To protect yourself, your finances, and your family, you must avoid common first-time home purchase blunders. Here are the top 4 home-buying blunders, along with advice on how to prevent them:
1.) Choosing not to hire an agent or realtor
Many buyers think that they know it all, or that they can close a real estate transaction on their own.
The majority of individuals would consider buying a home without the assistance of a real estate professional. It’s tempting, especially after seeing so many “for sale by owner” signs on people’s front lawns or on the Internet.
Purchasing a home without the assistance of a realtor can be less expensive, but it can also be time-consuming and risky, especially if you are a first-time buyer.
If you’re serious about buying a house, don’t go to an open house without first consulting a real estate agent or broker.
An excellent agent is usually looking out for your best interests. They’ll assist you in determining a fair and competitive selling price for your house, improving your chances of a rapid sale. A realtor can also help to de-emotionalize the process by talking with possible purchasers and weeding out tire kickers who are simply interested in looking at your home.
Agents are bound by the ethical norm that they must operate in the best interests of both the vendor and the buyer. However, you can see how negotiating with a seller’s agent before contacting your own agency may not put you in the best negotiation position.
2.) Lacking Vision
A big part of house hunting is figuring out what’s fixable and what’s not. A homebuyer might feel like Goldilocks in the three bears’ house at times: This is too big, this is too small.
Don’t let cosmetic flaws scare you away if the home satisfies your needs in terms of the big elements that are impossible to improve, such as location and size.
Simultaneously, don’t be fooled by modest improvements and cosmetic tweaks. These are low-cost gimmicks that vendors employ
Sellers employ these low-cost methods to play on your emotions and demand a much higher price tag. Sellers can spend as little on minor modifications or as much as several thousand dollars on staging. Furthermore, conducting house improvements yourself, even if you have to employ a contractor, is typically less expensive than compensating a seller for the enhanced home value after they have already completed the work. And you can do them according to your own preferences, not those of others.
3.) Ignoring the Neighborhood
A house is one thing, but the neighborhood is located quite another. A particular house can so enthrall many a homebuyer that they overlook the neighborhood or area in which it is located.
Don’t only glance at the house; take a peek at the surrounding environment as well. Of course, it’s impossible to foresee the future of your chosen neighborhood with absolute certainty, but inquiring about or investigating its prospects today can help you avoid unpleasant shocks later.
You should ask the following questions:
- What kind of neighborhood development plans are in the works?
- Is it conceivable that the roadway will become a major thoroughfare or a popular rush-hour shortcut?
- Is there talk of a nearby bridge or roadway being built in the next five years?
- What are the advantages?
- Is there a lot of vacant property nearby? What is likely to be constructed there?
- Has the neighborhood seen a rise or fall in housing values?
If you’re satisfied with the answers to these questions, the location of your possible home can retain its rosy hue.
ALSO READ: How Important is Location in Your Real Estate Investment?
4.) Failing to Get a Home Inspection
Home inspections differ from appraisals in that they analyze the construction and other aspects of the property, generate a detailed report on their findings, explain any difficulties to the homebuyer or homeowner, and provide advice.
Home inspectors look for major structural issues, needed repairs, and the state of the included appliances. Their job is to make sure the house is habitable and that everyone understands the condition of the house before the sale is finalized. You could end yourself with a money pit of a house if you neglect a home inspection.