5 Common House Hunting Mistakes To Avoid
Buying a home is a huge financial decision that must be made after careful considerations. It is full of complexities but yet an incredibly exciting affair.
Because of the lack of knowledge about the current market and trends, homebuyers get confused and make mistakes that cost them a fortune in the future. However, if they prepare carefully for this financial investment, they can save their dreams from being shattered.
That said, if you are planning to buy a home anytime soon, you must thoroughly read this article that highlights the errors that should be avoided when house hunting.
Not Hiring A Real Estate Agent
The home buying process can be made a lot easier with the help of a professional. So, make sure you employ the services of a real estate agent before you start looking at properties.
With proper guidance and counseling, the broker can help you select a locality/ neighborhood, narrow down the choices, and make an informed decision. They can be your savior, advisor, negotiator, friend, and guide.
Not Organising A Professional Building Inspection
The last thing you want is to buy a house with structural deformities. That said, properties that are incredibly beautiful but have underlying problems in the foundation may cost you a great deal of money in the future. Therefore, you must hire a property inspector to analyze the condition of the house before you close the deal. Who said professional inspectors only perform commercial building inspections?
Property inspectors can help detect current problems with the structural integrity of the property, and also identify issues that may become major problems in the future. Even if you are buying a newly-built home, you must perform a new construction inspection.
Rushing To Make An Offer
While you may be excited to close the deal as soon as possible, it is not something that is recommended by the real estate market experts.
Don’t fall in love at first sight; however, if you find a home that offers many advantages upfront, consider making a quick offer. But that does not mean you won’t weigh the pros and cons of the property. In a situation like this, you must balance the need to make a quick decision with a need to make the right purchase.
Do not ignore how the neighborhood looks or feels. Even if you are planning to stay in the house for less than 5 years, you need to make sure that the surrounding area is safe.
Before your excitement wins over your sanity, sleep over the decision you are going to make. How well you sleep the night and how you feel about the property the next morning will tell you if it is the one.
Offering Much More Than What The Property’s Worth
It’s too easy to get sucked into a bidding war when you find a property that you think is your dream home. Of course, you will want to make the highest bid to ensure the house does not slip out of your hands, but that’s not what you should do.
There are a lot of problems associated with it. First, if the house doesn’t appraise at the amount you offered, the bank won’t approve your loan unless the seller reduces the cost or you pay the difference in cash. Now, in such a case, the shortfall on your bid in comparison to the mortgage will go from your pocket. Also, whenever you sell the house, if the market condition is worse than what they were when you purchased, you may be in debt and unable to sell the house.
So, make sure that the purchase price is reasonable for the location and the condition of the house.
Making Huge Financial Decisions During The Escrow Period
This mistake can alter your life, and make the situation difficult for you. Even if you get a mortgage approval, that does not mean you will get the money for sure. Once you submit your application, the bank vets your finances to check whether you are capable of repayment or not. So, if you make huge, rash financial decisions during the escrow period, your credit score will be affected negatively.
In a nutshell, during the home buying process, all the financial decisions must be very well-thought.
Buying a home is undoubtedly the biggest financial decision, but it does not have to be the most difficult. Being educated about the potential issues ahead of time can help you make a rational decision without letting your emotions come into play.
Hopefully, this article will help you make a house purchase that is good for your finances and feelings.