These errors can cost you the chance to buy your dream home, and they can set you back financially.
Don’t blindly listen to advice from family and friends when searching for a new home.
When you’re buying a home, a lot can go wrong. Your seller, the lender, the appraiser or your real estate agent could do something to inadvertently sabotage the purchase of your new home. And, yes, even you could make a mistake. Homebuyers make plenty of them.
And in today’s home buying market, where demand is high and supply isn’t, you can’t afford to make any mistakes. This doesn’t even begin to scratch the surface of what could go wrong, but if you’re looking to buy a house, do what you can to avoid making these classic home buying blunders.
Not having your financing ready when you make an offer.
If you want a house, and you love it, you don’t have any time to waste.
In today’s environment if you love the house, don’t leave without putting in your offer, or the next family will. Countless times over the last year families have experienced heartbreak by thinking about it. Get your offer in fast, and think about it during the negotiation. Don’t lose your dream home.
When you make your offer, you shouldn’t suggest that you pay less than what the homeowner is asking. In today’s seller’s market, their often in multiple offer situations, and sellers have little patience for low offers.
Not looking at homes before you’re ready to make an offer.
This is the period of home buying where you’re window shopping and learning about buying a house. But many homebuyers skip this stage ‘DONT!”
We recommend going to open houses as soon as you know you’re in the mindset that you want to buy a house. Just know that even if you fall in love with a home, you won’t make an offer since you haven’t lined up the financing yet.
The more properties you can visit in the early stages of a search, the more confident you’ll feel ABOUT signing the offer when you do find – the one.
By looking at a lot of homes early in the process, it will help you learn what you’re really looking for, give you practice evaluating potential homes with some emotional detachment, since you’re not ready to offer anyway, and motivate you to keep moving forward as you see things come on and off the market – EDUCATE YOURSELF REALTY IS A CUT THROAT BUSINESS.
And this goes for any homeowner, and not necessarily first-time buyers. If you’ve been off the market for more than a year, you’re out of practice. Trends change along with the economy.
Skipping or skimping on the home inspection.
Many real estate agents are saying this is happening more and more, especially in a climate where home buyers are trying to close a deal before anyone else does – DONT DO THAT
Some buyers want to save a few hundred rand’s by not having an inspection done or by having a family member or friend who isn’t a licensed inspector do the inspection. This is a very big mistake.
The reasons why it’s a mistake should be obvious – if there are roof leaks you don’t know about, foundation problems, mold, termite issues or any number of reasons you might not want to buy a house, an inspector will probably find them. Otherwise, you’ll find them…someday.
Blindly listening to advice from friends and family members.
So you think you’ve found a house, but this is your first one, and you think it’d be a good idea to bring in Mom and Dad to take a look at the home with you. That can be a bad move.
This one is common with first-timers. They go see 10 homes after eliminating 50 on the internet, and they invite the parents or “Uncle Joe” to see the home.
Because your parents and uncle care about you, any potential problem that they spot, they’ll share with you. And while that’s admirable that they’re looking out for you, they didn’t look at 50 homes on the internet or go to those other homes.
They’re basing their decisions on their current perspective of their living situation. If you’re going to rely on advice, then make the person go through as much of the process as you can.
Chances are, if you start talking to friends who are homebuyers, they’ll tell you stories of how a parent or in-law once talked them out of buying a home, and how ever since they’ve wistfully wondered if they made the right decision.
Buying a too expensive of a home.
This happens a lot.
Some buyers get their pre-approval letter from the bank and want to look at houses that are at the very top of their price range, without thinking it through.
You should be thinking about not just those monthly bond repayments but the cost of owning a home.
That is, you need to be thinking about how much it’ll set you back when you buy a lawn mower or pay a service to cut your grass. Think about the monthly rates and taxes. You’ll want to keep in mind that when you buy a home, you’ll soon be making the owner of a local furniture store very happy. If you plan on having kids, someday you’ll be begging them to turn off the lights and asking, “Do you think I’m made of money?”
In other words, to have a better future, think about those future costs as it’s not just a monthly bond repayment you’ll be paying for.
With over 11 years of specialized experience in the debt & legal field Oyisa United Debt Specialists is committed to assisting South African consumers in financial liberation.