Let’s
face the facts: Buying a home can be an amazing experience, but it can also be
quite complicated. With emotions running high, it’s all too easy for homebuyers
to skip over crucial steps and make mistakes. But don’t worry! I’ve laid out
some of the biggest mistakes that homebuyers make below so you will know to
avoid them.
Low-balling
the seller
If
you find a house that you absolutely love, don’t play games: work with your
agent to come up with a reasonable offer based on the sales of comparable properties
in the area. Some buyers seem to think that taking their time and making a
seller “sweat” is a good strategy for getting the best price possible. Don’t
fall into this trap! You will likely never be the only one interested in buying
a particular home, so if you find one that you love, get it before it’s gone.
Don’t kill the deal by making too low of an offer or by making excessive
estimates for repairs.
Not
reading contracts
When
you sign a real estate contract, you’re entering into a huge financial
obligation. And while it seems like common sense that you should always read
(and understand) all of the terms and conditions, many homebuyers do not. A
good idea is to have your agent go over your contracts with you, section by
section. Because contracts are legally binding, it’s crucial that you discover
any issues BEFORE you sign.
Spending
too much
Your
pre-approval amount should act as a guide, showing you what you could pay for a
home if you maxed out your finances. Your pre-approval amount should not,
however, be the price that you buy at. Buying at the tippity top of your price
range will likely leave you “house poor,” which means you’ll be able to make
the mortgage payment and cover recurring expenses, but then you’ll have little
or nothing left for recreation or other projects. So instead of buying at the
top of your approval level, but within your comfort level: a level where you’ll
still have sufficient money left over for other things.
