Listen up my first timers! Now that I have informed you of these “5″ mistakes, let’s try to avoid them shall we . According to our beloved National Association of Realtors, you first timers made up almost 40% of all purchases in 2010! This is why I have gone to such lengths to educate and advocate for my buyer clients…because so many of you are at your first rodeo. Due to your general inexperience and lack of knowledge of, not just the process, but the HOW and WHY to buy, I work hard to ensure that you don’t get burned. Without further adieu then:
- Whoa, It Costs How Much To Own a Home?
The time and costs associated with the upkeep of a home you own is not comparable, at all, to what you were used to when you rented. You must calculate repairs and maintenance, which will be directly attributed to the age, size, and construction of the home; as well as the size and landscaping classification of the lot that it sits on. There is also HOA dues, furnishings and applicances, and a bevy of “things” you weren’t expecting! All of this must be taken into consideration, not just the mortgage, taxes, and insurance.
- This Place Looks Great, Let’s Save That $300 For An Inspection!
I get this…a lot! Not only will the inspection often dictate the direction of the on going negotiations of the purchase, but will directly affect the calculation related to number 1…the cost of ownership. Please do not overlook the importance of a good inspection!
- We Only Want To Look At Short Sales and Foreclosures Because Our Mothers Said They Were The Best Deals.
I typically recommend to my clients that unless they are willing to stomach the time commitment (4 months!) and high failure rate (90%!), that they cast their nets beyond the short sales and foreclosures…way beyond! Also, there is so much “distressed” inventory that all of the homes in a given market have to compete at the lower price points.
- Have We Thought Out All That Goes Into Buying?…Yes, We Talked About It For 2 Hours Before We Went To Bed Last Night!
Is your employment stable? Have you been pre-approved? Do you have a Realtor on standby ? Have you decided where it is that you want to live for 5-7 years? If you have not ruminated on each and every one of these questions…YOU ARE NOT READY!
- Resale?…Oh No, We Plan On Living Here For The Rest Of Our Lives and Providing A Place For Family Christmas and Thanksgiving.
Was your selection based on emotion or logic? Emotional attachment is a hard monkey to throw and it’s best not to let it up on your back in the first place. Back in the good old days people used to have the luxury and expectancy of stability. I don’t have to tell you that this is not the paradigm we live in today. At any time life will turn south when you’ve navigated north and you are up the proverbial creek. This is when you reap the benefits of deciding on the right house and location.
So, in summary, if you are a first timer it is more imperative than ever to get your team together earlier in the home buying process and start making the right decisions! Put simply, don’t put more time into the next set of golf clubs than you do into your home purchase!