Buying a home can be an exciting but daunting process, especially for first-timers. Thus, it pays to do some research and connect with the right people to minimize mistakes and get that milestone done in no time.
These 5 mistakes are commonly committed by first-time home buyers and should be avoided:
- Not working with an agent
Many first-time homebuyers make the mistake of not hiring an agent. Instead, they choose to DIY the buying process with information gleaned from the internet, friends, and family. In the process, one ends up paying more or botching the paperwork. Working on this may also eat up time for other aspects of one’s life, such as work and family.
A seasoned agent brings years of experience and knowledge to the table.
They can easily guide their client through the buying or selling process, making it as stress-free as possible. The client’s interests matter most to them. Best of all, they will stay on top of paperwork. That way, a client can channel their energy on other areas of their life.
Another mistake to avoid is working on a deal because “Uncle Morris did it that way.” Trying to close a deal based on previously-completed real estate transactions by friends or family may not have the same results. That’s because most of these transactions don’t go through standard templates. It’s still better to listen to an expert who can adjust to the various nuances of the home buying or selling process – and that’s what real estate agents can do best.
- Not getting pre-approved for a loan
There’s nothing more frustrating than falling in love with a home, only to find out that it’s out of one’s price range. Or probably they settled for a home they were not exactly fond of just to stay within budget. Then they find out that there was something nicer that was still within their price range.
To avoid making these mistakes, it’s best to be armed with knowledge of one’s financial capacity. This can be done by getting pre-approved for a loan from a reliable lender or banker. They will investigate one’s credit score and income so they can provide an estimate of how much the buyer can borrow and afford fora home. This helps to streamline the search for a home that fits the buyer’s budget and requirements.
- Refusing to compromise
When a buyer is too strict with what they expect a potential home to have, compromising on these requirements can become too difficult for them. One must keep in mind that tradeoffs must sometimes be made in terms of location, size, and price when deciding on a home purchase.
One way to determine the kind of home the buyer needs is by making two lists – one containing non-negotiables and the other, home features that they are willing to be flexible on. The buyer should also determine if they want a shorter commute to work, more outdoor space, direct beach access, and so on.
- Failing to negotiate
There’s more to an offer than the price. Other factors can make a deal sweet, such as both parties’ willingness to close the deal quickly or to buy furniture and artwork. Waiving certain contingencies and repairs can also convince the seller to sign on the dotted line. This is what a real estate agent is good at – making strong offer that will be impossible for the seller to pass.
- Skipping the home inspection
It might be tempting to skip the home inspection once the buyer thinks they have found their dream home but doing so may cost more in the long run. A home inspection identifies any structural weaknesses and defects in a home. Essentially, it shows the buyer if they are truly getting what they are paying for.
Allison and Dave Estabrookscan help in avoiding the common pitfalls of buying one’s first home in St. Petersburg and in surrounding communities. Call them at 727-460-4061 or send an email to Allison(at)EisKey(dotted)com and Dave(at)EisKey(dotted)com.