They say knowledge is power. I say it will also save you a pile of money and at least a few gray hairs! Here is my top 10 list of potential issues and pitfalls that can derail your home ownership dreams, or at the very least, complicate matters unnecessarily.
1. Waiting to purchase. Interest rates and prices are at an all time low. Investors have finally moved back into the business of buying. If investors think the time is right, shouldn’t you as well?
2. Not being pre-approved. Don’t lose out on a multiple offer situation (and yes, those days ARE back!) because you aren’t pre-approved.
3. Calling the name on the real estate sign. That person works for the seller. Their job is to get the seller the most money possible. You want an agent who works for YOU.
4. Falling for real estate advertising schemes. You are not going to buy 22 properties with no money down and no house payment until June of next year. Really, it’s not going to happen that way. Are there deals? Of course there are, but they aren’t gimmicks and it isn’t instant money from the good house fairy.
5. Not having your own agent. A buyer’s agent works for you and is FREE. Did I mention free?
6. Not emotionally prepared if you find the house. Some people aren’t ready to put pen to paper. If this is the case, talk to me, I can walk you through your fears and show you how I protect you and keep you safe through the transaction.
7. Failing to have a CMA. A Comparative Market Analysis can show you how much the house that you are buying is worth, so you don’t over pay thousands of dollars.
8. Third party influences. Yes, you want Mom and Dad’s advice, and maybe your best friend, and your inspector, your uncle the contractor, and the person you trust the most. Be very careful, however, that you aren’t listening to what someone else may like or dislike in a home because of how they live in a home. You may not care if the kitchen is big enough for 2 people to cook in, you may be happy with a microwave in a galley kitchen, especially if what you really care about is a huge master bathroom. Purchase the home for they way you live. Listen to your gut on this one.
9. Not requiring the proper inspections. Never in your life will a few hundred dollars spent on an inspection save you more heartache and money in the long run than during the purchase of a home. I always tell my clients that I’d rather they spent $400.00 on an inspection than $400,000.00 on a home that is structurally unsound. Not only that, but usually it is the last contingency that I have control over where I can get you out of the deal if need be. Spend the money, it’s worth it.
10. Making a major purchase before closing. You want a new car. I want you to have one too. AFTER you purchase the house. It’s easier to get a car than a house. Many, many times if you buy the car first, the lender will not allow you to purchase the home until the car is paid off. Unless you are paying cash for your car, or planning on living in your car, wait until the house closes, then talk to the car dealer.
Don’t let your friends and families make these common mistakes—call me today so we can protect them and keep them safe!