller and their agent. Adding multiple contingencies show that you
might be nervous and possible looking for a way out in case you change your mind. You can write a competitive
offer without all the extras. Talk with your realtor about your options as every property is different and may require
another approach. This way your interests are protected and you can feel confident that the offer will be taken
7. Getting to attached to one Property. You have to be prepared to fall in and out of love with properties during
a home search. It is ok to feel anxious but you need to keep level headed in order to move on when an offer is
rejected or another buyer slips in. Time is of the essence in real estate so when you find "the" property, putting the
previous one behind you is a required attribute to moving forward.
|Timepiece Real Estate offers classes from time to time on different subjects related to Real Estate
to include Renting vs Buying, The Home Buying Process, Selling Your Home, How To Become A
Realtor, and other. For a schedule of these classes CLICK HERE.