Common Mistakes Home Buyers Make That Can Cost Them More Than The House
Avoid The Real Estate “Sandtraps” That Can Derail Your Home Buying Experience
No matter if it is your first time, or umpteenth time, buying a home is one of the most important decisions you’ll make in your life. Even if you moving up, down, or relocating and have experienced the home buying process before, things may have changed since you last closed escrow.
Just as there are strategies to selling a home, a home purchase can be made easier when you are in the proper mindset. Remember, you are not only buying a residence to live in, you are also making one of the most important investments in your life. That being said, we’d like to prepare you with a few tips that you can use to “keep it real” when you’re ready to purchase your next home.
Top Five Common Home Buyer Mistakes
1. Failing to get pre-qualified or pre-approved for your home loan
This is a biggie, and we see it all the time. We’ll get a call from someone wanting to see a property, yet they have no idea whether they can afford it or not. It’s not about wasting our time (Okay, maybe it is just a little!), but also your time. Knowing how much house you can afford should be the FIRST thing you do before you even think about stepping out the door to go house shopping. Find out what type of home loan you qualify for by clicking here.
2. Getting Emotionally Involved
There’s a fine line between what you consider your “dream home” and an investment. Of course, you want to find a home that suits your wants and needs, as well as invokes a sense of security for you and your family; but you also must keep in mind that in any negotiation, you have to know at which point you might walk away from the deal if the seller does not agree with your terms. Know also that in this market, you may be facing competition from other home buyers. Getting too emotionally attached in this situation may cause you to make decisions that may be from the heart, but not from your wallet, loan limit or resale value.
3. Buying the “White Elephant” Home
There it is, at the end of the street. Among a sea of single story tract homes is that one custom home that’s been remodeled right up to the sidewalk with the fountains, the extra story on top, and the extension that covers half of what used to be the backyard. No matter how great it looks or how it appeals to your sense of taste, homes like this have trouble with fair market value because there is nothing to compare it to in the neighborhood; and if they are selling it at a “bargain”, think of the price YOU’LL have to list it for if the situation arises where you’ll have to sell.
4. Buying “The Fixer” Home
Now it’s one thing if you’re a total DIY kind of person, or you have experience in replacing and repairing items in a residence, but if you’re coming from an apartment and your toolbox consists of 2 flathead screwdrivers and a bicycle wrench, you may want to contain your “repairman/woman” fantasies to the shows on the Home and Garden Channel.
Fixers can be great bargains, but they can also be money pits. Unless you’re able to assess exactly how much repairs will cost you before you make a commitment to the purchase, the unknown factors involving homes with a lot of deferred maintenance can become a strain, and deflate your home purchase happy face.
5. Second-guessing your home buying decision
Good for you! You’ve found the home of your dreams, we wrote an offer, and opened escrow. Then, at 2AM you wake up in a panic that you may have made a bad choice. We know, it happens from time to time. As we mentioned, buying a home is one of the most important decisions in your life. Most of the time these jitters die down after you’ve had some rest and realize that escrow is going smoothly; but if you’re ever in doubt after we’ve found you the home of your dreams, talk to us. We have had experiences where buyers who panicked and cancelled their purchase had severe regret afterward. That doesn’t mean we won’t listen to you with an open mind, and we’ll ultimately do what you feel is best.
We are your real estate advocates!
The Elgin and Pilar Walker Team have over 25 years experience with home buyers and home sellers. We make sure our clients avoid these and other home buying “sand traps”, and have years’ worth of satisfied clients to prove it. Questions about buying a home? Call us at (661) 290-3781 or shoot us a message using the quick form below. Remember, IT COSTS YOU NOTHING to hire us to help you find the home of your dreams!