Every homeowner had to buy his or her first home at some point or another. Chances are they didn’t know a lot before they bought it, but learned a lot in the process. Some of them may even admit that they learned real estate lessons the hard way. If you’re about to buy your first home, don’t make these rookie mistakes.
1. Not Building a Good Team
Almost every list of top real estate mistakes includes the caveat that every real estate buyer needs to remember. You need to lean on people who know more than you if you want to succeed in a good real estate purchase. Find people who are experienced and who can send you in the right direction. Real estate agents, lenders and lawyers can make up a team that will fill in for you where you lack. Don’t choose just anyone to fill these positions, though. Bad advice or inexperienced advice could be worse than none at all.
2. Putting Too Much Down
Traditional homebuyers think that the more they put down, the better their situation will be overall. But real estate experts recommend putting down less rather than more. You need to have enough cash flow on hand to handle unexpected challenges with your house. Without enough cash flow, you may not be able to handle necessary home repairs.
3. Assuming Foreclosures are a Great Deal
Especially with auctions, buyers can often feel they are in for a screaming deal only to find they’ve gotten ahead of themselves with the bidding. The final price of the auction still needs to fit your budget. Likewise, you need to be aware of the costs you could be incurring on top of the base price of the bid. You may have to pay taxes right away and you do not get the warranties that come with buying a regular house, so you have to be financially prepared for the house to need repairs right away.
4. Revealing Your Hand
If you start screaming and planning the minute you walk into a new house, the seller knows he has you where he wants you. Even if you’re excited about a property, maintain some old fashioned poker face so that you can have room for negotiation.
5. Skipping the Inspection
Don’t sign anything before you hire a professional inspector. You can. Legally, a seller can sell a house that has not had an inspection and a buyer can legally buy it. But that doesn’t mean that you should. Most mortgage lenders won’t give out loans for a buyer to buy a house without an inspection. Beyond the basic inspection your lender requires, you should consider also getting extra inspections even if you have to pay more. Have your inspector check for roofing issues, sewage pipe and wet basement inspections too.
Don’t make the mistake that many beginning real estate buyers make. It’s not the same as walking into a store and choosing the shirt you like the best. Real estate has many ins and outs and it will pay off to get educated and get help especially for your first purchase.
Sheila Madison used agentharvest.com to find an experienced real estate agent to sell her home. Next time you’re in the market for an agent check out the website.
