Buying your first home can be a daunting prospect. For the inexperienced home buyer, these common first-time home buying mistakes can really sour your real estate experience. With the right advice however, they are easily avoidable. Don't learn things the hard way! Steer clear from these home buyer pitfalls with some guidance from the experts at Del-Co Realty Group.
Losing out on the perfect property
New properties hit the market every day, and the difference between snagging and losing your dream home can come down to speed. If a competing home buyer finds it first, you could end up missing out on your perfect property because you weren't on the ball.
Luckily online technology has made things much easier for first-time home buyers. Custom search tools can help you find a home with everything on your shopping list, filtering results for price, square footage and more. Some sites even offer to send you custom updates on new properties just listed on the market fitting your pre-determined criteria when you register with their site. With resources like that on your side, you should find your dream home in no time.
Buying a fixer upper
Buying a project home may seem like a great way to save money, and an opportunity to turn a profit. That being said, more often than not, home renovations go behind schedule and overbudget. Many first-time home buyers underestimate the scope of a prospective renovation. Not sure whether you can afford to renovate a fixer upper into the home of your dreams? Bring along a contractor (be sure to ask for referrals) to the open house, and have him give you a rough estimate on the spot.
Passing on a home inspection
Many first-time home buyers forgo a home inspection to save money. Even if a home seems perfectly in order, it's in your best interests to get a professional opinion. Sellers often fail to mention issues to prospective buyers, which can cause you headaches down the road. Hire an independent home inspector to assess the condition of the property and to give you an unbiased account of any issues. Knowing this information ahead of time will not only prevent you from buying a lemon, but it will also give you some much needed leverage when it comes time to negotiate the sale. The potential savings alone will be well worth the cost of the inspection. Learn more about the home inspection process here.
Picking the wrong lender
All too often first-time home buyers find their perfect home, and place an offer, only to learn that their financing is preventing the sale. While all lenders may seem alike, we always recommend our clients to go with a preferred lender. With a prefered lender, clients get better rates as well as consistenly better customer service. Preferred lenders have to earn their status, meaning if they have the designation, they will deliver. To see a list of our preferred lenders, visit our mortgage info page.
Getting caught up in a bidding war
When demand is high and supply is low, first-time home buyers often end up spending much more than their original budget. That's because sellers raise their prices, forcing buyers to outbid their competition to close the deal. Overspending is one of the most common mistakes first-time home buyers make, and one of the easiest to prevent.
There's no reason why you need to rush your home purchase. If there's nothing on the market in your price range, be patient and wait until a suitable property hits the market. If waiting is not an option, talk to your real estate agent about having a backup plan, and line up a short-term lease in the event that you cannot find a home to buy right away.
Are you a first time buyer looking to find the home of your dreams? Contact Del-Co Realty Group online for more information. With over 30 years of experience behind us, we're here to make your first-home purchase a great experience.