Buying a home should be simple, right? See a home, make an offer, get a loan and move in. Is it crazy to imagine there is more to it than that?
Buying a home is more than a financial transaction. In this competitive home buying market, there is a complex web of invisible forces that can help, or hurt, the average home buyer.
Here are the 8 worst mistakes a homebuyer can make.
1. Not Doing Your Financial Homework
Many homebuyers start shopping for a home the moment they decide to buy. This is a Big Mistake! If you don’t do your financial homework you risk losing the home you want or buying a lessor home than you deserve.
Get a solid pre-qualification letter from a well known and trusted mortgage professional. The home seller needs proof that you can close escrow and close on time.
Meet with your tax professionals. The mortgage tax deduction is a significant benefit to buying a home for most home buyers. Understand how thie should affect your budget.
Meet with your financial advisors. A home is often your most significant purchase, and it is often your cornerstone of wealth creation. It makes sense to find out how a home purchase impacts your overall life financial plan.
2. Switching Jobs During A Home Search
This one sounds like a no-brainer, but I see it all the time. Switching jobs, even if it is a lateral or upward move, throws a huge monkey wrench in the loan process. The moment you even think this might happen circle all your financial professionals together to craft a strategy to handle a potential change.
3. Looking For Pretty Over Priorities
Pretty homes turn everyone’s head. If you don’t know your priorities you might buy the wrong home. Before you start shopping, consider what you want from the home you buy. Is it location? Schools? Condition? Space? Neighborhood? If you know this you won’t risk buying a pretty home you’ll regret later.
4. Being Too Transparent
As a listing agent, I see this all of the time. A buyer views a home and speaks candidly and transparently. They reveal their motivations, finances, and experiences. Then the homeowner makes assumptions about what the buyer will do.
It is a great idea to express your appreciation for a home- but never take it over the top. When this happens you give away any negotiation leverage you might have had.
5. Calling The Listing Agent Directly
The listing agent does not represent your interests. Their job, in fact, is to make sure their client gets the best end of the stick and they are probably better at it than you think. Make sure your Buyer Specialist is the best negotiator and let them do their thing on YOUR behalf.
6. Stalking The Home You Love
The homeowner knows when you are stalking. They assume you are now in a fatal attraction relationship with their home and will pay anything to buy it. Be discreet! You can asses weekend and evening conditions of the neighborhood by parking several homes away.
7. Not Asking Enough Questions
Home Buying is emotional but it is a big mistake to buy from the heart without consulting the head. Do your inspections, ask your questions and verify everything! If you’ve chosen a great Buyer Specialist Realtor you can depend on them to spark the questions you need to ask.
8. Listening Too Much To Others
This is a big decision. It is reasonable to ask your friends and relatives for advice and opinions. You might think they will tell the truth because they have nothing to gain. But ask ten different people and you’ll get ten different (conflicting) opinions. There are too many variables and all you’ll probably do is confuse yourself into paralysis.
No one, not even your Buyer Representative, can tell you what is best. Feel the Force, Luke.
You might be reconsidering your plan to shop for a home without the best negotiator you can find. You are probably wondering how you’ll find a Buyer Representative you can trust. Read, “How To Find A Buyer’s Agent” and settle all your fears!