One of the largest expenditures a person will make is that of a new home. While exciting, it can also be scary. Mistakes are made, wrong advice is taken, and money may be lost. Although some problems may never be avoided, there are precautions that may be made in order to minimize them.
A large mistake that homebuyers make is not knowing exactly what they can afford. Unlike renting, homeownership comes with additional costs. Property taxes, insurance, and unexpected repairs are a few that need to be taken into consideration. These costs, in addition to other living expenses (vehicle expenses, credit card payment, groceries, etc.) should be kept in mind when determining what one can spend on a home. Being preapproved for a loan prior to making an offer will help both you and your agent find the perfect home that will fit your budget.
This leads me to the next mistake that is commonly made – the failure to use a real estate agent. With the internet offering information on listings, who needs an agent? It will only cost you more money in commissions, right? Wrong. Realtors act as a representative and are obligated to put the buyer’s interest first. They will manage the offers, inspections, and all of the pivotal steps in the transaction. Your realtor will be able to determine is the home is worth the asking price, provide community information about the property, and help guide you through the legalities of Preliminary reports and any restrictions the property may hold.
Think about the future when considering your new home. Take into account the neighborhood – what kind of development plan may be in the years to come? Visit the home at various times of the day. Is the lighting adequate? Is the neighborhood noisy? Would remodeling be necessary in the future?
Seeking the advice of industry professionals and doing the necessary homework will help to avoid any unnecessary pitfalls and make finding your dream home a fun, exciting experience.