10 critical mistakes home buyers can make, when purchasing a home
This blog is designed to save you time and give you content. Looking to buy a home? why not learn from other home buyers mistakes? Purchasing a home is a huge decision and with that comes a lot of stress and preparation. Our goal as real estate agents is to minimize the stress and help prepare you to make the decisions that will affect the outcome of this process. Learning from other people’s mistakes can save you a lot of heartache and time. I’m going to do an individual blog for each of the 10 mistakes for more detail. But for now let’s just take a quick look for all of you speed readers.
1) Making an offer on a home without being prequalified
There are steps to the process that have to be done in a certain order. When you jump from step one to step seven, they’re going to be some holes in your approach. You have to take the time to visit with a mortgage professional. They will help you to determine where your comfort level is, what you can afford and most importantly what your monthly payment and obligations will be.
2) Not having a home inspection
Skipping this step is not recommended. It’s one of the cheapest insurance policies you will ever purchase. It runs around $400 to have a professional inspector come in and assess the property are going to purchase. You need to know not only if there any hidden issues but also how your home functions. After the papers of been signed and you on the home, it’s very hard to go back to the seller and complain if you haven’t had an inspection.
3) Limiting your search
Too many buyers get hung up on the idea that craigslist or any other particular website have all of the great deals. This is simply not true because information changes so rapidly now with the Internet. You have to have several different searches set up for you in several different places to make sure that your covered adequately and will see all of the homes that are for sale. The first one to start with is a direct feed from the MLS. This can only be obtained through a real estate agent; it’s not something you can do on your own.
4) Choosing a real estate agent who is not committed to forming a strong business relationship with you
Any time you are in need of hiring someone to do a service for you, it’s always in your best interest to take the time to interview several different people to fill that need. We come from all different types of backgrounds and all different types of experiences. You need to work with someone who you feel is willing to not only investing you but also in the process of helping you find a home. Don’t just pick somebody that’s a part-time realtor. Who you choose to represent you is one of the most important decisions you will make in this process.
5) Thinking there’s only one perfect house out there
I tell my clients on a regular basis for every home that sells another one pops up in its place. I couldn’t continue to do that if it weren’t true. I truly believe you will land where you should and buying a home is a process. You have to be patient and be open to the idea that what you think you want to the home may drastically change from the beginning of the process to the end when you actually purchase a home.
6) Not considering long-term needs
Don’t buy a home that’s smaller than the home you’re currently living in. That’s one example of a long-term need. If you’ve outgrown your home before you even move-in, that’s can be a problem. The other part is even though it’s your home; you have to remember it’s an investment. You want to buy smart so that one day when you do go to sell, you have a home that appeals to the largest buyer pool.
7) Not examining insurance issues
Insurance can be a really tricky thing and most people don’t understand, I can’t say that I understand it all that well either. The one thing I do know is you need to have a home insurance. Especially the right type of insurance. Unfortunately there’s no quick way around this and you need to view all of your options to pick the right plan for you and your family. Too many buyers gloss over this and it ends up creating a problem for them later.
8) Not buying a home protection plan
This is on a case-by-case basis and there are all different types of plans that are available. There are home warranty packages that cover a lot of different things from siding to roofing and everything in between. The caveat is you have to read the fine print. There are other home protection plans that are nothing more than appliance warranties. There’s nothing wrong with these either but it depends on the type of home you’re going to purchase. If you’re buying a home that’s only a couple of years old than maybe the most important thing is a structural warranty plan that may already be available from the builder. Where is if you buy a house that has a furnace is 20+ years old you may want to plan that’s going to cover that plus other appliances.
9) Not knowing the total costs involved
You don’t have to be an MBA to go over all this but it is in your best interest to ask questions and take the time to review your documents. We as an industry are here to help you as is the lending industry. You need to take time out of your day to know what your interest rates going to be. How much your have to put down along with how much your monthly payment is going to be. Sounds silly but you’d be amazed at how many buyers don’t even ask those questions until they’ve already written a purchase agreement on a home.
10) Not following through with due diligence
This last one pretty much covers all of the above. As a real estate agent I can answer any question you have. If I don’t know the answer I will find it for you. I will give you as much information as you ask for and try my very best to always give you my professional opinion. However you still need to read through your documents, ask questions and have a basic understanding of the process. Knowledge is power and the better prepared you are to purchase a home, the better the process will be.
Please look for detailed blogs and videos over the next several weeks detailing all of these 10 mistakes. If you have any questions or concerns please feel free to call or email
Tom Sommers Coldwell Banker Burnet 952-994-7204