7 Common Real Estate Buying Mistakes – Don’t Ignore Number 3!
Buying real estate isn’t something that should be taken lightly. Buying a home or even a property to rent out is a huge purchase, and there are so many ways you can make mistakes. Below we have 7 common real estate buying mistakes you need to be sure to avoid when it’s time for you to buy your next property. Take a look:
You’re Not Doing Enough Research
Doing plenty of research before you commit to buying in an area is very important. You should be consulting with a trusted professional who knows the ins and outs of the area so that you are well aware of what you’re getting yourself into. You should know about upcoming developments, the areas that are growing, and any homes you have looked at that are near construction. A great real estate lawyer can simplify the process. Having a detailed understanding of the neighborhood will help you to predict the value of the property over the years.
You’re Ignoring Your Budget
Ignoring your budget is a bad idea. You need to work out your budget including your BAH, living expenses, investments, extracurriculars, and expenses so that when you purchase your house, you’re not struggling and adding unnecessary stress. Figuring out a realistic budget and then making sure you stick to that budget is key. Don’t view houses outside of your budget!
Letting Yourself Fall In love With A Property
The second you allow yourself to fall in love with a property, is the second you start making it ok to ignore red flags that you may otherwise spot as you view the property. Ignoring the home’s imperfections could leave you with a huge bill on your hands, and a lot of extra work. Do not go into your house hunt emotionally, under any circumstances.
You’re In A Rush
It’s normal to feel under a little stress to find a place to live, but the last thing you want to do is pick a place out of desperation. This will cloud your judgement, and you’ll feel rushed into buying a house that is not right for you.
Buying a house is different to going to the store and buying something. You can easily negotiate the asking price – in fact, it’s expected. Just make sure you are reasonable, as offering too low won’t do you any favors. Consider negotiating repairs and appliances in the contract, too.
Overlooking Buying Expenses
Don’t forget the other costs you’re expected to cover when buying a property: closing costs, a home inspection, commission, home insurance, repairs, and utilities – and that’s not all of them.
Thinking You Can Fix Up The House Yourself
Unless this is something you do for a living, avoid attempting to fix up the place yourself. You might convince yourself that you’ll be able to buy your dream fixer-upper if you do this, but it could cause more issues in the long run. Make sure you factor in professional work you may need done on the house, so you can do the maths properly.