Common mistakes first time home buyers make
Too-common mistakes first-timers make.
1. Not knowing how much house you can afford.
The first things buyers should do is talk to a qualified lender and get pre-approved. Without first figuring out how much house you can afford, you risk falling in love with one you can't.
2. Assuming foreclosures are great deals.
Just because the previous owner owed $500,000 on a house before the bank took it over doesn't mean it's worth that much now. Values have decreased. Most homes owned by lenders or banks have been sitting vacant for months and may have been vandalized. The common issue that I have experience is stolen copper pipes through the entire house.
3. Failing to find a good buyer's agent.
Getting a mortgage is tough these days. So buyers should rely heavily on knowledgeable agents to help them get their finances in order. Buyer's agents have a fiduciary responsibility to the buyer exclusively - and should be looking out for their best interests.
4. Assuming your first offer will get accepted.
As home prices get even more affordable, competition is bound to heat up. Multiple offers becoming more common these days. You can't assume you'll walk in there, make the offer and get it. Try not to get discouraged if you lose out on the first - or second - house you make an offer on.
5. Understanding the costs of owning a home.
Whether it's a rusty pipe or a leaky roof, things go wrong and need to be fixed. Many home buyers don't anticipate the additional costs for repair and maintenance. Consider the age of your new home and how well it's been treated by the previous owners. Be prepared to set aside a small percentage (1% at most) of the home's purchase price annually for repairs and upkeep.
6. Do the inspection.
Hire a professional inspector. The seller isn't likely to tell you there's mold in the basement or the walls are poorly insulated. You can find a list of inspectors in the phone book or on line. Make sure they are licensed.
On Your Team.
Irena Popilevsky
Appleseed Homes
(917) 579-4455
Comments(0)