Avoiding Rookie Home Buyer Mistakes

There are many advantages to owning your own home. Owning allows you to take advantage of tax breaks that will enable you to deduct mortgage interest, property taxes, and other costs involved in buying and maintaining a home. It also enables to build wealth as your home appreciates in value.

With any complicated activity that involves finances and various levels of bureaucracy, the margin of error can be rather slim. Real estate is no exception, and there are many mistakes to be made when you’re buying your first home. Watch out for these common mistakes:

 

 

28 Rookie Homebuyer Mistakes

 





1. Assuming you won't get approved for a mortgage.


2. Not checking your credit score.


3. Not budgeting and saving enough money for your first home loan.


4. Not calculating for closing costs and hidden or unexpected costs.


5. Not understanding local and macro housing trends.


6. Not checking the cost of homeowners insurance.


7. Not getting pre-approval from two lenders before you begin your home search.


8. Although it may be tempting, buying the best house on the block is never recommended.


9. Not researching the neighborhoods of interest.


10. Thinking you will get everything on your wish list.


11. Succumbing to “decision paralysis” and losing your dream home to another buyer.


12. Buying too much home or not enough of a home.


13. Not consulting a reputable contractor for the cost of renovations or repairs if needed.


14. Not hiring a home inspector prior to signing a contract.


15. Applying with only one lender and missing a great deal by not shopping around for the best mortgage.


16. Going directly to the listing agent who is hired by and represents the seller.


17. Ignoring the resale potential of the property.


18. Buying a home that is not worth buying, a buyers agent can help choosing the wrong property.


19. Representing yourself and forfeiting the help and guidance of an exclusive buyer’s agent.


20. Being emotionally tied to a home, falling in love can break your heart.


21. Being unfamiliar with what makes an offer attractive to a seller.


22. Estimating a properties fair value, an experienced buyers agent can be very helpful in this regard.


23. Not hiring an experienced local real estate attorney.


24. Submitting an incomplete oral offer instead of in writing with all contingencies if any.


25. Trusting a verbal agreement when buying.


26. Waiving mortgage or valuation contingencies without understanding the ramifications.


27. Not reading the house rules of a Condo or Coop before signing.


28. Not conducting a thorough final walkthrough of the property day of closing.

Happy Hunting!

 

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