Mistakes To Avoid When Purchasing a Home

 Mistakes To Avoid When Purchasing a Home

1.  Looking at homes before being prequalified.

Many buyers want to jump into the car and start looking at homes before they know what they can afford.  What if buyers are looking for $250,000 homes and later discover they can only afford $150,000 homes?  There can be a substantial difference in the type of homes and where they are located at each price level.

2.  Limiting one's search

Many homes that are advertised on the inter net or in magazines may have already been sold.  Using a Realtor® will allow a buyer to find the most up to date listings. 

3.  Not knowing what costs are involved in buying a home

Early on in the buying process the buyer should be well aware of an estimate on closing costs and other upfront costs.  Home inspections along with termite inspections may have to be paid for at the time of service.  Appraisals may also have to be paid for upfront instead of at the close of escrow.   Knowing approximately how much money one has to bring to the closing table is very important.  Having a great lender and Realtor® will help a potential buyer realize whether or not they can afford the home from the beginning of the process.

4.  Not knowing what costs are associated with owning a home

Many buyers don't take into consideration all of the costs associated with owning a home.  Property taxes can increase over time, and many buyers don't think about the possibility of their total mortgage payment increasing.  Homeowner Association's fees can also increase each year.  If potential buyers have always rented they may not realize they have to have a homeowner's insurance policy on their new home.  Finally, maintenance costs are always something buyers must consider. 

5.  Not doing an inspection

Many buyers don't want to spend the money on a home inspection.  Even if it is an "As Is" property, doing a home inspection can be essential.  Here is an example of what a home inspector looks at when they adhere to Standards of Practiceby the ASHI, American Society of Home Inspectors.  There can be many issues that may not be visible, and if there is something majorly wrong a buyer may be able to get out of the contract. 

6.  Not following through on due diligence

Buyers should always check on schools, neighborhood, crime rates, and the surrounding areas during the inspection period.  The State of Arizona Department of Real Estate provides a great link to Home buyer's Bill of Rights.  Reading the Arizona Department of Real Estate Buyer Advisory can be of another resource. 

7.  Not Selecting the right Real Estate Agent

Choosing the right Realtor® can be imperative in your transaction.  Hire a professional Realtor® that will see the transaction through the whole entire process.  Realtors® will help you avoid making mistakes and serve as a vital resource.