Waiting for the market to bottom out!
No one, and I mean no one, can predict exactly where the market is going to be in a few months, next year, or further down the road, so trying to time your home purchase with the bottom of the market is pretty much futile. Generally there is really no bad or good time to buy if you are buying for the right reasons. If you're financially and emotionally ready to be a homeowner, it's always a good time to buy. Just think: all the time you spend on figuring out when to purchase a home, you could have been building equity, getting tax deductions and enjoying the many other benefits of home ownership!
Buying a short sale, foreclosure or fixer-upper without doing your homework!
Some home buyers are so set on finding a bargain, and many times they overlook the fact that buying a home that needs repairs can be an expensive and drawn out endeavor. Before buying a fixer-upper, make sure you are able to handle the stress of the fix up process, that you understand what you are getting into, and always get estimates on any necessary repairs and renovations. In addition you must make sure they will pay for themselves in increased property value. While the short sale and foreclosure market is full of opportunities, it is imperative to understand the scope and ramifications of potential problems you may encounter before buying a distressed property. Hiring an experienced real estate agent that knows how to handle foreclosures and short sales is essential.
Not researching the neighborhood!
What good is owning your dream home, if you don't like the neighborhood where it's located? Before shopping for a home, shop for a community and a neighborhood. Make sure it's a good fit for your lifestyle. Figure out how long your work commute is going to be, how close you want to be to amenities like recreation, shopping and nightlife, and which school districts are the best fit for your kids. Even if you don't have children, living near good schools generally raises your property value. Always visit any neighborhood you are considering several times and at different times of the day to get a good feel for it. The two biggest incentives for finding a quality community: a great neighborhood will always increase your home's value, while a bad one will always drag it down; and a great neighborhood will increase the enjoyment you are getting out of your home, while a bad one will put a damper on it.
Thinking to short-term!
Foremost the house you purchase should be a place that feels like home to you and your family, but it's important to remember that it is also a very large investment, most likely the biggest one you'll ever make. When shopping for a home, it pays to think about it's potential resale value down the road. Search for homes you are able to afford located in sought-after neighborhoods, and look for features that future buyers will want. Buying a home that may need a little work in a great neighborhood and fixing it up over time is an almost sure way to generate resale value down the road.
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