Buyers-Common Mistakes that Homebuyers Make
Let’s face the facts: Buying a home can be an amazing experience, but it can also be quite stressful. With emotions running high, it’s inevitable that homebuyers will skip over crucial steps and make mistakes. But don’t worry! I’ve laid out some of the biggest mistakes that homebuyers make below so you will know to avoid them.
Low-balling the seller
If you find a house that you absolutely love, don’t play games: work with your agent to come up with a reasonable offer based on the sales of comparable properties in the area. Some buyers seem to think that taking their time and making a seller “sweat” is a good strategy for getting the best price possible. Don’t fall into this trap! You probably aren’t the only one looking for a new home on the market, so be sure to make a good-faith, reasonable, and supported offer if you find a property you are interested in. Don’t kill the deal by making too low of an offer or by making excessive estimates for repairs.
Not reading contracts
When you sign a real estate contract, you’re committing to a significant financial responsibility. While it seems like common sense to always read (and understand) all of the terms and conditions, many homebuyers do not. A good idea is to have your agent go over your contracts with you, section by section. Because contracts are legally binding, it’s crucial that you discover any issues BEFORE you sign.
Spending too much
Your pre-approval amount should act as a guide, showing you what you could pay for a home if you maxed out your finances. Your pre-approval amount should not, however, be the price that you buy at. Buying at the maximum of your approved price range will likely leave you “house poor,” which means you’ll be able to make the mortgage payment and cover recurring expenses, but then you’ll have little or nothing left for furnishing, upgrading, or staging your home. So instead of buying at the top of your approval level, but within your comfort level: a level where you’ll still have sufficient money left over for other things.