Buying a home is often an arduous process that requires months, if not years, of preparation. For a successful sale, here are 10 home-buying mistakes you should never commit.
- Not assessing your financial situation. The first step in buying a home is to determine how much you can afford. Naturally, not doing so will put a damper on the whole home-buying process. Not knowing what you can afford might lead to delusions of grandeur, putting you in a position that will cost you money and put you in debt.To avoid this mistake, assess your finances and create a budget. List all your expenses, both major and minor ones, then subtract the total from your take-home pay. The difference will give you an idea of how much you can spend on your new home every month.
- Not getting mortgage qualification. Banks sometimes do not agree with your idea of how much you can afford, especially if you have poor credit. To avoid wasting anybody’s time, make sure to get pre-approved. Sellers also often require home buyers to have mortgage qualification. Getting pre-approved, however, is not a sure sign your loan will be made
- Not considering additional expenses. Aside from monthly mortgage payments and your usual expenses, homeownership will add a slew of new costs, such as property taxes, home insurance, and maintenance fees.
- Being too selective. There is nothing wrong with being a discriminating home buyer, but being too picky and inflexible will result to not finding anything during the home-buying process. This is especially difficult if you have limited funds in the first place. Learn to compromise and prioritize home features that are important and within your budget.
- Not having enough vision. Some homes you will encounter during the home search might not have the paint you like, or the landscaping you prefer. Such factors might throw you off, even if the property as a whole is a great find. Lacking vision and letting small imperfections hold you back will result in you missing out on a good deal. Do not forget that fixer-uppers can be transformed into real estate beauties you can sell for more than what you paid for.
- Getting carried away. Say you overlooked the imperfections, especially when the seller said he will pay for the minor upgrades and cosmetic retouches. It sounds like a good deal, but do not get swept away or else you might end up paying more than the original asking price. As a rule, home buyers should look for homes that you can add value to as it increases in equity.
- Making compromises on important things. What are your priorities in life? What are your plans? If you are thinking of having kids in the future, perhaps it is best to opt for a 3-bedroom home than a smaller property. Of course, you will have to compromise on certain things especially if you are a home buyer, but do not let it become a big strain when it comes to non-negotiables.
- Not inspecting the home. Every home buyer is advised to exercise due diligence and inspect the home (or have it inspected by a professional). Neglecting to inspect is a serious mistake in the home-buying process, as it can cost you a large amount of money and plenty of headache. Make sure the property is sound as it is a large investment that can make a significant dent on your finances.
- Not hiring a real estate agent. You can certainly buy a home on your own, but hiring a real estate agent can do wonders, especially if you are a first-time home buyer.
- Not thinking ahead. When buying a home, it is important to think about long-term plans. Neglecting to consider the future ahead of you can lead you to a pit full of unpleasant surprises. Consider zoning laws, the current market condition of the neighborhood, and any developments relevant to property values and your life in general.
Avoiding the pitfalls of home-buying can be easy with a trustworthy and experienced agent by your side. For more information about home buying, particularly in the San Diego, CA area, get in touch with me today at 760 622 5087 or click here.