House-Hunting Mistakes Most People Make

Buying a new property can be an emotionally-overwhelming process. If you allow your emotions to get the better of you then you may end up falling prey to some of the top mistakes most homeowners make. One way for you to avoid this would be for you to try and be rational and for you to also try and keep your emotions in check. If you can do this then you will be able to find a property that suits you, without compromise.

Not Knowing your Budget

The first major mistake that so many people make is that they have no idea what their budget is. If you fall in love with a property or a location then you may find that nothing else compares. You may find it hard to settle on the idea of getting a property that is smaller, or with fewer features and this can make it more emotionally difficult for you. If you want to work around this then you need to know your price range from the get-go. You need to understand what you can afford and why, so you can then put yourself in a good position, financially. Remember when you spend money on buying a home, you’re paying interest on it, and over the lifetime of your loan, you may end up paying a small fortune. Make sure that the property you’re buying is worth it and that you are not better off putting that money toward something else.

Skipping Pre-Approval

Make sure that you seek pre-approval before you go ahead with your application. What the bank thinks you can afford, and what you can actually afford are two different things. Be aware that even if you do have pre-approval your loan can fall through at the very last minute. A lot of this can come down to your credit score. If you happen to take out a credit card, or if you apply for a loan at the same time as your mortgage then this can influence your affordability, so be mindful of this. 

Not Shopping Around

You do have to be realistic in your search and you also need to be willing to compromise. Make sure that you aren’t buying a condo if you intend to have kids at a later date, even if it is cheaper. You need to find something that suits your requirements right now, as well as later, because if you don’t then you may find that you end up having to sell up sooner and this can work against you. If you are considering a condo, make sure that you are buying one that is in a top area so you can make sure that it is not going to decrease in value over time. Search on numerous property websites too so you can make sure that you are not throwing money down the drain by not knowing what is out there. You should also shop around for your mortgage as well. If you can do this then you will soon find that it is possible for you to get a solid rate.

Not Going through an Agent

When you are shopping for a home, make sure that you do not go through an open house if you do not have an agent or broker. Agents are held to the ethical rule of having the buyer’s and the seller’s best interests at heart. You might not be in the best position if you are working with a seller, who has an agent if you do not have one yourself. The majority of buyers buy their home through an agent, and even though you can save money by not going down this route, you do have to try and avoid it if possible.

Lacking a Vision

Sometimes buying a home can be stressful. You may feel as though the home you are looking at is too big, or too small. If you focus on things like this too much then you may find that you are not able to distinguish between what is fixable and what isn’t. Even if you cannot afford to replace the awful green wallpaper that is in the bathroom right now, you may find that it is worth living with for the time being. The main reason for this is that it is a relatively easy thing to fix, and it could be worth it if you like the size of the property and its general location. Of course, it is also helpful for you to avoid being drawn in by minor upgrades or even small cosmetic fixes. These are inexpensive tricks and sellers will often use them to play on your emotions. They will also try and get a higher price out of you, because of them. The last thing you want to do is pay  over the odds for something that just isn’t worth the money, so do not let little things like this push the price to more than you can afford. If you are looking for somewhere to live and struggle with addiction, then could be a good option.

Overlooking Flaws

Look for homes that have potential, especially if you are on a small budget. If you are going to be buying a home that needs some work then do not take on more than you can handle in terms of your money, time or ability. If you think you can do the work yourself then this is great, but if you are working weekends right now as it is then you may find that you just don’t have time to get it all done. You also need to take into account the cost of tools and materials. If you cannot afford all of this right now then can you in the near future? The last thing you want is to enter a  commitment that is going to limit you in terms of potential. If you enter a property and don’t touch it then the value may not increase and this can put you in a bad situation overall. If you want to do something about this then one thing you can do is calculate the cost of upgrading the property before you make an officer.

Posted by

My name is Anne and I am a local mommy blogger ... Momee Friends is all about Long Island and all things local with the focus on family

Leave a Reply