5 Mistakes Military Homebuyers Make
Buying a home isn’t as simple as many would like to believe. And the responsibilities of owning a home can sometimes almost overwhelm military families.
In our inaugural edition of Facebook Live Thursday, Lauren, our Director of Marketing, outlined the top five mistakes military homebuyers make and how to avoid them. They’re all important lessons to keep in mind the next time you go to buy a home.
Below is the recap of the Facebook Live video, in case you missed it. But if you’d like to see the whole thing, funny anecdotes and all, then check out the full video on our Facebook page!
Mistake №1 — Starting the Process Too Late
While some people are apt to wait until they arrive at their new installation to start house hunting, this rarely works out well.
On average it takes between 30 and 40 days to close on a home. But the military only offers you 10 days of “free” temporary lodging. That means you have to account for 20-plus days of out-of-pocket living expenses. That can get expensive, stressful, crowded and frustrating in a hurry.
Solution: As soon as you have an inkling you’ll be PCS’ing, start looking for a new home. Our AgentHeroes and Scouts can help you find and narrow down the perfect place. Once the official orders arrive, you’ll be able to begin the process of buying or renting a home long-distance. That way, when you finally arrive at your new base after spending 50 hours driving 60 miles-an-hour across the country, you can skip temp. lodging and move straight into your new place.
Mistake №2 — Buying a House When You’re Not Financially Ready
The VA Loan is a benefit that makes home ownership a reality for many military families. But buying a house means you’re also buying a whole lot more responsibility.
Air conditioning units break and water heaters tend to explode. Natural disasters CAN happen to anyone and kids sometimes hit baseballs through windows. That’s life. And it’s pretty expensive sometimes. Putting all those home expenses on credit probably isn’t the best choice.
And then the military will ask you to move once again, and you’ll suddenly find yourselves paying mortgage on two homes because your old one hasn’t sold yet.
Solution: Before you buy a home, make sure you have a robust emergency/rainy day fund built up. That financial cushion will allow your family to take care of home emergencies without spiraling out of financial control.
Mistake №3 — Not Buying a House for the Long Game
This is probably the biggest mistake military home buyers make. Homes appreciate (gain value) but it takes years to see the value increase. Location impacts this significantly. But buying a home with the expectation you’ll be able to sell it when you get new orders and make money off of the transaction isn’t very realistic. Selling after only a couple of years you’ll be lucky to break even and you’ll more likely to lose money on the transaction.
Solution: When you go to buy a home, buy with the long game in mind. That means being prepared to become a military landlord the next time you PCS. Selling might mean thousands of dollars lost, where renting means the mortgage is covered for the next two to three years by tenants. The transient military lifestyle requires military homeowners to think beyond their two or three year plan.
Nervous about becoming a military landlord? Don’t worry, MILLIE has you covered. Our Military Landlord toolkit has all the information you need about becoming a landlord. You can click here to download it today!
Mistake №4 — Buying in the Wrong Market or Neighborhood
You always hear real estate agents talking about “location, location, location!” But they have a point. A home that’s in a desirable neighborhood for your family doesn’t mean it’s desirable to the rest of the population.
You also have to consider the market you’re moving into. Are there enough people moving to and from the area to support you being able to rent or sell your home? Is the market over-saturated with homes, making yours just one of the thousands up for sale? Not enough demand can be bad, but too much supply can be worse.
Solution: When you go to buy a home, think beyond your family and your circumstances. You might love living out in the country, but many other families might not want to live so far from base. A downtown loft might be ideal for your family, but too expensive and too cramped for many other families. Think about your potential buyers and renters before committing to a new place.
Mistake №5 — Buying the Wrong House
Yes, that is a thing. Just because you like a house, doesn’t mean other people will. When buying a home at your new installation, keep in mind that it’s not going to be your forever home. Even if you plan on coming back to it in the future, you need to have a plan for what you’re going to with it in the mean time.
Solution: When you go to buy a home, think beyond your family and your circumstances. You might love having a split level home with only two bathrooms, but that could be an absolute deal breaker for many other families. Ask yourself, “What is desirable about this house to the general population? What is undesirable about it?”
Consider what would be desirable to other families before committing to a home. This will help your chances of selling or renting out your home when it comes time for you to PCS again. If you need some inspiration, watch HGTV to stay up-to-date on the latest home and design trends!
Buying a home doesn’t have to be scary, but it does require you to look pretty far into your future. Keep these tips in mind the next time you go to buy a house!
For the full scoop from Lauren check out the video on our Facebook page today! Until next time we’ll be bringing military families home!
