Avoiding many of the common pitfalls that are associated with buying a home in 2013 can save you thousands. A great number of home buyers concentrate primarily on the home buying process, not giving sufficient attention to the problems that can prove costly. Prior to purchasing a home, familiarize yourself with the potential stumbling blocks to ensure that you’re geared up and ready to tackle the home buying process.
The top five pitfalls when buying a home include:
- Not seeking mortgage pre-approval
- Selecting a less than optimal realtor
- Not budgeting for repairs
- Being pulled into a bidding war
- Selecting a sub-par home inspector
Waiting too long to seek pre-approval for a home loan can be a major mistake. Nearly all home sellers prefer to know that any prospective buyer who makes a purchase offer is pre-approved for a mortgage. Without this reassurance, the seller is likely to leave the home on the market while mortgage approval is sought. In the meantime, another buyer can come along and purchase the home you wanted.
There is certainly no lack of real estate agents to compete for your business. Just because someone has their real estate license does not mean that they are a trustworthy selection. You want a knowledgeable professional managing your real estate purchase. It may take some time to screen agents prior to making a selection, but this will be time well spent.
First-time buyers often act on impulse and forget to budget some funds for repairs. Home buyers have to be financially prepared to cover any unanticipated repairs, as well as the regular maintenance which will likely be needed as time goes on. One of the major causes of foreclosure is premature home purchases. Do not make the mistake of entering into the home buying process without being financially ready.
Bidding wars occur whenever a home receives multiple purchase offers from two or more home buyers simultaneously. In most cases the listing agent for the seller will inform each buyer’s agent to submit their maximum offer due to the fact that multiple offers are in place. This tactic is used to drive the sale price higher. Instead of getting into a bidding war, submit your offer in the amount you’re prepared to pay. Only budge if the home happens to be an amazing bargain or is a home you absolutely cannot imagine living without.
Choosing the best possible home inspector to conduct a complete inspection of the home you'd like to purchase is equally as important as selecting a great real estate agent. Home inspection is an area where you may wind up spending thousands in the future if serious problems are overlooked during the pre-purchase process. Interview two or three home inspectors and don't base the selection on who's cheapest or fastest. Home inspection is not the place to cut corners.
Just knowing these pitfalls should help you avoid overspending and help you steer clear of problems. The home buying process can be wonderful, but it can also be taxing. Take your time and do things the right way. Do this and the process should go smoothly.