Buying a home is one of the biggest purchases of your life and you want to be cautious that you don’t make any mistakes that you’ll regret later on. Here are the top four most common mistakes made when buying a home, along with tips on how to prevent yourself from doing them or how to recover if you have already made them.
Mistake #1: Not Getting Pre-Approved
The biggest mistake made by homebuyers and is the first thing you should do if you plan on buying a new home!
How to Prevent: Easy, get pre-approved! By getting pre-approved, you’ll be able to search for homes that affordable for you, while also putting you in a strong negotiation position when you make an offer. A Realtor can provide you contact information for a qualified mortgage specialist.
Mistake #2: Not Using a Qualified Agent
Why use a Realtor? 1. Convenient 2. Market Knowledge 3. Insider Knowledge 4. Identify Your Needs 5. Access to Comparables and Sales Information 6. Professional Negotiation 7. Mitigater of Emotions 8. Professional Connections 9. Knowledge of Industry Standards, Legalities and Writing a Contract 10. Buyer’s agent is free!
How to Recover: It’s never too late to get an Realtor, even if you’re already at contract, they can help with all the legal and negotiation aspects.
Mistake #3: Not Getting a Thorough Inspection
Getting a thorough inspection is the only way you’ll know you have real knowledge about the house.
How to Prevent: Hire a licensed home inspector. They take the emotion out of inspecting a home and give you a real, critique about the home you’re thinking to purchase.
How to Recover: If you didn’t hire a home inspector, try to get a good home warranty in case any issues do arise in the future.
Mistake #4: Focusing on Wants, Not Needs
This mistake is usually made by first-time homebuyers, but can happen to even the most experienced homeowner.
How to Prevent: Make a list of must-haves and refer to it when you’re house hunting. Make sure it is a list of NEEDS not WANTS.
How to Recover: If you’re in negotiations and realize you made this mistake, try using provisions of contract to either get out of the deal or fix the issues before you close.
