The real estate concept has become very competitive in the past few years and changing rapidly. This is the reason you must know these House-Hunting Mistakes so you can avoid doing them.
Most people feel like they can find a home if they keep looking, but this is not always the case. There are some classic mistakes that people make when they are house hunting that can cost them in more ways than one.
Some of these blunders include failing to understand their budget, getting carried away with an area’s accommodations when there are other areas with more affordable homes, and failing to focus on what they need in a home at all.
Most Common House-Hunting Mistakes To Avoid
It’s important to know that you don’t want to jump into something without taking your time to explore everything out there.
Be sure to do some planning and avoid these seven house-hunting mistakes to ensure that the process goes as smoothly and stress-free as possible.
House-Hunting Mistakes #1: Failure to organize one’s finances
Almost every aspect of the house-hunting process can be inspired by how you organize your finances. Before you even begin looking for your dream home, assess your financial situation and determine how much you can afford — not just how much cash you’ll need at closing, but also how much you can budget each month toward a mortgage for the next 15 to 30 years. Don’t forget to include monthly expenses for home maintenance and repair.
Theoretically, run your credit report a year before you want to buy and see what you can do to improve it. Dispute any negative marks you believe were made in error, and pay off as much debt as you can to reduce your debt-to-income ratio, which lenders closely monitor when deciding on mortgage terms.
House-Hunting Mistakes #2: Waiting to be pre-approved for a mortgage.
You’ll be best served, especially in a seller’s market like we have now if you get pre-approved for a mortgage before you start visiting open houses. Pre-approval means that the lender has already reviewed the fundamentals of your finances, and if everything remains the same, you will most likely be approved for your loan.
Pre-approval shows a seller that you’re a serious buyer who won’t back out of the deal because your loan isn’t approved. This means you may have an advantage over other buyers because sellers want the deal to close so they don’t have to start over. If the mortgage isn’t approved, they’ll have to start over with a backup offer or relist the home.
House-Hunting Mistakes #3: House hunting without the advice of a real estate agent
A good real estate agent can mean the difference between getting your dream home and letting it pass you by. Don’t go with the first agent you meet or because they’re the aunt of a coworker. It is perfectly acceptable to interview several agents in order to find the best fit — both in terms of personality and experience.
Take note of the types of transactions that the agent typically handles — you’ll want to ensure that they’re comfortable finding homes in your price range and area of town. Find a real estate agent who will be honest and upfront with you; after all, a home is likely to be the most expensive item you will ever purchase. You want your agent to tell you if your bid is too low or if you’re asking for unreasonable repairs that will jeopardize the sale.
House-Hunting Mistakes #4: Being overly picky in your home criteria
Real estate agents have a saying “buyers are liars.” Agents know from experience that a buyer may believe they’d never consider buying a home with only a one-stall garage or in a specific area, but if an otherwise perfect home comes on the market, they’ll change their criteria
You’ll have a much easier time finding a home if you keep your options open. Plus, as you visit more open houses, you’ll get a better idea of what you like — & it might be very different from what you initially thought.
House-Hunting Mistakes #5: Ignoring the Nearby Area
Have you ever heard of the impact of a good neighborhood? While you may be able to plan the future of the neighborhood, it is best to inquire. Some of the questions to which you must find answers are as follows:
- What are the area’s development plans?
- Is there a lot of underdeveloped lands nearby?
- Is it likely that the street will become a rush-hour shortcut area in the future?
- What are the local zoning regulations?
If you are satisfied with the answers to these questions, proceed with the purchase of you’re new home & request that the real estate agent complete all paperwork.
House-Hunting Mistakes #6: Choosing not to hire a home inspector
Even if you plan to buy a home “as is” with no repairs, a home inspection is always a good idea. Having a professional inspect you’re home for minor flaws is a low-cost investment that can save you thousands of dollars in the long run.
Simply hiring a home inspector does not obligate you to request repairs or tenders from the seller. It can simply inform you of which items will need to be repaired or replaced once you move in. Based on this information, you can then make an informed decision about where the home is right for you and you’re bank account.
House-Hunting Mistakes #7: Taking the moving and closing costs out of your budget
You’ve probably thought about how much you can afford, how much you can put down as a downpayment, and how much your monthly mortgage payment will be when it comes to buying a home. However, there is a slew of other costs that are easy to overlook.
Moving costs should be considered when making your plans, especially if you’re moving across town. Budgeting for moving trucks and/or moving crew, as well as storage, fuel, and insurance, are all necessary steps in the process.
Closing costs can also surprise buyers if they aren’t sure how much they’ll have to pay. While you would not have to pay realtor fees, you will have to pay closing costs for your mortgage, escrow for you’re homeowner’s insurance & taxes, & title insurance fees. While these expenses can quickly add up, keep in mind that you may be able to claim home buyer tax deductions when you file your taxes for the year.
Avoiding these House-Hunting Mistakes can save you time, money, and headaches
You can save yourself a lot of time, money, and stress by organizing your finances and planning ahead of time for you’re home search — and make the house hunting process a lot more enjoyable. Besides this, a real estate professional will be your go-to person when it comes to making house-hunting decisions. Hire one here!