Buying a home is one of the most significant decisions you can make. Being prepared, no matter what’s happening in the local market, ensures that you end up in a home you love without spending too much. 

Learn what mistakes to avoid when starting your home search!

1. Starting Your Search Before Meeting with a Lender

Before you ask your real estate agent to see a property, you need to have pre-approval from your mortgage lender. After meeting with your lender, you will get a sense of how much you can afford. You’ll also be able to prove to sellers that you can secure financing, allowing you to make an offer when you find a property you love. 

2. Draining Your Savings

Just because the bank says you can afford a certain amount, doesn’t mean you have to max out. Consider what you want your monthly payments to be so that you can continue to live comfortably after buying a new home. If your mortgage payment is so high that you have nothing left over for travel, entertainment, or savings, then it’s too much of a stretch. 

3. Letting Your Emotions Rule You

Sometimes, buyers fall in love with a house as soon as they see pictures online. When this happens, they may overlook issues that need to be addressed, or pay more than they originally budgeted. Keep an open mind with every property you view, look for the pros and the cons, and decide from a place of information rather than emotion. 

4. Neglecting the Neighborhood

We’ve also seen people who find a property they love, but it makes for a long commute, or is in a neighborhood they don’t really enjoy. Remember, in real estate, it’s about location, location, location. It’s better to find a property that needs a bit of work and is in your desired location, than a fully updated home in a location that will be hard to sell down the road. 

5. Waiting too Long to Make a Move

Today’s market is picking back up, with properties moving faster than they were in 2020. If you find a home that you love, don’t wait around to see if something better comes along in a few months. 

6. Making an Offer that Isn’t Competitive

Another mistake we see is buyers who want to come in low with their offer, with the belief that the seller will negotiate with them. In actuality, if a seller doesn’t think you are serious, they won’t come back with a counteroffer - they’ll wait for a different buyer. Talk with your real estate agent about what type of offer will be enticing to the seller. 

7. Not Preparing for Homeownership Costs

Most buyers prepare for the closing costs, but sometimes people neglect to think about what happens after closing. It’s important to have savings put aside for your new home, that way you can cover expenses including moving costs, furnishing your new home, minor updates you want to make, and regular home maintenance. 

Are you ready to buy this year? Contact us to get started today!