Did you know that more than 64% of Americans own the home they live in? Many of us dream of owning our homes, especially in today’s housing market. If you’re searching for your dream home, it’s important to know what common errors for new house buyers you should avoid.
Buying a home is intimidating, but with some help, you’ll tackle the task confidently. Read on for the eight biggest mistakes that beginners make so you know what to avoid!
1. Only Getting One Quote
While exploring your options for houses, it’s exciting to get your first quote. Many homeowner hopefuls will latch onto that quote and consider pulling the trigger before the opportunity fades.
Using such an aggressive house hunting strategy is viable, but you may miss an opportunity. It’s best to get several quotes and start comparing house prices. That way, you have a better idea of what’s available.
If you have a real estate agent, they can help you obtain quotes. Do your best not to settle before you have a real chance!
2. Going Without Help
Real estate agents sometimes ask for high fees that feel like they’re increasing the price. However, your real estate agent can give you invaluable advice that can help you get a better deal.
A reputable and trustworthy real estate agent can help you get the best price and the highest condition. Look for agents like John L. Scott Mukilteo and their team! These agents can help you avoid the many common errors for new house buyers.
3. Not Researching the Area
When we look for our dream home, we sometimes get caught up in the property itself. A crucial part of a home’s worth and value is its location.
You can see this by looking at different homes in different areas. See how much being near a school or popular entertainment options can increase the price. Being near downtown, museums, beaches, lakes, and other such locations will also affect this.
The safety of the area is paramount as well. Is the home in an area with a high crime rate or similar issues?
While these sound like minor factors on the surface, they can significantly impact your quality of life. If you intend to resell the home, it’s difficult to find buyers for a home in a bad location.
Research the area and do your best to understand the home’s locale. Having such information will never be a detriment!
4. Failing to Inspect the Home
One of the first things you should do for a home is inspect its condition. Some shady real estate agents may attempt to sell you on a home with hidden damage.
They may fail to disclose renovations or tell you how old the appliances are. Recent repairs, long-standing issues, and other problems all are important for you to know as the new owner.
Scheduling a house inspection should be first on your list! Talk to your real estate agent and see if they can help you with an inspection. It’s common for professionals to have a network that they work with, which can make your search for a reputable inspector quick.
However, you won’t need to inspect every home. If you’re serious about a home, it’s a good time to schedule an inspection. But if you’re just doing a walkthrough after its first open house, a full inspection may waste your time and money.
5. Ignoring Loan Programs
Speaking of time and money, how are you meant to pay for a house in today’s economy? The interest alone on a house is a staggeringly high cost!
When it comes time to present a down payment, you may struggle to put the funds together. You should look into local loan programs to obtain the funds.
Check your state, city, and local branches of banks. These bodies often have incentives for helping you obtain a home. Do your best not to sign onto a vicious interest rate and consider looking over the loans with your agent!
6. Spending Your Bottom Dollar
Loan or not, there’s a high chance that your funds will run low after buying your house. While this feels like the natural progression of buying a home, it’s a terrible situation.
If you drain your savings to purchase a home, you may find yourself unable to deal with the costs. Monthly payments, repairs, replacements, and renovations all will eat away at your funds. Make sure you still have a healthy budget behind you after you’ve purchased the home.
7. Lacking a Proper Budget
How are you meant to avoid spending that last dollar? The best way you can do so is by designing a budget.
A budget will help you keep track of and maximize your spending. You can put limits on how much you’re willing to spend and adjust your funds as you see fit.
For example, you should set a hard line on how much you’re willing to pay for a home. Once you’ve set that line, you should only ever lower the price. Don’t exceed your budget or you may run out of money in the middle of renovations!
8. Miscalculating Costs
The worst enemy of your budget is a miscalculation. The fees and costs of renovations often will reach beyond what you budgeted.
Contractors may need to work longer or materials may cost more. You may also underestimate how much a job costs in its entirety.
Do your best to leave a strong cushion in your estimations. With a safety blanket, you’ll never spend more than you anticipated spending.
Avoiding Errors for New House Buyers
Avoiding the common errors for new house buyers is difficult if you’re going alone. Consider reaching out to reputable and trustworthy real estate agents so they can help you in your journey. Keep a budget written, research the home you’re buying, and don’t jump on the first opportunity.
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