- #1 Choosing a bad agent
- #2 Refusing professional advice
- #3 Saying no to home inspections
- #4 Wiping out savings
- #5 Picking the wrong neighborhood
It is very exciting when you start the home-buying process! Heck, you might even feel like a child in a candy store.
Whilst this is a good thing, it also means that you are distracted and you are probably not even considering the fact that you could lose the home before you even bought it.
There are some factors that can’t be avoided like a bad market, but most of them are pretty easy to dodge.
Here are a few mistakes that you should avoid making when you are buying a home:
#1 Choosing a bad agent
This could be detrimental to the outcome of your purchase and it is basically real estate suicide.
Your agent should be expertly qualified in the field and should be your partner in purchasing a home; not just your real estate agent.
Unfortunately, many are poorly informed and they are only out to make a quick buck instead of giving you guidance and advice.
When choosing an agent, interview them first and ask hard questions that you want answering. If they are offended, they’re not the right one.
Avoid hiring cheap agents, regardless of their experience. Once you have signed on with an agent, stick with them and let them lead the journey.
#2 Refusing professional advice
If you knew everything there was to know about real estate, you would not be reading this article, would you?
Accept the fact that you don’t know everything and embrace the opportunities you have been given in order to receive professional advice.
Your real estate agent is your number one source of information: use them. If you want to do independent research start by looking up information online (remember to only visit credible real estate sites), read real estate books, or hire a lawyer so that you can understand the aspects of real estate law.
#3 Saying no to home inspections
Another big one you want to avoid: when home inspections are available or offered you should definitely take advantage of them.
Every home has its own little secrets that only a professional home inspector will be able to identify. How are you going to spot problems if they are hidden in the ceiling or inside the walls?
Of course, it is going to cost you a bit extra, but rather pay for an inspection now than pay for maintenance a year or two along the line.
You may even be able to negotiate for a lower price if significant faults are found.
#4 Wiping out savings
The age-old question is always: how much should you spend on a new home?
The answer is simple: as much as you can afford.
You should have a savings account ready as a down payment on a home, but if you have to start borrowing money from family members or charging maintenance to a credit card then you are spending way too much.
If you feel tempted to tap into that retirement fund, don’t even think about it. Your 80-year old self will definitely scold you for it.
#5 Picking the wrong neighborhood
You must be sick of hearing this, but the golden rule when it comes to real estate is location, location, location.
You are not going to be happy in a beautiful mansion if it is on the wrong side of town.
There are a few quick things that you can do in order to determine whether a neighborhood is bad or not:
- Check the local crime statistics;
- Talk to neighbors before you buy;
- Walk up and down the neighborhood during different times of the day to get a feel for it.