As important and easy as it is to be excited about your new property purchase, letting emotion get the better of you is one of the biggest mistakes that you can make. You should be happy about the fact that you are buying a new home, but you have to be careful as well. You’re going to be investing a lot of money into this property purchase, so you want it to match up as closely as possible with the ideas that you have in your head regarding the perfect choice of location, yard, house, amenities, etc.
Avoiding some of the following common mistakes will mean that you stand a better chance of landing the kind of property and abode that you’ve always dreamed of.
Take It Easy on That Offer
When you find a place that you truly love, it’s easy to get overly excited and either offer way too much to begin with, or fall into a pricey bidding war. Here is the problem with that. You may end up paying too much for the house and property. Then, when it’s time for you to sell, depending on the market and any improvements you may have made, you could end up losing money on the deal.
Secondly, you may not be able to get the loan for that pricey offer you made. If the bank doesn’t think the home is worth that kind of money, it will never approve a mortgage for such an excessive amount. Even if you can come up with the cash, if the bank doesn’t think that property is worth that kind of money – you may want to listen to them. They are not emotionally invested.
Be Selective But Don’t Wait Too Long
This is a double-edged sword. You never want to make a hasty decision, but neither do you want to drag your feet. You should always sleep on a decision of this magnitude and wait at least 24 hours or more before putting in an offer. Then again, if there is a lot of competition for this particular property, you don’t want to wait too long to make that offer, and risk losing it altogether.
There is a fine line here, and it needs to be walked very carefully. Your realtor may be able to give you some idea as to how in-demand this place is and whether or not they think it’s worth what the seller is asking. Should you wheel and deal? Should you simply make an offer? Should you play hardball? So many decisions.
And jumping in too soon can mean that you stop looking. Once you stop looking, you may pass up the perfect property without even knowing it. Before you make an offer, you must decide whether or not this is absolutely what you’ve always dreamed of, or is there may be something better down the line (or down the street).
Do Not Overlook the Obvious
Not everyone decides to have potential home purchases inspected. But it’s a good idea. Not only will it give you a better picture of how much work you’re going to have to do on this new home, but it can also be a determining factor in how much wiggle room you have with the seller. If there are obvious flaws in the home, do not overlook them thinking that you can fix them in the future. They may matter more than you know.
And do not overestimate your abilities as a do-it-yourselfer. A small problem can become a big issue in a heartbeat – particularly if you aren’t quite as handy as you thought you were. Fixing things wrong, or not fixing them at all, will affect the value of your home when it’s time for you to sell. There is likely something a little bit (or a lot) better out there if you will just take the time and the effort to look for it. Unless the entire point of your property search is to find the ideal fixer-upper, get something that’s already updated and in prime living condition.
And don’t make the mistake of falling in love with something that you absolutely cannot fit into your budget. It is essential that you set up a budget before you begin looking for a home. And, getting pre-approval for your mortgage is another smart move before you start your property search. Join forces with a reliable realtor that can assist you in finding a property that supplies you with everything you need and want. We can be that realtor. We know the area and how to help you score that perfect property!
