Common Mistakes that Home Buyers Make
There are a lot of steps involved when it comes to purchasing a home and the process can be daunting – especially for people that are buying their first homes. This is the largest purchase you will probably ever make in your life so you’ll want to make sure that you do everything right. In order to help steer you in the right direction, here are some common mistakes that homebuyers make and we’ll tell you how to avoid them.
Not Buying within Your Budget
The first and most important thing you need to do is decide on how much you can spend on your home. This will be based on what you feel you can afford and not based on what other people may think. This also includes the bank.
When you apply for a pre-mortgage the bank will give you a set limit of how much you can spend. Never accept this amount as what you should be spending on a home. You need to decide how much you can afford and then let your real estate agent know that this number is firm and not negotiable.
Not Reading through the Contracts
There is a lot of paperwork involved with buying a home and many people just skim through the pages quickly before putting pen to paper. This is a common mistake and one that should be avoided. You are going to be signing legal papers so it is your responsibility to read through every word and make sure that you understand everything. If you have any questions, ask your real estate agent or your real estate lawyer for the answers. Once you have signed the document and the house has been purchased, you won’t be able to go back and have something changed.
Not Placing an Offer That's High Enough
If you see a home that you fall in love with and you want to put in an offer on it, make sure that your offer is high enough to be considered. The offer submitted should be reasonable and based on comparable property sales in the area. It’s a mistake to place an offer that is too low. You’ll probably end up losing the house to a higher bidder and the sellers may even reject any further offers from you since you insulted them earlier with an offer that was too low.
Consider the Extra Costs
There are other costs that will go along with the purchase of your house including real estate lawyer fees, insurance, a house inspection, taxes and other costs. While it’s great that you have enough money for a down payment, make sure that you also have some money on the side available to cover all of these extra fees. There may even be some things that come up that need fixing right away once you move in. Be prepared for the unexpected when purchasing a new home by having some extra money stashed away.
Use these tips to avoid the most common mistakes made by home buyers. Your real estate agent will guide you through the buying process and help you make the best decisions along the way.