5 Mistakes You Don’t Want to Make When Buying a Home in 2017
As the new year approaches you may be thinking about a few goals. For many, buying a home is a major objective. Whether you’re looking to build equity, tired of renting or looking to plant your roots, buying a home is a milestone in anyone’s life. However, before you jump into home ownership there are a few things you should be aware of. So if you are looking to buy in the new year here are 5 mistakes you don’t want to make when buying a home in 2017.
Not working with an Experienced Agent to Represent you
Bottom line is, working with an experienced and reputable Realtor® will save you both time and money. An agent that has the know how to close deals will help navigate the market and negotiate contracts effectively. A reputable agent will always look out for your best interest.
Judging a home too quickly.
This holds true for both internet searches and property tours. It may or may not look like “the one” at first, but a great Realtor® knows every block, every camera trick and how to spot the best deal. If your Realtor® makes a suggestion to view a property, take them up on it!
Not thinking about resale.
One of the first questions you should ask your Realtor® when making an offer is, “How easy do you think this property will sell 5 years from now?” Remember that an ultra-modern bachelor pad loft might seem perfect at the time, but when the time comes to sell it, your audience might be very limited.
Shopping without knowledge of a pre-approval
Here’s an all too common scenario: You’ve been searching online for the past 3 months, haven’t partnered with a Realtor® and haven’t even begun to find a lender to get pre-approved. Suddenly, you find the perfect property, grab the first available agent and write an offer. What happens next shouldn’t surprise anyone. You lose out.
- The other buyer had a better Agent who understood what it takes to negotiate a successful contract
- The other buyer had a solid pre-approval in their hand, not only with a reputable lender, but a lender who has traction in the local market. This is a great leverage for the Buyer because it reduces the risk for the Seller.
- You may have a credit issue that you weren’t aware of until you are ready to write the contract. Now instead of negotiating, you waste your time on fixing your credit.
Making an uneducated offer
Many people make the mistake of making an offer based on a number 10% less than the asking price. Each deal is unique and this is where you’ll rely on your Agent the most. You will either overpay or you will lose out if it’s a hot property. Ask your agent to put together a CMA (Competitive Market Analysis). This is the same approach that a certified appraiser takes helping you make a better offer!