Buying a home is a huge investment. Though it may take at least a full year to find a property that makes you happy while falling into your price range, it makes it all the more frustrating when you trip into one of the many blunders buying a home can lead to. If you’re on the market, be wary of these five mistakes to make sure you come out on top.
Skipping the Inspection
Typically done to save a bit more money, potential buyers will often forego the minimum $450 fee inspectors charge to perform a two- to four-hour search of the home to find and note any and all defects. While the home looks fine to you, trained professionals can easily point out poor foundations, failing roofs or terrible electric wiring. If not found, these things end up costing home owners thousands, much more than paying for a simple inspection.
Giving in to Bad Emotions
When sellers are showing you their homes, they are interviewing you as much as you are interviewing their property. A grumpy attitude, overly critical eye and otherwise negative emotions deter sellers from selling to you. They’d much rather hand the home to someone that appreciates the property. Instead of pointing out every tiny problem to the seller, save those points for the broker. Brokers are the ones that make sure the property is up to your standards before you close.
Assuming Appreciation
Homes are generally referred to as investments because so much money is poured into them under the assumption the property’s value will only increase overtime. This, however, is a bad way of looking at things. Remember the market crash of the 2000s? Without warning the housing market plummeted everywhere. Instead of trying to play the market, buy a house you plan on living in.
Lacking Preparation
New buyers especially are prone to being impatient. Instead of clearing up their credit history and collecting enough money for a down payment, they pounce on whatever opens up in the hopes they can close the deal before anyone else. Unfortunately, this means buyers with better preparation that can prove they can secure a loan will win out in the end.
Buying a home is much easier for the prepared. Take your time. Eventually you’ll find a great deal, and with the right preparation, will be able to close on it immediately.
Overextending Your Budget
Finally, know how much you can actually afford. The bank will give you one number while your actual finances will give you another. To determine how much you can truly pay, add up every monthly expense, including amounts to put toward savings, and subtract that from your monthly salary. The number left over is what you can realistically expect to afford.
This will then give you a much better idea of the type of house you can purchase while protecting you from going after properties that may cause you to default during financially lean times.
Buying a house should be exciting, but the smarter home buyers know what to prepare for. By researching, preparing and accepting your limitations, you can find the perfect property in terms of affordability and structural soundness without paying for it later because of mistakes that could have been easily avoided.
Tulsa Property Managers is a Jenks property management company offering professional property and real estate management, consulting and sales services throughout the Jenks and Broken Arrow, Oklahoma area.