6 Biggest Mistakes First-Time Homebuyers Are Making today
1) Looking at too many homes, and focusing on too large an area:
Define your boundaries based on the max budget (including closing costs*), the size of home you need, and the location. If you are unsure where you can get best value, then talk to a local realtor to guide you.
2) Relying too much on the opinions of friends, family:
After many showings, you think you found the one fit, so you bring your friends and family to get their opinion. They will likely nit-pick, because they feel they are being brought in to save you from making a mistake and also they haven’t been to the other 30 places that didn’t make the cut, so really have no point of comparison that you have.
3) Putting too much trust in the listing agent:
You think you can get a better deal or a leg up against the competition by working directly with the listing agent - wrong. The listing agent is working for the Seller. Especially if there is multiple interest, their job is to be fair to all parties and to get the best price and terms for their Seller.
4) Waiting too long to make an offer:
Theres a new listing, it looks perfect on paper, and the price is right. But you don’t either want to seem too desperate, or you think you can get a better price if you wait. This property won’t last, cause generally, if the price is right and it shows well, there is another buyer who has been looking for long enough to know that this is the one.
5) Paying too much attention to online home evaluations:
Internet is a great tool to learn about anything from how to play a guitar to watching videos of cute animal doing funny things. However when it comes to defining your real estate purchase there is an unlimited amount of conflicting information. Make sure you are talking to a local realtor to get the real time information on what matters most to you.
6) Not talking to a lender first:
Remember the time you went to the grocery store without any money, walked all 12 isles, filling up the cart and then abandoned it at the cash register - no, you don’t - because that would be a complete waste of your time. So, is shopping for a home without having a lender pre approval. Don’t assume you will have the funds when needed, especially if you have to act quickly.
7) Considering other big purchases while home shopping (eg. cars):
Once you get your pre-approval please do not change your jobs, or make any large purchases. Your approval is only conditional and if you change your debt ratios, you could jeopardize your financing terms.
Please feel free to share any comments shali@shalitark.com
*email me for a cost sheet of closing costs