Deciding to buy a home is a very exciting yet stressful time in a persons life, especially in the real estate market we have been experiencing on the Peninsula. I read an article in the news recently that was about five common mistakes people make in the home buying process. My hope is that this blog will educate home buyers and prevent them from making these same mistakes.
1. Expecting too much prior to pre-approval
Deciding that you are financially ready to buy a home is a exuberant feeling. As a result, many buyers start their home buying search checking online websites and attending open houses. Many homebuyers think they know what they can afford without getting pre-approved first. The smartest thing you can do is get pre-approved before attending open houses so you aware right off the bat what you can afford. In this market, a lender’s pre-approval is a must in order to be taken seriously by a seller.
2. Working with the wrong agent
There is more to a good agent than having a hand to hold while looking for a home. Working with an agent that is educated on the market, is willing to go above and beyond for you, and has a good reputation can make all the difference.
3. Being stubborn about financial policy
Some buyers refuse to provide the sellers proof that they have the funds for a down payment because they feel it is an insult that they have to prove themselves. This should never be the case. It can only help!
4. Foregoing inspections
Most sellers are having inspections done prior to going on the market in order for buyers to know up-front what imperfections the home has. Sellers hope this will bring them more non-contingent offers. For the few homes that don’t have inspections prior to going on the market, I suggest to my buyers to get a property inspection after they are in contract so they have a clear picture of any issues they may face. I suggest this even with clients who write non-contingent offers.
5. Falling in love too quickly
The hardest part about this sellers market is that buyers may fall in love with a house but be out bid. Its in a buyers best interest to not get too attached to any home even if its “perfect”. This can leave you heartbroken.