Silly Home Buying Mistakes

Posted on Jan 17 2014 - 10:06am by Saurabh Tyagi

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There are numerous mistakes one tends to make while making the purchase or investment of a lifetime. Sometimes it so happens that irrespective of the warnings and advice of the property agents or experienced home buyers, mistakes are committed.

While it is better to learn from your own mistakes, here it is always advisable to learn from that of others. Home buying is not a very simple activity considering there are more people involved than just the seller and the buyer, more formalities to meet and umpteen small and big challenges to face.

Here is the list of some of the biggest homes buying mistakes.

Buying the big items before the close

Once you have found your home and are part of the contract, it is essential to control your urge to make big purchases. While you are in escrow, all those big luxuries can wait, especially those that can be bought using your credit card. This may have adverse impacts on your ability to get a loan.

You are not the only buyer

For some strange reason you tend to believe that the house you liked is disliked by others and you are the one who is going to bag the deal. It is not a good idea to make the seller wait and play games, its time to wake up. The real estate market is very competitive in itself; therefore understanding the market, how negotiations work and other intricacies with the help of your agent is fruitful.

Ignoring the paperwork

Buying a home requires way too many documents. The buyer needs to have certain requisites for the formalities to take place in an orderly manner. Getting all the documents sorted when you start the house hunt process in consultation with the realtor is important. Keep them organized in a folder so that you have everything you need in one place.

Buying at the approval level

There are two distinct levels that need to be taken care of while purchasing a home. One is the approval level wherein if you buy your house at this one, you are bound to become house poor. The other is the comfort level, which we tend to conveniently ignore. At the comfort level, your mortgage payments, recreational expenses and other essential ones are comfortably carried out. If you are already heading to becoming house poor then reaching out for refinancing options can be helpful.

Not paying much heed to the contract

Getting into a contract means you are expected to know all the different sections and clauses of the contract. Though the real estate agent may explain the important ones to you, it is extremely important that you read through the entire document on your own before signing. Ask questions to your agent or seller if you do not understand certain things. If you have any inputs, then reworking the contract is a must. However never blindly sign the contract irrespective of how much faith you have in the agent or the seller.

Emotional expenditure

Sometimes it so happens that you tend to fall in love with the house in the first glance. These are those times where you are tempted to make an emotional decision. This may have adverse impacts in the future especially with respect to your finances. Reach out to an agent who will be able to successfully cite the pros and cons of the property. Leave the negotiations for him to handle as they know their job the best.

Ignore the wants over needs

Practical choices are often subdued by the luxury wants. This is amongst the other biggest home buying mistakes especially for first time home buyers since they don’t really know what they need and want. An experienced home buyer knows better and can prioritize his needs and wants in a better fashion. This mistake can be avoided by making a list of all your needs and not wants. This will help you search for a home that fulfills most of the needs on your list.

Overlooking the inspection process

Home inspection is a very important step in the entire process of buying a home. Many times you are so excited to have a found a home, you rush into signing the contract that you forget the importance of an inspection. A home inspection by the appropriate official will help bring to light the loopholes and drawbacks of the property. Such an inspection often leads to further price negotiations.

The rate at which people are buying and selling homes has increased tremendously when compared to the yester years. This is primarily because of the increase in the availability of loans and the presence of interested and keen real estate agents. Reach out to the right professionals to enable a smooth home buying journey.

About the Author
Saurabh Tyagi

Delhi born Saurabh Tyagi loves writing, and frequently puts pen to paper every now and then for topics such as new projects, serviced apartments for sale and commercial real estate property. Currently he writes on behalf of a leading real estate site 99acres.com.