Eight Mistakes To Avoid In Home Buying
Trusting a buyer’s agent or mortgage broker.
One of the most common mistakes home buyers make is in putting too much trust in professional housing market agents/brokers. These people’s first priority is making their commissions from the sale, which usually involves keeping the closing price as high as possible (something you as the buyer should try to avoid!) Do not let their great personalities fool you into accepting a bad deal.
Buying in a rush.
Too often a home buyer will make a decision based on their immediate needs for a home (in order to move out of their old place, or to secure a stable environment for their children before the start of a new school semester, etc.) This is the worst time to start looking for a home, as the sellers will often be able to exploit your desperation when negotiating a price.
Not bothering to research real estate agents.
Some agents are much better than most. Some are much worse-the agents you find that have many homes listed are the ones to go with. Unsuccessful agents with only a few homes listed are generally having problems closing sales. These agents will be less willing/capable to provide buyers with the best deals and the best properties in an area. Don’t waste your time with a poor agent.
Using a real estate agent at all.
Many buyers find that using a real estate agent is in and of itself a hassle that is best avoided. As mentioned, agents will only get money when selling high-sale properties, so they will often have conflicting interests with a buyer who is searching for affordable properties. Unless you have a high-spending margin, it’s perhaps best to go it alone.
Choosing the worst time to buy.
Buying in the summertime is when buying competition is at it’s highest. Most people are moving and shopping during the summer (the ‘off season’ as it were for most children and when many people take vacation hours). When looking for great deals, it makes much more sense to wait until the start of the winter holiday season when most people are settled in.
Overlooking HOA dues.
Homeowner’s association dues can be a costly thing to opt into when joining a housing community. If you don’t get any information about HOA dues from the seller, make sure you do your own research to ensure that the local authority is not problematic. Bad HOAs have frequent increases in monthly dues, without many benefits at all-avoid these communities, or those that are cryptic on HOA budget and monthly dues information.
Not negotiating on the listing price.
The listing price is not set in stone, yet many first-time buyers do not realize that they are often empowered to make an offer that is several thousands of dollars lower than the asking amount. Considering the seller is paying mortgage payments for every month they do not sell the house, there is always a lot of wiggle room especially in today’s ‘buyer’s market’ housing economy.
Trying to afford an expensive home on credit.
Perhaps the worst mistake to make for any buyer, using your credit to secure the majority of your new home’s price is probably not a wise idea. Anything over 3 times the amount of your yearly salary (in other words, something that will take you over 5 years to afford under normal circumstances) is a big risk that many currently-foreclosed homes should warn buyers against attempting.