Buying a home could be the most important business transaction that you’ll ever make, and it’s an emotional process too. Many first-time home buyers can find themselves prone to making costly mistakes, including paying too much, and buying a less-than-ideal home. Below are some common buyer errors and how you can avoid them:
Paying too much
Many first-time home buyers wind up paying too much for their home — a costly mistake. Don’t just settle for the listing price of a home without looking properly into the property and surrounding neighborhood:
- Know the market. Be diligent in your research, and know what the local housing market is like. Don’t just think about the present either; what do you think the house will cost in ten years?.Consider factors that would lower the home’s value over time.
- Don’t just take the seller’s word for it — pay for a home inspection and see exactly what condition the house is in before you make your offer. You can avoid a nasty surprise (like a leaky roof) down the road this way.
Losing the home to another buyer
There is nothing more frustrating or discouraging than losing out on your dream home to another buyer. Follow some of the tips below to avoid this situation:
- Get your finances in order ahead of time by getting pre-approved and finding a good lender. Not only will this expedite the process, it will also show sellers that you’re serious about buying.
- Hire a good local realtor. He or she will be your greatest advocate in the home buying process, and help you navigate all the paperwork. You realtor will also properly examine the home’s title to make sure that it’s free of all encumbrances.
- When you find the home you really want, don’t hesitate. Act swiftly before anyone else gets the chance to buy the home out from under you.
Buying the wrong home
Whether you’re drawn into buying a home because of nice — but unnecessary and costly — extras, or are simply wanting to settle on a less-than-ideal home after a long search, buying the wrong home is one buyer error that you want to avoid at all costs. In order to avoid buying the wrong home for any reason, consider the following:
- Before you start house hunting, write out exactly what you want in your dream home. Include features that are must-haves, and features that you can live without.
- It can be very hard to do, but approach each potential home as objectively as possible. Remember, buying a home is an investment. Carefully weigh the pros and cons of each home that you look at.
- Before you make that offer, take a deep breath and identify exactly why you want this particular home. Ask yourself: “Is this the home I’ve always wanted?” “Am I compromising on anything right now?” And, “Does this home really feel right?” A little apprehension is understandable, but if you have a bad feeling before putting up an offer, you might want to reconsider your decision.
Remember, hiring a realtor is the best step you can take to avoid common buyer errors. If you are buying a home on Hawaii Island, get in touch with Lailan Bento today and see the difference a local realtor can make.