Today I'd like to talk a little about common mistakes made by first-time (and sometimes second or third-time) buyers that could easily be avoided. Below is a list taken from a really cool web site realestatechecklists.com called Common First-Time Home Buyer Mistakes.
- They don't ask enough questions of their lender and end up missing out on the best deal.
- They don't act quickly enough to make a decision and someone else buys the house.
- They don't find the right agent who's willing to help them through the homebuying process.
- They don't do enough to make their offer look appealing to the seller.
- They don't think about the resale before they buy. The average first-time buyer only stays in a home for four years.
This is a pretty good list, but I'd like to expand on it a little bit and explain further why these things can be bad and what you can do to avoid them. Also, as I mentioned above, I don't think this list is exclusive to first-time buyers. There are plenty of second or third-time buyers who can make the same mistakes.
Starting with number one, not asking enough questions of their lender. Be sure that you understand everything your lender is telling you. There is no shame in asking them to stop and go back to explain something. Remember that these people do this every day and sometimes can forget that you may not know what a "buydown" is or whether you should go with "fixed" or "adjustable". Just because they forget, doesn't mean they don't want you to understand. The lenders that I work with really try to go the extra mile to ensure my clients know everything about their loan. They work closely with them so that they feel comfortable and confident with the whole loan process.
Number two covers not acting quickly enough. I know that everywhere you look right now it says we are in a Buyers' Market, meaning there are plenty of homes for buyers to choose. While it is true to an extent, that doesn't mean this can't happen to you. If you find a home that you like, someone else will like it too and if you can't make a decision, you could lose it. The way to avoid this is to be sure you are completely ready before even stepping into your first home. There isn't any reason you should look unless you know you can make a decision then and there. If you do this, then you can shop with confidence knowing you can buy whatever you are looking at.
Number three talks about finding the right agent. This is a very important step in the process. You need to find someone who is not only willing to help, but able as well. Different agents have different skills, abilities and even schedules. You need to be sure you and your agent are on the same page with everything like when to view homes, how to contact you, exactly what you are looking for, etc. When you find an agent that you mesh with, it will make the whole process much smoother and hopefully much more fun! The way to do this is to talk to a few different agents, but then choose one to work with and let the others know you are working with someone else. Some people think if they have more agents looking, they have a better chance at finding something, but it isn't true. Just like any relationship, this one is built on trust, loyalty and respect. If you commit to one agent, they will commit to you and work hard for you until you reach your goal.
Number four talks about your offer. Everybody wants a deal! This is unfortunately one of the most common mistakes buyers can make. They want to try and "low-ball" a seller with there offer. A lot of times it can upset the seller and make them unwilling to work with you. You have to remember that this needs to be a win/win for everyone in order to make it work. You are trying to get a good deal and the seller is trying to sell at a fair price. You have to be realistic with your offer. A lot of times, the listing agent has already gotten them to come down on their listing price to make it even more attractive to more people, so if you are unrealistic with your offer, your chances of getting an acceptance could be very slim.
Finally number five deals with thinking about the resale. This is more important for first-timers than anyone else. If you are buying your second or third home, you may be planning on staying forever, but even then plans change sometimes. So you have to look at resale on any property you are buying. You need to work with your agent to find something that will sell again in a few years if you need to.
I hope this blog will help you or someone you know avoid making these all too common mistakes. If you have any questions or comments, please feel free to contact me anytime.
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