7 Common Mistakes Seasoned Home Buyers Make
Buying a home is not so easy, with too many details to be kept in mind for your entire family’s comfort. You do end up making some errors, no matter how alert you were before finalizing the property.
One of the best ways to avoid taking a wrong step while purchasing real estate is to learn from the mistakes of others. Understand where they faltered or took a bad decision and try to avoid the same mistakes while buying a home for yourself. Hire a real estate agent who has the best market knowledge and can work out a great deal for you. Trust him and move forward swiftly.
But there are a few lousy mistakes which even seasoned buyers make. Here are a few of them to let you put your guard up against them right from the start:
1. Compromising One For The Other:
One of the most common mistakes repeat home buyers make is overcompensating for a mistake they made with their last purchase.
For instance, you bought a house in a great location but have crammed up space and unable to manage your growing family there. The next time you bought a house big enough to cater to everyone’s needs, but ignored the location factor and ended up in a location far away from your work and friends.
Focusing too much in one area can lead to problems in the other, leading to mistakes. A big house at a great location is what you would need and should learn to balance out the two, such that none of the two factors are compromised, which leads to regrets later.
2. Overlooking Traffic Patterns:
You zeroed down on a house of your choice after much deliberation, but failed to account for the growing population trends in and around that location.
You need to consider the expected future growth of the area and if the city is doing something to help manage the increased traffic on the roads.
For instance in Raleigh, North Carolina, there’s a net growth of more than 70 people per day. This rapid growth is leading to a large increase in traffic, and the city is taking adequate measures to deal with it. Buying a home within 30 minutes from work should not take you an hour for the same route, only because of the increased traffic and growth.
3. No Proper Strategy in Place:
Another common mistake of most home buyers is trying to find a house before they are even ready. Without a proper plan in place to conduct both a sale and a purchase, buyers miss out on an important detail that their purchasing power is reliant on the sale of their current house.
It’s important to first figure out what to do with your existing property, where you are residing. If you are going to spend all in cash, things become easier.
However, if you need to sell your house to make room for funds, the seller of your new home will not go ahead, if you don’t have a buyer for your current property. The seller will be highly uncertain of your ability to find the correct buyer and sell your current house, within the specified timeline.
If you face such a trouble, you can always look for a housing society of a reputed builder. They are far more flexible when it comes to accepting contingency contracts.
Have a proper plan in place to first sell off your current property and then close the sale for your new home, within the same duration, giving you just the right amount of time to move in to the new house.
4. Getting Edgy:
Home buyers often get edgy and impatient when it comes to buying a new house. In a seller’s market, where every good home is receiving multiple offers, home buyers will allow their emotions to play a role and start making offers on homes, either outside their budget or missing out important criteria.
Just because they missed one or two good properties, home buyers may resort to this, just to feel better. Well, this will lead you nowhere but straight towards committing some mistake. Have patience, as the right home will come your way, it might take a little longer but it eventually will.
5. Careless About The Future of The Neighborhood:
You buy a house to stay in one for the coming future, not just for a year or two. Looking only at the present conditions and ignoring the future prospects of the neighborhood can land you in serious trouble.
Is there a power plant going in next door? Or a major road about to come through? Many uncontrollable factors may affect your property value, so it is important to account for them before deciding on a house.
A beautiful house attached with a backyard that opens to the woods behind, may seem very attractive, but it would benefit you to know who owns all that land and woods right behind your house. This will do nothing but help mitigate any risks associated in the future.
6. Making Assumptions About The Market:
Real estate is a cyclical market and has its ups and downs. There are good times to buy and sell. It’s important to recognize the trends and not just blindly assume the market scenario.
The market may be at a completely different pedestal when you bought a house as compared to the present day.
Just like in 2009, right after the real estate market crashed and people had trouble selling their houses, to the current day in 2018, when a seller can have multiple good offers for a house that he put on sale 3 days ago.
The 18-year old real estate cycle is real, and you may find a complete shift in the scenario next time you go house hunting.
7. Buying Homes in Different States:
Every state has a different set of rules and regulations when it comes to buying a house. Home buyers often look at buying homes across the country as similar as making a local purchase.
You are going to have a completely different experience buying a home for yourself in California or New York, as compared to North Carolina. Not only do the real estate laws differ from state to state but also the involvement of different parties such as title companies or real estate attorneys.
Even dates have can have a different parlance between two states. So it’s crucial to not just assume but gather facts before making a home purchase as far as different states are concerned.