Yet More Tips for Home Buyers!
Posted by Lee Cameron on Tuesday, November 23rd, 2010 at 1:33pm.I feel like I write one of these every few months, but the advice is always useful. It's definitely a buyer's market right now, with inventory up and prices down and mortgages more affordable than ever. It's easier than ever to find a great home that you can afford. But that doesn't mean it's completely hassle-free. Many home buyers - especially first-timers - find themselves running into trouble. Here are some of the more common mistakes when buying a home.
1. Not Remembering That Beauty Is Only Skin Deep
Take a look at the market right now and what do you see? You see a whole lot of foreclosure properties and short sales. These are homes whose previous owners - often through inescapable financial hardship - were unable to afford their mortgage anymore. That means there's a good chance they weren't able to afford upkeep and repairs either. That's not to say that short sales and foreclosure properties are dumps. Many of them are in perfect condition. But like ANY property, you need to be willing to look for flaws that may not be visible on the surface. It's always best to know about problems ahead of time than to discover them after you've bought the home and are living in it. Home inspection - get one!
2. Loving the House, Ignoring the Neighborhood
You're always going to be focused on the house when you're looking for a new home, but remember - location, location and that other thing. The area that your new home is in will be just as important to your future enjoyment of the property as the property itself. Your beautiful house might come complete with noisy (or nosy) neighbors, a Machiavellian homeowner's association or even just a long commute to work everyday. Do some researching. Knock on some doors and see how your future neighbors like the area (and if they all refuse to answer their doors, that might tell you something too). Drive the route to and from work a couple times to get a feel for it. Go out and have dinner at one of the area restaurants. You want to be happy with every aspect of your new home.
3. Not Really Knowing What You Can Afford
It's easier than ever to get a good idea of how much house you can afford to buy. All over the internet are calculators and graphs and programs that will help you get a good idea of your financial situation. But the best thing you can do is talk to a lender ahead of time. No website will be able to predict how the bank will react to your loan request or how tight their requirements will be. Go straight to the source and get some real numbers and you'll be better prepared for your house hunt.
4. Putting the Low in "Low-Balling"
The news is filled with tons of great stories of home buyers getting properties for a steal. Prices all across the board have gone down and there are some great deals out there, but just because it's a rough market and just because a seller might be getting impatient doesn't mean you can expect them to accept a ridiculously low offer. Don't try to take advantage of the situation - that has a pretty good chance of backfiring. Instead, stick to reasonable offers based on what the market is doing. That way you can still find a good deal and you'll be far more likely to close on it.
5. Cutting Out the Agent
Ok, maybe this one is a little self-serving but that doesn't make it any less true. With numerous websites (including this one) allowing buyers to search MLS listing to their heart's content, many buyers think that they don't need an agent to help them find a home anymore. You know what? They're right. It is entirely possible to find your dream home using just the internet now. But finding the home is just the tip of the iceberg of what your agent does. You may be able to find it yourself, but do you feel comfortable handling the financing, scheduling home inspections, making offers, setting up showings, dealing with the seller's agent, handling contracts, organizing closings and the dozens of other things that your agent handles for you? Do you even have time to do all that yourself? Most people don't and that's why they hire a professional to help them out. It lets them relax a little bit, knowing that a professional has their back and is acting on their behalf. Most importantly, handling the entire process yourself opens up a HUGE list of all new mistakes that you, as a homebuyer, can make. Wouldn't you rather have someone you trust giving you a little help?
Try to take your time when buying a home. Think things through, do your research and make smart decisions. With some patience, determination and - hopefully - a little help, you'll be enjoying your new home before you know it.
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