For most first-time homebuyers, home searching is absolutely thrilling! So much so, that many, unfortunately, make a number of costly mistakes. From accepting verbal promises to purchasing a house right away without looking around, many first-time homebuyers can turn the largest investment in their lives into a financial burden. That’s why I want to point out four common mistakes that first-time homebuyers make.
1. Not getting pre-approved.
No matter what your budget, you need to talk to a lender before falling in love with your dream home. And don’t just get a “PreQual” over the phone – get a Letter of Pre-approval! Not only do you want to make sure you’re looking at homes you qualify for, but you want to be taken seriously as a buyer should a bidding war erupt!
2. Not thoroughly inspecting the home.
Even after the initial walk-though, far too many buyers simply take the word of their agent rather than inspecting the house. Always insist on thoroughly inspecting a potential house and land package when offered.
I strongly advise buyers to hire a professional inspector as early in the homebuying process as possible. Having an inspector fully inspect the foundation, plumbing, electrical wiring, HVAC, etc., will help you avoid a serious pitfall later.
3. Getting blinded by the first home seen.
No matter how sure you are, placing strong sentiments on a house can put you at a disadvantage. It places you in a mindset where you need to obtain the house by any means necessary. This can mean closing the deal at a higher price or ignoring any structural damages. If the seller sees your attachment to the house, they can be more aggressive in negotiating a deal.
When looking for a house, treat it as if you were looking for a new friend. Like a friend you want to keep, your house needs to be reliable and something you can be comfortable with. Keep a neutral stance when you are given the details of the property. Look past the pros and focus on the cons.
4. Not hiring a qualified agent.
If you think purchasing a home is just like shopping, you’re wrong. There are many financial decisions you need to make before you can close a deal with a seller. Your agent can help you with these.
Keep in mind, your agent doesn’t just find you houses that meet your budget. Rather, they determine which houses within the current market meet most of your criteria while providing you with the greatest value. They’re your ally — or should be!
Hiring any agent without checking their credentials or experience can be a costly mistake! Picking the wrong one can result in paying more than what you can potentially get for a certain property.
An ideal agent should:
- have at least five years of experience.
- have positive feedback. Ask the agent for a list of previous clients, who can provide you feedback.
- have designations on their website, like from the National Association of Realtors®. Also look for specific types of designations, such as Certified Distressed Property Expert (CDPE). Many designations exist and certain agents are more focused on specific ones than others.
By being aware of these four common home purchasing mistakes, first-time homebuyers can be more proactive in ensuring a positive home-buying experience!
Do you have any advice for first-time homebuers you’d like to add? Please leave them in the comments below!
And if you have any questions about home design or about selling or buying a home in metro Albuquerque, be sure to contact me today!
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