FIVE MISTAKES FIRST-TIME BUYERS MAKE
The time has come. You are taking the plunge and living out the American dream of home ownership. This experience can be an exciting time or it can be a never-ending process of frustration. It all depends on your approach.
Our friend Roy Machado, owner of All City Realty Group, has teamed up with us to save you A LOT of headaches. We’ll be discussing the five most common mistakes new home buyers make before stepping foot into their new home.
If you are thinking about buying a home anytime soon, take notes. If you recently went through the process, we want to hear how you scored.
Mistake #1: Setting Yourself Up For Heartbreak
Roy: Very often new home buyers get excited about the concept and the idea of buying their first house. However, quite often individuals do not get or forget to get pre-approved before they go out searching for their first home. Unfortunately, not being pre-approved can result in a pretty hard reality. This hard reality often means you won’t be able to buy a house at all.
Tip: Be sure to hit the bank prior to house searching and see what you can afford and can’t afford. This will eliminate a lot of heartbreak further down the road.
Mistake #2: Having Champagne Taste With A Beer Budget
Roy: Quite often, first-time homebuyers tend to think that the first home they buy is going to be the last home that they will ever own. Therefore, they often overextend themselves finically to get all the bells and whistles on their first house. It’s not a bad thing if you can afford it, however, it is quite common for individuals to over-extend themselves.
Tip: Take in consideration that life happens. You never know what it may bring you. You could be one accident, tragedy or job loss away from losing your house when you try to overextend your budget. The average home buyer purchases two or three homes in their lifetime, so why not hold back on the pool and the three car garage and save that money for a rainy day.
Mistake #3: Stereotyping Neighborhoods & Areas
Roy: We are all guilty of doing it on some level, but break out of it. People often stereotype certain neighborhoods and communities. They immediately take them off their list of livable areas because of word of mouth experiences or the general public’s view. Unfortunately, when someone does this, they shut doors to new opportunities. Often these neighborhoods hold unique cultural experiences and communities with ownership pride. Quite often, these attributes are exactly the attributes that first time home buyers should look for when purchasing a home.
Tip: It’s ok to know what you want and don’t want, but stay open-minded and explore other communities and neighborhoods that might not have been on top of your list.
Mistake #4: Putting Your Wants Over Your Needs
Roy: Expectations are always present in different aspects of our lives, including home-buying. First time home buyers often create very unrealistic expectations for themselves. What buyers feel they should get when buying a home can quickly become a distant fantasy. This can immediately turn an exciting and rewarding experience into an unpleasant and challenging reality to overcome.
Tip: The key is to balance what you really need vs. what you want when looking to buy a home. As long as you keep expectations reasonable and realistic you will always come out with the best possible home.
Mistake #5: Buyers Aren’t Engaged In The Process.
Roy: It is an overwhelming feeling purchasing your first home. A buyer is committing to a 30-year loan between $100,000-$500,000! That’s crazy thinking about it. Buyers make the mistake of leaning on professionals who are not committed to this profession of real estate and financing.
Tip: Make sure to partner up with qualified real estate professionals that do real estate full time as their career with a good track record. This will help in making sure the buyers are educated in the process of home buying and knowledgeable in what documents they are signing.
This is a post in a series of collaborations with All City Realty and Unseen Heroes. From time to time, we partner with community focused brands and organizations to help spread useful information to our readers. In return, they help keep the lights on. For a better idea of what All City Realty Group does, please visit www.allcityhomes.com.