The Worst Home-Buying Mistakes to Avoid

by admin on February 2, 2012

Most people make the same home-buying mistakes, whether they are shopping for a lavish mansion or for a starter home. And today, with properties being sold within days of being listed, and even within hours, home-buyers are even more likely to make mistakes.

One common mistake people make is misunderstanding the role of the real estate agent. Real estate agents are, of course, friendly, and this a part of their job. While shopping for a home, buyers spend a lot of time with their real estate agent. However, it is important to understand that the agent is working for the sellers. If you are to buy a house in the United States, most US states require real estate agents to tell buyers this up front. Canadian home buyers are advised to pay attention to this because Quebec and several other provinces have not adopted disclosure requirements as of yet.

Another mistake is falling in love and thinking a house is just ideal. Even if this is what you think, do not share it with your agent or the seller because they can hold out for a high price. Wise home buyers are aware that there are many houses out there, and they are looking for the right house at a reasonable price. Even if you’ve found the house of your dreams, if you cannot afford to buy it, keep looking (Bankrate).

One way to find a fair deal is to compare the cost of homes in a particular area with the cost of the house you consider buying. Look at recently sold homes, the number of bathrooms and bedrooms they have, extra features and size, as well as the homes’ condition.

Picking the wrong community is one mistake that can cost you. Some of the areas are flat-out expensive, and you may want to look for a location that is more affordable. Of course, this does not mean that you should be looking for the cheapest locale. If the community is not good, you may find it difficult to sell the property, and you will be unhappy if you do not like the neighborhood. Read the local newspaper and ask around to find out how many resources the community offers, what the main issues are, and how it fares economically. Pay special attention to the schools in the area (that is, if you have children). Look for information on student/ teacher ratio, the percentage of children who go to college, test scores, etc. It pays to talk to students and parents as well (CNN Money).

Finally, one mistake many home buyers make is underestimating what they will be able to afford a month. It is not enough to factor in the home purchase price – there are fees, utilities, insurance, and taxes to consider. Apart from these, you may want to factor in the hidden costs, including homeowner’s insurance fees, escrow fees, appraisal fees, moving costs, and property taxes. Another factor is, of course, the cost of maintenance and repairs (US News).

Comments on this entry are closed.

Previous post:

Next post: