There are some common mess-ups that occur during home-buying. Whether these mistakes be emotionally-based, financially-based, or just from lack of knowledge, they can still be nipped in the bud before they occur.
- Trying to find a house by yourself: An agent knows what they’re doing; it’s their job. They can find you the best houses based on your price point, pros and cons, and the comps around the area. Of course you’ll probably still browse Trulia, Zillow, etc., but never let those be your only way to find houses. Let your agent also be your go-between with the listing agents you might come in contact with. They will know how to negotiate strategically, should you decide to place an offer.
- Keep your cool: Both sides of the spectrum are no-nos: acting out of desperation or hesitating too much. Don’t talk yourself into buying a home impulsively that isn’t completely right for you, or that is too expensive for your budget. But on the other side of this, you also don’t want to wait too long because of fear or unreasonable uncertainty. Also, be sure not to get TOO attached to a house before you buy it. Try to find a few houses you like so that if you lose one you won’t be devastated. Also, if you happen to find a house you like and get caught up in a bidding war, do not overpay for what the house is actually worth. You’ll regret it in the long run.
- Check out neighborhood by-laws and HOA fees: There might be some unexpected and unwanted rules and HOA fees.
- Understand the current housing market: Ask your realtor about things you don’t understand about it, to get a better grasp of monetary figures you’ll be presented with.
- Be sure your finances are in order: Saving enough for a down payment is awesome, but you also probably need to have saved two or three months of mortgage payments. Account for unexpected emergency expenses, closing costs, and property taxes as well. Next, make sure you’ve been pre-approved for a loan by a lender in order to be taken seriously. Also, know the expected price of your homeowner’s insurance before home-buying.
- Get a home inspection on the home you’re buying: This is good in case the seller doesn’t disclose everything, and also to know what you can ask the seller to fix before you close on the house.