Avoid 10 Common Mistakes When Buying a Home
Home buying can be a frustrating experience, but choosing a competent real estate agent to guide you through the process will likely save you time and money. Here are some tips to avoid costly mistakes.
- Get pre-approved BEFORE you start your home search. Pre-approval will give you a realistic price point when viewing potential homes and puts you in a better position to make a serious offer. Remember there is a difference between pre-approval and pre-qualification. Pre-approval means the lender has approved your loan and you are ready to purchase. Pre-qualification means the lender has given you an "approximate" amount based on the information you have given them. So those numbers are not verified and you will need to apply for a loan in order to make an accurate offer.
- If you are only pre-qualified, and not pre-approved, other offers may come before yours. In addition, you may be looking at homes that are over your price limit. Remember, this is just an estimation.
- Research the neighborhood. Learn about crime statistics, schools and amenities within your potential town.
- Look beyond the décor. Focus on the structure itself, square footage and layout. Look beyond the taste of the current homeowner, and remember you are buying the actual house.
- Never skip the inspection. Your home is likely the biggest investment you will ever make, a home inspection is necessary to ensure it is a sound structure or at the very least, make you aware of any defects.
- Give yourself an out. Make sure there are contingencies (such as financing or inspection) in the contract so you can back out of the deal and recoup your deposit. Many things might enter into your life that may make you change your mind. Be sure you have prepared for everything with the contingencies.
- Don’t buy the most expensive house on the block. The lower home values around your property will negatively affect your property’s value. This sounds silly. You love the neighborhood and love the house, but remember, that the other homes in the neighborhood are not worth what your house is. This may impact your price when you are ready to sell.
- Keep resale value in mind. It may be difficult to envision selling a home that you have yet to live in, but remember to consider long-term property value, location and overall mass appeal, when viewing a potential home. The important advice here is to stay as neutral as possible in your updates. If you look back and remember the 60's and 70's, those were some tough colors to sell. Creams and neutral colors will always fit the buyer's furniture and help the property sell.
- Visit the property at several times during the day and evening hours. You may think the property is on a nice quiet street, only to find out that it's actually a main thru-way that commuters use every morning and evening. What about surroundings? Are there trains? Are there lights from businesses that are somewhat nearby? Know for sure because these thing may impact your desire to live in that location.
- If you have a contingency on your offer that you need to sell before you can buy, that may make your offer less competitive to offers that do not have contingencies. Sellers typically want the deal done so they move on to their new home.
Call Connie Webb, your Cheyenne CENTURY 21® Real Estate Expert t (307) 630-7637. With 20 years of experience, Connie can help you buy or sell your property. She has been through the Real Estate Process in Cheyenne many times and is the perfect person for knowledgeable sales and to guide you through your home buying experience.
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