Not Hiring a Professional Real Estate Agent Can Cost You
Making the wrong move in any real estate market can lead to financial remorse or house buying misery. To prevent this agony, below are some common mistakes you should avoid as a first-time buyer.
Mistake #1: Working with the seller’s agent
Not getting professional help can leave you strapped for cash. Since we only buy homes about three times in our lifetime, the first time is the most challenging, Unfortunately, some buyers solicit the help of the seller’s agent, which could potentially be a recipe for disaster.
The buyer’s agent will be compensated through a commission split from the seller’s side. There’s no out of pocket expense to the first-time homebuyer when seeking professional help from a qualified agent.
Neglecting to work with a licensed Realtor exposes you to unscrupulous vulnerabilities, such as dealing with the listing agents whose principal objective is that of the sellers.
Mistake #2: Choosing the priciest home
Buying the most expensive home you qualify for is not a wise move, The lender doesn’t know how much you should spend on a house, just how much money the bank will lend you. Unfortunately, many buyers max out on how much they can spend, leaving them with nothing left for savings.
Mistake #3: Not educating yourself
Another problem is not taking their time to shop around. Although you have to act quickly to get a home in some areas, it doesn’t mean you should feel pressured into purchasing the first house you see.
Spend some time learning the markets and its values so that you can get a good deal. First-time buyers run into trouble when they don’t understand all the expenses involved when purchasing a home. There will be insurance, taxes, mortgage, utilities, maintenance and other unexpected incidentals.
Becoming well versed about the market and competition in your area ensures that you’re not kicked out of the bidding process and can help you secure the home that’s perfect for you.
Mistake #4: Jumping in without organizing your finances
Not having your financial ducks in a row can delay the purchasing process. You should first figure out what you can afford, then get pre-approved for a mortgage. Working with a professional lender with programs specifically catered to first-time buyers will make the process much smoother. When you have your financial portfolio in place, you’ll be surprised to learn of loan programs with a reduced down payment requirement.
Owning a home does come with a sense of accomplishment, but you don’t want to make costly mistakes by biting off more than you can chew. Planning a lavish vacation or purchasing furniture before settlement are two culprits that affect your credit score and jeopardize your chances of sealing the deal.
Mistake #5: Not visiting the house enough
I always tell my new buyers to remember that a house location is fixed and doesn’t change. So before making an offer, scout the neighborhood during different times because you don’t want to end up purchasing property next to a late night restaurant with a midnight trash service run. Go scope it out on a weekend night to see what’s going on and speak to neighbors. This is very important.
Mistake #6: Being indecisive
Many first-time buyers suffer from the fear of missing out. When shopping for a home and you find a home that you love and your gut tells you it’s the right house, don’t think that there’s something better out there, at least not for long, especially if you’ve looked at a good number of homes.
Although shopping around is a smart move, indecisiveness in a hot market means that you could potentially risk being locked out of the opportunity.
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