Free Report - Buyer Mistakes in Bismarck, ND
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Be prepared. Proper preparation when buying a home is vital to the purchasing process. If you are not prepared, then you will run into many problems in the future. The home-purchasing process should be easy, but forgetting these steps can quickly turn the process into a nightmare. There are seven very common mistakes that buyers make, and this report will show you how to avoid those mistakes. If you have any questions along the way, don’t hesitate to contact any of our friendly agents. We are happy to help you with anything you may need.
Gain financial knowledge
Be an informed consumer. A little preparation goes a long way. Be a smart consumer. Learn the financing basics before you start shopping, explore your options, ask questions, and know how to shop for a home loan that’s right for you.
Plus, it’s always a good idea to get pre-approved by a lending institution. This simple step takes very little time and lets you know the price range that fits your lifestyle.This will help you avoid wasting time on homes you can’t afford.
1. Pleading financial ignorance
A little preparation goes a long way. Be a smart consumer. Learn financing basics before you start shopping. Explore your options. Ask questions. Know how to shop for a home loan that’s right for you.
And it’s always a good idea to get pre-approved by a lending institution. This simple step takes very little time and lets you know the price range that fits your lifestyle.
2. Buying on impulse
Take your time when buying a house. One important thing that you never want to do when you are buying a home is finding the first home available, and buying it on impulse. It is important to know every little detail about the home and the neighborhood before you buy your home. You definitely don’t want to close a deal on a house that you later realize you don’t want. Find the house that is the perfect fit for you and your budget, and buy that home. It’s exciting to think about owning a house, but don’t get in over your head. Take a step back from your impulsion, and make a pros and cons list of each house you are interested in. Whichever house works out the best is the house that you should buy. A home isn’t like a clothing item -- you can’t simply return it if you don’t like it, so be very careful when you are choosing
3. Running up high debt
High debt can mess up the buying process. Listen, we know that you want a new car AND a new house, but in order to buy a house, you’re going to have to wait on the car. Making major purchases is a common mistake that buyers do right before they are ready to buy their home. Don’t put too much on your plate. Before you buy something substantial, ask yourself some questions: do I need this right now? Is this going to affect my future? Will this keep me from buying a home? If you answer “yes” to any of those questions, odds are the purchase shouldn’t be made. Once you buy your home, you’re set to go! Until then, try to refrain from making great purchases. It’s also important to remember that financial institutions evaluate your gross income, and how much money you have to spend. You monthly total house costs shouldn’t go past 28% of your gross monthly income.
4. Taking too much time
Make your decisions quickly. Sometimes homes sell quickly, so be ready to make fast decisions (this is why you prepare before you start your search). This doesn’t mean you should buy the first house you see, but it is important to decide which home you want to buy in a timely manner. Housing markets are rapid, so it’s important to keep up with it. Be accessible to change terms and have easy access to your agent. Instant communication can mean the difference in purchasing the property of your choice.
5. Submitting a weak offer
Make a strong offer. Sellers want a fair price, and they want to know a potential buyer is serious. Submit a strong offer and include a substantial earnest money deposit. Sometimes offers are accepted based on the amount of the deposit.
6. Being too picky
Don’t be too picky with your purchase. Fewer specifications can lead to a better home-purchasing experience.
7. Neglecting the homework
Don’t neglect your homework. Skipping a few easy steps in the buying process can be disastrous in the long run. Make sure you know what you’re getting – before you buy.
• Hire a professional building inspector or appraiser. Make sure the house is in satisfactory condition.
• Check zoning regulations and covenants. Good residential neighborhoods are zoned to keep out commercial and industrial users. Read any restrictive covenants; make sure they fit your lifestyle.
• Request an updated property survey. Be sure it clearly marks boundaries. Check for problems.
• Make sure you know what stays or goes.
• Your contract should be very specific about which items (appliances, etc) are included in the sale.
• Get agreements in writing. Make certain verbal agreements are written into the final contract to avoid any stressful and expensive issues later.