The top 14 mistakes that home buyers make...
Timing problems. Not planning your move to coincide with the end of your lease. Before you write an offer on a house, think about the closing date. Does it match with your lease termination date? If not, will your landlord allow you to break your lease or find someone to sublet your current home?
Forgetting to read the covenants and restrictions. If the home you're moving to has them, make sure to read them before you buy. There are many reasons to do this. As an example, some subdivisions don't allow pets. Some don't allow extra landscaping and/or don't allow trees to be pruned or cut down. There's nothing worse than being stuck in a new home with rules you can't live with.
Neglecting to get ALL agreements in writing. If the seller promises to do something for you "on a handshake", just tell him or her that you need it in writing. We know you don't mean to be rude. The truth is, however, that buying a home is a legal process. Everything needs to be on paper.
Not having a home inspection. We believe that you should always have a home inspection during the period just after your offer "goes together." This is otherwise known as the "attorney's approval" period. Good home inspectors are highly trained to look for the little things that the rest of us might miss, such as spots of wood rot, missing shingles, reversed polarity outlets, gas leaks, etc. A home inspection is money well spent.
Not using a local, full service real estate attorney. We think that it is next to impossible to buy a home without using an attorney. The amount of paperwork needed to close a home sale is monumental, and it is a huge mistake to try to handle it all on your own. Like a home inspection, this is money well spent.
Not taking a final walk through before closing. You should ALWAYS take a final walk through just before you close (Sandee and Clint always strongly urge their buyers to do so). Why? To make sure that all appliances are in working condition, to make sure that the walls and/or carpeting didn't get damaged since you wrote your offer, to make sure that the seller made any promised repairs, etc.
Buying the wrong sized house. Think very carefully about your present and, especially, your future needs, before you buy your next home. Are you planning a family? If so, make sure that the house you are considering has enough bedroom space. Do you have a dog? If so, a dog is much happier with a nice sized yard to run around in. Do you want to plant a big garden? If so, make sure that your future home has a large enough yard to grow a garden.
Buying a home in the wrong location. Decide on what type of location you want for your new home before you start looking. Do you want to be near schools? Do you want to back up to woods or a pond? Do you want to be within walking distance to shopping? Do your homework before you start home shopping.
Overextending yourself. Just because you qualify for a certain priced home, doesn't mean that you have to "max yourself out." Many people make the mistake of buying the most expensive house that they qualify for. This is often not a great idea, and we urge our buyers not to do this. If all of your money is going into your mortgage payments, you may end up not being able to go on vacations, not being able to go out to dinner, etc. In other words, you may become "house poor."
Choosing the wrong mortgage. Choosing a 30 year mortgage is not always the best option. As an example, your initial interest rates may be a little less than the standard 30 year interest rates if you go with a one, three or five year adjustable rate mortgage. On the other hand, a 30 year fixed rate mortgage is a real plus if the interest rate is reasonable, because your rate will not go up over the life of the loan. There are LOTS of mortgage plans out there, so it is critical to consult a professional before you decide on yours.
Under-insuring your new home. Don't forget to increase your insurance coverage as the value of your home appreciates in value. Also, make sure that all of your belongings are properly insured.
Buying a house too quickly. Don't be forced into feeling like you've got to buy the first house you see. Take your time. Make sure that you look at all the different home styles that are out there (raised ranches, splits, colonials, etc.), to find the style that suits you best. Look at different neighborhoods. What are your priorities? Decide on them and pick the house that best matches them.
Waiting too long. Once you find the perfect house, don't procrastinate. Countless home buyers have lost their dream home because they got cold feet. EVERYONE gets cold feet. If you really want to buy a house, and you find the right house at the right price in the right neighborhood, go for it!
Buying a house that is difficult to re-sell. Even if your perfect home is next to the tollway (or even a busy street), don't buy it. Homes that are in bad locations are MUCH harder to re-sell, and someday you may want to move again. We always urge our buyers to think carefully about the location of the home they are interested in before they decide to write an offer on it.
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