During the process of home buying, mistakes may be made. However, there are some missteps that buyers can easily avoid.
A home will likely be the largest financial commitment made in any consumers life, so it is important to make sure that all the proper steps are taken for the process to be completed smoothly.
Not doing proper research and preparation
Before entering the home buying process, proper research and preparation needs to be completed, according to BankRate. Buyers need to know their assets, debts and credit score so they can come up with the numbers that they believe they can afford when buying a home. If a buyer knows all the aspects of their finances, it will save them time, as they will not look at homes outside of their price range.
It is also important to do research on the neighborhoods that a buyer is looking in. If kids are in the future, the quality of the school system is a big priority. Buyers may also want to know about the crime rate in the area.
Lastly, while preparing to buy a home, a buyer needs to realize all that comes with ownership. Not only will they have to pay for the cost of the home, but they will have insurance, property taxes, repairs, landscaping and improvement costs as well.
Falling in love with a house
When house hunting, it's OK to be enamored with a property. However, it is important to not let the seller find out about these feelings, according to BankRate. If the seller does, in fact, find out, they could potentially use it as a negotiating tool to raise the price of the home.
Not getting pre-approved
Before entering the market, it is wise to obtain financing. Getting pre-approved will let the seller know the buyer is serious about buying the home. It will also allow the buyer to know exactly how much money can be spent on a potential new home. Failure to do so could result in unwarranted problems that could increase the length of the home buying process.
Not obtaining a mortgage financing clause
According to BankRate, it is important to get this clause written into the buyer/seller contract. If the home doesn't appraise for the offered price, the mortgage financing clause will allow the buyer to either cancel the sale or renegotiate a new price.
Buying a house that is tough to resell
Ultimately, buying a home is an investment. In order to ensure that it is a good investment, buyers need to purchase homes that will be able to be re-sold in the future for a profit. Factors to consider are the neighborhood and the marketable features of the property, such as a nice patio space or new appliances.
Not obtaining a professional inspection contingency
Much like a mortgage financing clause, it is recommended to have a professional inspection contingency into the buyer/seller contract. If hidden flaws or structural damage are found during the home inspection, this contingency allows buyers to renegotiate or back out on the deal.
Making a lowball offer
While buyers will be looking to get the best deal possible on a new home, making a low ball offer is not the right way to start off a negotiation. An offer that is slightly lower than the asking price is expected, but an extremely low offer may turn off the seller and hurt the negotiation process.
