Avoid These Common Mistakes When Buying a Home
Buying a home is a big decision that involves thinking about many different needs and desires. Your buyer's representative will want to know as much as possible about your preferences in order to pinpoint your best options.
In addition to determining basic parameters (such as square footage and price range) it's helpful to have a detailed conversation about your top priorities, in terms of features, location, and lifestyle. The questions below can help get your thoughts flowing.
1. Underestimating costs.
The purchase price may be the biggest item, but buyers also need to factor in several other costs, including property taxes, homeowner's insurance, utility bills, home maintenance, expenses, mortgage insurance (if your down payment is less than 20 percent) and possibly homeowner association fees. Buyers may also need to budget for some closing costs - either paid at closing, or wrapped into their mortgage.
2. Overlooking important financing details.
For most buyers, purchasing a home involves securing a mortgage. First, check your credit report and clean up any issues that might hurt your ability to get preapproved, or bump up the interest rate you'll be charged. Then, request loan estimates from several lenders and compare them side-by-side to make sure you're getting the best terms.
3. Not researching the neighborhood.
It's not easy for buyers to imagine themselves living in a home, while overlooking what it's like to live in a particular neighborhood. Be sure to consider schools, parks, safety, proximity to transportation, shopping, restaurants, or anything else that's important to you. Doing so will make your home feel like home in every sense of the word.
4. Ignoring resale value.
While house hunting, the idea of selling your new home may seem like a remote and distant prospect. Even if you imagine yourself living there forever, life often dishes out unexpected changes. It's important to consider how other buyers might react to your home and avoid a purchase you may later regret due to undesirable or hard-to-modify features.
5. Not hiring an Accredited Buyer's Representative.
You may be aware of buyer representation, but did you know that only a select number of real estate professionals have earned that Accredited Buyer's Representative (ABR®) designation? By completing special coursework, demonstrating prior experience, and keeping up on the latest issues and trends, a REALTOR® with the ABR® designation is a proven and skilled professional who can help you achieve the best results!