The real estate market is currently very competitive and experts don’t expect that to slow down anytime soon. According to a study done by real-estate brokerage Redfin, homeowners aren’t moving with an average homeowner spending 13.2 years in their house. This is one reason why the buyer demand is still very high meaning hunting for a home can be easier said than done.
Well, you need a level head as you shop around for your dream house. An informed decision could be the difference between purchasing your dream home and making an expensive mistake. Talking of mistakes, we have compiled some of the common pitfalls you ought to avoid when hunting for a home.
Failure To Identify Your Needs
As you hunt for your ideal home, you must be visionary and factor in your future plans. It would be best if you also looked for a home that will fulfill your needs and personal preferences. For instance, it would not be a good idea to move into a condo if you don’t like sharing walls with your neighbors. You shouldn’t also be moving into a one-bedroomed house if you plan to have a big family shortly.
Taking Too Long To Make An Offer
While it is not good to close a deal too quickly, that doesn’t mean you should drag your feet. Someone else might beat you to your dream home because you took too long to respond. If you find a home you love, close the deal as soon as possible to prevent yourself from going back to the drawing board.
Ignoring Significant Flaws
A few physical imperfections such as a hideous wallpaper shouldn’t make you shy off from buying a house you can afford. Besides, sometimes sellers use cosmetic upgrades to a house to hike the prices. However, if the flaws are too significant to change, it would be best to move on to another house. Please don’t buy a home and later realize the fixer-upper will cost you more than the initial price of the house.
Not Being Realistic With What You Can Afford
It would be a shame to fall in love with a place you cannot afford. We suggest letting your realtor know upfront the upper limit of your budget. With this knowledge in mind, they will avoid showing you pricier options. We suggest starting at the lower end of your price range in case you come across a cheaper house you like.
Assuming The Bank Will Approve Your Loan
If you have an unstable income or a poor credit score, the bank might not be willing to lend you money to top up your mortgage. Subsequently, what you think you can afford and what the bank might lend you might also not add up. The bank could also agree to lend you money, but on terms you find unacceptable, making it hard to purchase your dream home. It would be best to ascertain you are pre-approved for a loan before you close any deal or sign a contract. Remember that if you do anything to alter your credit score, the bank might refuse to lend you the money.
An alternative would be to go for a mortgage from other lenders. The key is to find a mortgage product from a reputable lender in your area. You can also find a trusted broker that can assist in picking a tailored solution from more choices or rather mortgage products. For instance, you can search for top mortgage lenders in Portland, Oregon if you are in the region. Ensure you do your due diligence to pick a product that suits you best.
Failure To Inspect The House
Once the seller accepts your offer, you shouldn’t close the deal until you have done a thorough inspection. It is always smart to get a feel of the house’s physical condition to ascertain that you are not buying a money pit. You also wouldn’t want to move in and realize you need to perform numerous costly renovations.
Making A Hasty Decision
If you are too quick to close a deal, you might find another house that is a better fit for you. To avoid regretting your decision, you should shop around as many houses as possible before making the final verdict. Compare the houses in terms of price, size, and proximity to places you frequently visit until you find the most suitable choice.
Bidding Too High A Price
A common mistake you could make when hunting for a home is bidding a higher price than the selling price. Offering up too much money could result in a bidding war, pushing the final selling price higher than the home’s initial value. To nip this problem in the bud, ensure you research the possible selling prices for houses in the area and consult with your real estate agent.
Not Working With A Real Estate Agent
A real estate agent is a huge asset, especially if you are serious about house hunting because they will act in your best interests. However, be cautious when dealing with the seller’s agent because they might not place you in an ideal bargaining position. Research reveals that 88% of homeowners bought their homes using a real estate agent.
Being Too Desperate To Close A Deal
It is easy to get frustrated when all the sellers outbid you on the houses you love. You could also start to feel desperate after spending hours searching for the house of your dreams. Please don’t be tempted to fall into the trap of desperation. We suggest you wait a little longer until you find a house that meets your needs.
Overlooking Your Neighborhood
Remember that you will be a part of the neighborhood as soon as you move into your new home. Therefore, you must research the prospects of the surrounding areas. Ensure you ask the realtor about zoning laws, whether there is a likelihood of upcoming buildings in undeveloped land, and the possible development plans in the near future. You should also ensure the neighborhood feels safe to avoid unexpected surprises during the day and night.
One key aspect as you hunt for that dream home is to avoid costly mistakes. Yes, be wary of common mistakes to avoid losing cash or ending up frustrated. Keep in mind that you might have to compromise along the way until you find a home that is close to what you had in mind when you first started house hunting. Don’t let yourself get carried away by the heightened emotions you are bound to experience.