5 Destructive Home Buyer Mistakes People Make and How to Avoid Them
The typical new home buyer spends much of their time fantasizing about moving into their perfect palace. But before you move in you have to find the right space. This can be a confusing and stressful process when it’s your first time. Don’t worry. Avoid these five mistakes, and you’ll have the right place in no time:
1. Forgetting Value
A lot of buying has to revolve around what you can afford. If you go above your budget home buying can hurt your financial future. But some first time home buyers forget about value. It’s no good to buy a home that isn’t right for you. If you move into a depressed neighborhood that costs you thousands on a commute or renovations, you may have lost out on value. A good realtor will help you calculate the overall value.
2. Fools Rush In
Don’t let excitement about the market, or your desire to move, influence your decision. That home you just saw isn’t the only option. Yes, you should be ready to act fast when the right value comes along. But feeling rushed or anxious can force bad decisions. It’s common to also miscalculate your estimated expenses. Purchasing the proper home insurance will protect you from the unknown. And since your home purchase is one of the largest investments that you’ll ever make, it pays to exercise prudent judgment.
3. Going It Alone as A Home Buyer
One of the biggest mistakes first time home buyers make is trying to go it alone. With all of the advances in technology, they may try and forgo using a real estate agent to find the right property. This is a huge mistake. Real estate agents can save you time and money. Unless you have great experience in the real estate market, you can fall prey to many issues and misconceptions without someone representing you. A good agent will help you through more than just finding a property. They can help negotiate the pricing, timing, and conditions.
4. Waiting On The Mortgage
Waiting to learn more about a mortgage could hurt your entire process. Unless you have a good idea about your financing options, it is probably too early to do any serious searching. You may find the perfect property only to lose it due to waiting for financing. A seller will likely take an offer with strong financing attached. If you work on the mortgage first, you’ll know more about your target range as well. It’s often best to start with financing.
5. The Creeping Budget
The perfect home is not perfect for you if it isn’t in your price range. If you fall in love with the wrong house, you could be inviting headaches down the road. It’s useless even to consider homes that don’t fit in your budget. Eight states saw an increase in foreclosures in the first six months of last year. A new home can be an incredible asset. It can also destroy your financial future. Know your budget and stick to it.
Avoid The Mistakes
Once you know the pitfalls, the average new home buyer faces it is easy to avoid the mistakes. You can focus on the exciting and fun process of finding the perfect new home. You may even want to set your sites beyond the United States. Purchasing abroad is easier than you think. Here are some great tips for purchasing abroad.