10 House-Hunting Mistakes To Avoid
Home is where the heart is. The steps to buying a house take a lot of time and effort. So when you are making the move, you need to do it ri...
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Home is where the heart is. The steps to buying a house take a lot of time and effort. So when you are making the move, you need to do it right. House-hunting is a stressful process, but if we are well-prepared, it can be a smooth ride. There are lots of things to be taken into consideration when you are on the lookout for a house. While some have sufficient money to make the house purchase, others might end up taking a personal loan to meet the price. Estimating the minute details like this can save your time and money. So here are some common house-hunting mistakes to avoid in order to make the house buying process successful.
1. No clear idea of what you want
People have different criteria set when it comes to home search. If you have a long list of wants such as a newly built home, single family home, central location, good school district, great neighborhood, close to your workplace, less in price etc. then it is practically impossible to find one. You need to concentrate on what's most important to you rather than expecting to have the best of everything. Be clear and take a realistic approach.
2. Not considering pre-approval
The most important step before you start your house search is to determine how much you can afford and get pre-approval for the mortgage. In today's market, sellers are keen on having pre-approved buyers to avoid any future problems related to money. Pre-approval confirms that you will be able to borrow a certain amount based on your credit score, income, and assets. It might take time but it's something you need to have in hand before house hunting.
3. Fixating on just one neighborhood
Some people make up their mind and are stuck in searching homes in one particular neighborhood owing to reasons such as community, resale value, schools, distance from work location etc. In such a case, it might decrease your chances of getting a wonderful deal for your perfect house. Broaden your search to at least 3-4 neighborhoods and it creates a positive difference.
4. Ignoring the community
Many times we concentrate on the house and forget to check out the community. It is very important to see how the neighborhood is and if it meets your requirements. Do check the access to freeways, schools, grocery stores, hospitals, and public transportation. You may also consider talking to the neighbors in the community which can help you come to a decision.
5. Picking the house you cannot afford
In the process of house-hunting, you may come across a particular house which is everything you dreamt of or may be better than what you imagined. However, it might not be affordable and is much above your budget. If that happens, it is better to avoid the temptation and to refrain from taking further steps. You may feel disappointed at first but there is no point in going for something which you cannot manage. So look for homes in your price range or even less.
6. Hurry to put in an offer
It is true that when the market is on demand, the houses are sold quickly. In spite of that, you need to be pragmatic about the situation and decide if the home you are going to put an offer is the right one for you. If you are in hurry, you might neglect important things. So take a day or two and then make your decision after weighing in all the determinants.
7. Unable to decide for a long time
When you are searching for a house, you see a lot of listings and bookmark the ones you like. Then you start planning for the home tour and are waiting to schedule it. If you are unable to decide on this quickly, it might happen that someone else might like the home, tour it, put an offer on it and even end up getting the home. All this might happen in less than 24 hours which is actually possible given the current market. So, if you like a listing, do not wait to tour the home. Do it as early as possible so that you don't miss out the best!
8. Offering more than required
There is no doubt there are huge bidding wars going on in the current real estate market. This can tempt you to offer a high price for the place you really liked. You may take loans, sell your current assets, use your credit cards etc. to pay for the difference. This can shake your financial stability. Moreover, you may not get the same price if you plan to sell the house in the future. All this leads to huge loss and hence never offer more than required.
9. Neglecting significant flaws
When we really like a house, it is natural that to overlook the flaws. But you need to realize that even minor problems can end up becoming expensive to deal with once you move in. So sit back and decide if you want to proceed in spite of the flaws or wait for a better option.
10. Skipping the inspection
After everything is decided, last but not least is the home inspection. Even though the home looks flawless from outside, it is a must to invest for the home inspection before you make the purchase. It will help in identifying the problems which are not visible to the eye and can help you save a huge amount of money. So never skip the inspection.
House-hunting is a huge step in your life which can drain you emotionally. So relax, sit back and think over every single detail in peace. Once you are clear, go ahead and make your decision.
1. No clear idea of what you want
People have different criteria set when it comes to home search. If you have a long list of wants such as a newly built home, single family home, central location, good school district, great neighborhood, close to your workplace, less in price etc. then it is practically impossible to find one. You need to concentrate on what's most important to you rather than expecting to have the best of everything. Be clear and take a realistic approach.
2. Not considering pre-approval
The most important step before you start your house search is to determine how much you can afford and get pre-approval for the mortgage. In today's market, sellers are keen on having pre-approved buyers to avoid any future problems related to money. Pre-approval confirms that you will be able to borrow a certain amount based on your credit score, income, and assets. It might take time but it's something you need to have in hand before house hunting.
3. Fixating on just one neighborhood
Some people make up their mind and are stuck in searching homes in one particular neighborhood owing to reasons such as community, resale value, schools, distance from work location etc. In such a case, it might decrease your chances of getting a wonderful deal for your perfect house. Broaden your search to at least 3-4 neighborhoods and it creates a positive difference.
4. Ignoring the community
Many times we concentrate on the house and forget to check out the community. It is very important to see how the neighborhood is and if it meets your requirements. Do check the access to freeways, schools, grocery stores, hospitals, and public transportation. You may also consider talking to the neighbors in the community which can help you come to a decision.
5. Picking the house you cannot afford
In the process of house-hunting, you may come across a particular house which is everything you dreamt of or may be better than what you imagined. However, it might not be affordable and is much above your budget. If that happens, it is better to avoid the temptation and to refrain from taking further steps. You may feel disappointed at first but there is no point in going for something which you cannot manage. So look for homes in your price range or even less.
6. Hurry to put in an offer
It is true that when the market is on demand, the houses are sold quickly. In spite of that, you need to be pragmatic about the situation and decide if the home you are going to put an offer is the right one for you. If you are in hurry, you might neglect important things. So take a day or two and then make your decision after weighing in all the determinants.
7. Unable to decide for a long time
When you are searching for a house, you see a lot of listings and bookmark the ones you like. Then you start planning for the home tour and are waiting to schedule it. If you are unable to decide on this quickly, it might happen that someone else might like the home, tour it, put an offer on it and even end up getting the home. All this might happen in less than 24 hours which is actually possible given the current market. So, if you like a listing, do not wait to tour the home. Do it as early as possible so that you don't miss out the best!
8. Offering more than required
There is no doubt there are huge bidding wars going on in the current real estate market. This can tempt you to offer a high price for the place you really liked. You may take loans, sell your current assets, use your credit cards etc. to pay for the difference. This can shake your financial stability. Moreover, you may not get the same price if you plan to sell the house in the future. All this leads to huge loss and hence never offer more than required.
9. Neglecting significant flaws
When we really like a house, it is natural that to overlook the flaws. But you need to realize that even minor problems can end up becoming expensive to deal with once you move in. So sit back and decide if you want to proceed in spite of the flaws or wait for a better option.
10. Skipping the inspection
After everything is decided, last but not least is the home inspection. Even though the home looks flawless from outside, it is a must to invest for the home inspection before you make the purchase. It will help in identifying the problems which are not visible to the eye and can help you save a huge amount of money. So never skip the inspection.
House-hunting is a huge step in your life which can drain you emotionally. So relax, sit back and think over every single detail in peace. Once you are clear, go ahead and make your decision.
