I recently came across a great article from Maricel over at Property Crossroads where she talks about the top buying mistakes for real estate buyers. I loved her list. It got me thinking ... What are the most common buying mistakes that a buyer can make? So I thought I would share my top 10 home buying mistakes with you. A good Realtor will tell you if you are making a jump that will land you in a quagmire. You should expect honesty from your Realtor, not just suggestions.
- Trust your Realtor. This is the trickiest and most important mistake you can make. You need to be dealing with a Realtor that isn't in it for the commission. I preach this all the time. You need a Realtor who is in it for you. Otherwise, they will try to get you into the most expensive home they can simply for the commission. And be honest with what you can afford. It is the job of a good Realtor to get you into what you can afford to keep.
- Taking the first home you fall for. This is usually the one you eventually buy, but slow down and take a good look around. It might not be the one you should get.
- Don't get all teary-eyed. Take the emotion out of your home buying experience as much as you can. This will keep you from buying too much or the wrong style.
- If in doubt, invoke the 3 day rule. If you aren't sure, wait 3 days and sleep on it. You might think differently later.
- Make a budget and stick to it. If you know you can afford $X for a monthly mortgage payment, look slightly below that. You will inevitably fall in love with a home that will be $15,000-$30,000 more than your price range. Stay within your budget or you will be stressed each month when you make that mortgage payment.
- Don't necessarily go for the best deal in the neighborhood. This might get you into trouble as you never know all the intricacies of why the house is the "best deal".
- Be careful not to pay an over inflated price for a newly remodeled home. We have all watched the property shows on TV. If you are going to pay a higher price for a newly remodeled flip, make sure the upgrades are worth the money. The work should be done correctly and the products used should be high quality.
- Pick your home according to your needs, not wants. If you know you are going to stay in that home for several years and you are just starting your family, buy a home that you will grow into. Otherwise you will just need to buy a bigger home sooner than you will be able to profit from. On the flip side, don't buy a home that is too big just because you think your in-laws might come up twice a year and they need their own wing in your home for privacy.
- Don't buy before you buy. It is so tempting to buy furniture and new appliances to go into your new home before you close the deal in order to have everything ready to go when you move in. This might alter your ability to close on your loan. Better to wait and not have a new washer for a week than to buy all the new things and not have a home to put them into. (Don't laugh. I have known people who have suffered this event and sadly lived to tell the tale.)
- Don't forget that all important home inspection. I can't tell you how many times I have heard the sad stories of buyers that don't get a home inspection only to get bit in the butt later.
So don't just jump. Be smart about the largest investment you will probably ever make. I can't stress how important it is to trust your real estate agent. Make sure you are comfortable with them. We will talk about that tomorrow.
Talk to you later,
Christine
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