5 Common 1st Time Home Buyer Mistakes
1. They don't ask enough questions of their lender and end up missing out on the best deal.
The home buying process really starts with the pocket book. Not only do you need to know how much you can afford to buy now, but you need to look at what the closing costs are, as well as what the long term cost of the loan is. Most lending programs available today that include some sort of special deal are geared towards 1st time buyers. Tap in.
2. They don't act quickly enough to make a decision and someone else buys the house.
Analysis by paralysis. Study long, study wrong. This is the deal: It is wise to do your studying before you do your shopping. Once you ask a seller to neglect their dinner for you to walk in and "think about it" you should be beyond the "thinking about it" stage. Be ready to make a decision at that point. Don't think about it -- you already did that last week.
3. They don't find the right agent who's willing to help them through the homebuying process.
Agents are a dime a dozen. How do you know you have a good buyer's agent? My pro opinion is they give you some basics. They explain buyer rep to you because they have it memorized and it's important. They commit to you and ask you respectfully commit to them. They listen to what you want and need, nail down your budget and set realistic expectations. They answer your phone calls and emails with tact and speed. They get to work finding you what you want. You work together like a hand in a glove.
4. They don't do enough to make their offer look appealing to a seller.
In a buyer's market with a lot of media hype, it can be challenging for buyers to make offers that will get them what they want. They think no matter what the list price is, hey, it's a buyer's market, so low ball. This is not true. Even in a buyer's market, there is a pretty firm value the market places on each property. The value is set by willing buyers, willing sellers. What you are low balling today is what someone else is fighting for saying this is the one. So, know that you, as the buyer, are not the only factor here.
5. They don't think about resale before they buy. The average first-time buyer only stays in a home for four years.
This is where the pro steps in. You may not have any idea what contributes to resale -- all you know as a first timer is what you want. The pro really brings you a lot of value here when they tell you what you will be up against in the future when you try to resale. There is value assessed to every good and bad feature of the property. Appraisers and realtors understand what specifics give what value to what, so when they start talking resale, your ears should perk up. It's important.
Oh, and new construction is no exception. Who is selling the house doesn't matter, buyers, all that matters is there are hundreds of thousands of decisions to be made and you need a buyer rep by your side.
Source: Real Estate Checklists and Systems, www.realestatechecklists.com.
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