COMMON MISTAKES MADE BY NEW HOME BUYERS
By Fiora Aston
Are you thinking of buying a new house? If you’re staying up late, looking through the listings on Trulia and reading up on school districts chances are, you’ll be filling cardboard boxes sooner than later. Here are a few things to think about before buying a new home.
1 Most buyers jump into the process of buying without organizing their finances. They start looking at homes before knowing what price range in which they can qualify. The first step in purchasing a home is to get pre-approved for a loan, not pre-qualified, there is a difference between Pre-approval and Pre-qualification. Buyers who need to arrange financing will be competing with cash buyers, they have to be prepared. Once you are pre-approved for your loan and have established the purchase range, it will make your search much easier.
2 First time buyers usually put too much faith in online information about homes. Zillow and Trulia are not 100% reliable when establishing the real value of a home. In many cases these sites give the buyers a false sense of home values.
3 Most first time buyers find homes through sites such as Redfin, zillow and Trulia. Next to the information about the house on these sites, there are names and phone numbers of agents. These agents work with Redfin, they could be discount-agents or pay for the advertisement only and have no knowledge of the house or the area. They are not the listing agents and do not represent the house properly. You would need an agent who would fight for you and would get you the best deal possible. Always talk to friends and family for referrals for agents that you can trust. Purchasing a home is a big investment and a complicated one with lots of forms involved. And you would need to be protected.
4 Take the emotions out of the buying process. It is not easy to detach yourself from a house that you really love, you will get disappointed when you realize that you over paid for the house. In a lot of cases homes are staged beautifully and buyers get shocked for the way the home looks once the furniture is removed. Buyers who lose out in multiple offer situations do get discouraged and depressed.
5 Never skip a home inspection unless you are planning to tear the house down.
6 Drive through the areas that you are interested. Once you locate a house that you like, talk to the neighbors, find out about the community and the neighborhood.
7 Buyers don’t educate themselves well enough about the process of purchasing a home or the costs involved. Hire an agent, ask a lot of questions, and ask your agent to walk you through different stages of home purchase such as inspections, escrow procedures, title procedures and so on.