Here is a very helpful list of common mistakes that homebuyers make, especially if it’s their first time purchasing property. Thanks to Bankrate for these wonderful suggestions! If you have bought a home in the past, are you guilty of any of the pitfalls? Do a little bit of introspection and see if you can improve your “technique” the next time you set out to acquire a house. Here is the list of common errors made by prospective home buyers:
Not Having a Reserve Fund
One of the oldest, and most easily avoided, of the mistakes on this list. The experts warn that you should never “max out” your financial resources just to get into the home. Inevitably, there will be a few unexpected expenses the first few weeks you are in your new home, so a decent-sized reserve fund is actually a necessity.
Thinking Professional Advice or Help is Too Costly
Along the way, you may want to hire an appraiser or an attorney to help you solidify the deal. Sadly, many prospective home buyers decide to “save money” by not hiring the professionals they need. In the short-term they may save a buck or two, but in the long-run, not using pros to do essential tasks can cost you plenty.
Not Shopping Around for the Right Lender
Experts and financial veterans say that home buyers should always shop around for the best loan terms. Don’t assume you will get them from your own bank or local credit union. The housing market is a moving target, as are mortgage loan rates, terms, and other aspects of the deal. Make at least three inquiries about possible financing sources before you commit to one lender.
Using Verbal Put-Downs about the Property when Speaking with the Seller or Seller’s Agent
If you interact with the seller or the seller’s agent, it is never a smart idea to “trash talk” the property, no matter how much you dislike a particular feature. If you are serious about making an offer, do the professional thing and speak clearly, honestly and firmly about what you do and don’t like, without getting involved in value judgments and put-downs. Many a deal has been called off by sellers who feel offended by this type of behavior.
Setting Unrealistic Timelines
The experts say this is probably the most common error potential buyers make. Be sure to allow at least 90 days for business to be concluded. Remember, a home is a major purchase, and the transaction involves many people. Yes, it is possible to wrap things up in 30 days, but be smart and allow 60 to 90 days as a rule of thumb.
Lists like these bring to mind the fact that nowadays, more than ever before, it is essential to have a seasoned real estate professional by your side from the minute you decide to search for property. Note, too, that most of the errors on the above list can be easily avoided by anyone who uses a Realtor to help them locate a residential or commercial property.