Buying a home is a big decision for most people and, therefore, usually requires much planning, consultations, and deliberations. Nowadays, there is a lot of information also available online on many real estate websites, that can give you a pretty good idea regarding homes for sale in your desired areas. Although if you are doing it for the first time, there are some mistakes that you may make, which may then lead to you paying much more than you should or even losing your dream house to another buyer due to a technicality.
Below is the list of Top Five Things that you should Never Ever do when buying a home :
1. Ditch Professional Help
You can use online resources and your research to help you shortlist some options, but while entering the final round of purchase, not involving a real estate agent can turn out to be disastrous for you. Professionals are the experts of a field, and they know every nook and cranny that can save you good time and money. Also, when you have no or less experience yourself, an agent can be beneficial in handling all the technical paperwork and can offer you excellent guidance. Like a comparison between different mortgage lenders, contacts for competent home inspectors in your area, and actual on-ground situation of the local real estate market.
2. Move Out Before Buying Another House
You may be moving to an area where, as per your understanding, houses are easy to find, or your friend just found a home for sale a few days ago and has now moved in. But that doesn’t necessarily mean that you will face the same convenience or get the right house within your estimated time. There can be an obstacle anywhere from anyone. So never move out of your current accommodation before your contract for a new home is finalized. Otherwise, you will be stuck in limbo.
3. Make Big Purchases on Credit Card
When you are in the process of buying a home, you need to get your mortgage approved on that, which can get troublesome if you have maxed out credit cards or a low credit score. Therefore, until everything gets finalized, do not make any big purchases like cars or take on any other loans; otherwise, you may risk being getting thrown out of the ring on a technicality.
4. Forget to Account for Closing Costs
Always remember that in addition to the value of the house, the buyer also has to pay the closing costs, unless differently agreed upon with the seller. This is not a small amount (can be from 2 to 7 percent of the total value of the home), and most first-timers tend to forget this part easily.
5. Make a ridiculously low-ball offer
If you like the house and want to start the negotiation on the price, never make an unreasonably low first offer unless you don’t want to buy the property, in which case, you should just walk away. Making an incredibly low offer makes you appear as a non-serious buyer in front of everyone present and affects your credibility. Doing this may also irritate the seller to the point of no return and resulting in you losing a good option.