When entering the realm of real estate and home buying, it is imperative to be well informed on your local real estate market. Unrepresented home buyers will have to dig deeper to familiarize themselves with the local market than a buyer that is represented by an experienced real estate agent. There are five cardinal sins when buying a home that can lead you to lose your dream home or pay far more for a property than it’s worth.
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1. Don’t share your excitement with everyone. Being excited about finding a house that you hope to one day call your home is understandable. However, not everyone needs to be clued in on your excitement, especially the other party. Never tell the seller’s real estate agent how excited you are to place an offer on the property or how you would love to turn the spare bedroom into your sewing room. Real estate agents know when buyers are willing to do almost anything to get a home and if they smell it on you, they will try to push you beyond your budget. Act aloof around the seller’s real estate agent, and place a reasonable offer. If your offer is up to their standards, you will get the home on the first try, if not there’s always negotiating.
2. Don’t play with fire. If you are certain that you have found your dream home, don’t place an unreasonably low offer, especially if there is steep buyer competition. If the home truly is as dream worthy as you consider it to be, it is highly unlikely that you are the only interested buyer. If the home is well within your budget, consider placing an offer that is towards the top of your budget in order to knock your real estate competition out of the ball park.
3. Don’t go into this blindly. Buying a home is the biggest purchase of your life. This is not the appropriate time to “wing it.” In real estate, it pays to do your homework. Analyze your local real estate market and homes that match your ideal description. Figuring out the average sales price of homes similar to the one you are searching for will help you make an informed and accurate offer when you do come across a home that you would like to purchase.
4. Don’t fall for a home’s décor. Making an offer on a home simply because you were enticed by its chic décor and spacious furniture layout, is irresponsible. The home staging was likely done by a professional home stager, or was strategically decorated by a homeowner in order to garner more offers. Remember, when in the market for a piece of real estate, you are purchasing the property itself and not much else. The décor and the flashy furniture is rarely included in the price.
5. Ignoring additional expenses. For some reason, first time home buyers seem to forget about the costs that are paired with becoming a homeowner. While it is true that the most obvious cost that you are to incur will be your monthly mortgage, there are lots of other costs that you will be responsible for as well. Unlike renters, homeowners are responsible for the maintenance, protection and taxes of their property, such as garbage pickup, lawn maintenance, property taxes and home insurance. To avoid accumulating a mass of debt, factor these additional expenses into your monthly budget before purchasing a home.
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