Buying a home is one of the largest purchases a person can make, which is why it’s so important that home buyers take their time with decision-making and work alongside people they trust.
To ensure that your home buying journey goes as planned, we at DSEAYCOM wanted to provide you with a list of the Top 6 Home Buyer Mistakes that people often make to help you avoid experiencing the same problems and setbacks.
You might also want to read: First-Time Home Buyers Guideline to Home Buying Process
Not checking your credit report and score
A clean credit report means a high credit score, which can help improve your chances of being pre-approved for a mortgage at a low interest rate. Before you start visiting open houses, make sure you get a copy of your credit report.
Review your credit report a few months before you begin your home search, so that you’ll have time to ensure the data is correct and dispute any mistakes before a mortgage lender checks your credit score.
Not utilizing professional help
Buying a home without the help of a professional real estate agent can be very challenging and has the potential to cost you added money and stress.
Realtors have access to tons of tools and information that homeowners do not, as well as crucial information and knowledge about the market. They have the ability to find homes in your target price range, and they will take care of communicating with homeowners and getting you the price you want. They can also inform you about competitive price offers, what you can demand and how to handle legal processes.
Agents at DSEAYCOM have the knowledge and experience to properly seek homes, negotiate and communicate with sellers for you so you don’t make any home buyer mistakes. If you need any assistance in home buying call us at: (205) 248-8373
Letting your emotions get the best of you
Among the top home buyer mistakes, falling in love with a property after a first visit is the most common, especially for first-time home buyers. While being excited about a property is a good thing, getting too emotionally attached can set you up to spend more than you can afford.
To avoid this mistake you must prioritize what you want in your home. Make a list of the most important qualities, then figure out what you aren't willing to give up. You won't find the perfect home that meets your entire list so narrowing it down to what matters most can help you through your search process.
We also recommend looking at no less than five properties before signing any contracts. We know it’s easy to fall in love right away but jumping on the first or second home you’velooked at will often result in remorse, overpaying and the inability to sell at a reasonable price down the line.
Underestimating the costs of purchase
Some home buyers think that if they've got a $50,000 deposit and a $500,000 home loan they will be able to afford a $550,000 property. The truth is, that there are many other costs involved, other than the price of the home.
There are several hidden costs that home buyers neglect to prepare for. They can be anything from the closing costs to appraisal fees, escrow fees, homeowner's insurance fees, property taxes, and moving costs. Another factor is the cost of repairs and maintenance.
It's important to remember that monthly payments don’t just include a mortgage; this is something that buyers often forget when figuring out their budgets.
See Related: 7 Budgeting Tips when Buying a Home
Not considering all aspects of a property
Home buyers immediately start thinking about how they're going to remodel the bathroom or how they might arrange their furniture. The tendency to get too far ahead and caught up with the aesthetics of a property often distracts people from considering other essential points.
Think beyond the home and the resale opportunities. Consider the school district, because even if you don't have children or plan on having any, the next buyer might.
A building inspection is a worthwhile investment for a number of reasons as well. Aside from their ability to bring potential problems to light, building and pest inspections can also be used to negotiate on the purchase price. We've all heard horror stories of buyers discovering structural faults, water or pest damage after spending their whole budget on purchasing the home.
Ready to make an offer? Here are some key questions to ask:
Is the home getting multiple offers? Has it been sitting on the market for a long time? Will it require a lot of upgrades?
Before making an offer, it’s important that you have answers to the questions above. An experienced agent can definitely give you answers based on their extensive knowledge on the market and they will help you come up with a realistic offer.
Overpaying for perfection
Looking for the perfect home that really don’t exist is also one of the most common home buyer mistakes.
You’re dealing with such large numbers when you’re browsing real estate that it might not seem like a huge deal to stretch another $10,000 or $15,000 to get the home you really love.
Home buyers look at the top end of their affordable monthly payment, and they don’t really think about what happens if their income goes down or if they have to change jobs. If you’re wondering what percent of your budget should go toward housing, check out the 50/20/30 Rule.
Unintentionally committing to these home buyer mistakes is common because sometimes homebuyers let feelings cloud their judgment. Knowing the top home buyer mistakes will help you to be cautious when it’s your time to buy a home. You can also plan ahead to avoid committing these mistakes and know how to deal with the situation if you do find yourself stuck in these kinds of scenarios.
At DSEAYCOM, we’re happy to answer any questions you have about buying and selling in the Alabama area. Call us now or feel free to share our contact information with someone you know that needs expert help buying or selling their home.
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