Shopping for a new home is an exciting experience. It can also be a time-consuming process riddled with details. Some buyers, caught up in the emotions of buying a new home, tend to overlook some items that can turn that purchase into an expensive process. Their errors fall into three general areas:
- Paying too much
- Buying the wrong home
- Losing a dream home to another buyer
When you have a plan before you shop, you’ll be sure to avoid these costly errors. Here are some tips on making the most of your home purchase:
Making an offer without enough information
What price do you offer a seller? Is the seller’s asking price too high? Is it a deal? Without research on the market and comparable homes, you could lose thousands of dollars. Before you make that offer, be sure you have researched the market. A professional realtor can offer an unbiased opinion on the value of a home based on market conditions, condition of the home and neighborhood. Without knowledge of the market, your offer could be too much. Even worse, you could miss out on a great buying opportunity.
Buying the wrong home for your needs
What do you need and want in a home? Sounds simple. Yet, clearly identifying your needs and bringing an objective view to home shopping, leaves you in a better position. Sometimes, home buyers buy a home that is too large or too small. Perhaps they didn’t consider the drive to work, the distance to school, or the many repair jobs waiting for completion. Plan ahead. Use your needs list as a guideline for every home you view.
Using an outdated survey
Before the purchase is completed, an updated survey is essential. This report will indicate boundaries and structural changes (additions to the house, a new swimming pool, neighbor’s new fence which is extending a boundary line, etc.).
Unclear title
Before you sign any document, be sure the property you are considering is free of all encumbrances. As part of their services, a realtor can supply you with a copy of the title to ensure there are no liens, debts, undisclosed owners, leases or easements.
Shopping without pre-approval
It only takes a few days to get financing pre-approval. When you are shopping for a home, this gives you more power. A seller is more likely to consider an offer from a serious buyer.
Unexpected repairs
For $300 to $500 a professional inspector will conduct a thorough inspection of the home. This way, you’ll have an idea of the cost of future repairs and won’t get any expensive surprises. Make the final contract subject to a favorable report.
Remember additional costs
Besides the funds for the purchase of a home, you’ll need funds for items such as loan fees, insurance, legal fees, surveys, inspections, etc.
Rushing the closing
Before you sign, ensure that all documentation clearly reflects your understanding and conditions of the transaction. Has anything been forgotten? Don’t rush. You could lose money, financing or even the sale.
Working closely with a licensed realtor with expertise in such transactions can help you avoid some of these pitfalls. If you have any questions please do not hesitate to contact us.