House Hunting Mistakes to Avoid

If you don’t use a real estate agent or spend too much when buying a home, you can put yourself at a huge disadvantage. When purchasing your first home, a lot of things could go wrong, and making mistakes is almost guaranteed. In this blog post, we lay down some of the most common house-hunting mistakes and how to avoid them.

Spending More Than Your Price Range

This may seem like an obvious mistake to avoid, but it happens more than you think. If you see a house that exceeds your budget, there’s only one thing to do: don’t buy it. Instead, think about the consequences of overspending and how that level of debt can cause serious harm.

It’s ideal to have around three to six months’ worth of expenses in your savings to help cover any emergencies. It’s also good to know how much you need to pay each month and ensure that your monthly mortgage won’t eat up too much of your budget every month.

Not Working With a Real Estate Agent

In today’s highly competitive world, a real estate agent can mean the success or failure of your house hunting venture. When buying a home, they serve as a navigational tool when reading the fine print for a home that catches your interest.

However, when looking for agents, remember that not all real estate agents are realtors, but all realtors are real estate agents. While both are certified, only Realtors are members of NAR (National Association of Realtors), which means that they have a strict code of ethics.

Not Looking at Other Options

Being realistic in your search will help but being able to compromise and allowing some breathing space is necessary for you to make the most logical decisions. For instance, don’t purchase a two-bedroom house when you’re planning to have kids in the future.

Similarly, don’t buy a condominium simply because it’s cheaper than a house if you hate having to share a wall with your neighbors. You may have to make some compromises in order to afford your first home, but you shouldn’t compromise when it comes to things you deem important.

Applying for Pre-Approval Late

When applying for pre-approval with your lender, they will provide you with an official letter stating that they wish to do business with you. They will then lend you a predetermined amount with an accompanying interest rate based on numerous factors.

Applying for pre-approval early is important because showing a preapproval letter to a seller will show that you have a good financial standing and that you’re a competitive buyer. Doing this will provide you with an advantage over other potential buyers who didn’t think to get their letters early.

Failing to Identify Your Priorities

Experts recommend creating a list of the things you’re looking for in a house. You can do this by splitting your list between your needs, your wants, and things that aren’t important in your house.

For example, maybe you need three bedrooms, would like a patio and are fine with or without a walk-in closet. When you do this, be sure to define the house size, your budget, and location. You’ll also want to be familiar with the school district if you plan to have kids.

Ignoring the Future

It’s important to think of the years ahead rather than just your needs for now. When buying a home, you should think about what you may need in the future. For example, do you plan to have three kids?

Then consider purchasing a home with four bedrooms. When you think ahead, you can reduce the chances of encountering hassles and problems with your home or avoid the need to sell it in the future just to move over to a new one.

Not Performing an Inspection

Once you’ve found the perfect house, your lender will schedule an appraisal where the appraiser will visit the home to assess the home’s value and to check its current condition. However, an appraisal isn’t the same as an inspection.

You’ll be in charge of your inspection and will usually occur once you’ve made an offer. Having an inspection will let you know if there are issues with the house’s plumbing, roof, electrical system, and other important parts of the home.

Conclusion

Buying your first home is one of the most important decisions you can make, but it doesn’t have to be hard. Rather than getting caught up in emotions or the idea of finding the perfect dream home, be sure that you’re making practical and rational choices and putting your needs first. Avoiding these house hunting mistakes will allow you to shop safely and with confidence.

Author

Ashley M. Miller: Ashley has been in real estate since October 2013 and has managed to become a well-loved, top producing, five star preferred, multi-million-dollar Realtor. Leader of The Ashley M. Miller team, she is Your Home Hero. She can be reached at [email protected].