Mortgage interest rates are near historic low, but for how long? The price of housing is on the rise. Will the ability to buy that dream home become out of reach? Families are in better financial positions than they have been in for years and are now ready to buy a home. Often buyers trying to beat the rise in interest rates and the price of housing will rush to make the important decision on buying a house, or even worse, act out of emotion. The following are the top mistakes people make when buying a house.
1. Lack of Patience to Find a Better Home: When looking at houses, buyers will have a list of requirement in what they need and/or want. Once they find a house that meets these needs they often stop looking and make an offer because they don’t have the patience to continue looking. Unfortunately, they often miss out on something better at the same price.
2. Becoming Desperate: Buyers may be looking for the right house for a long period of time and not find exactly the one they are looking for. The fear of rising interest rates and housing prices can make these people buy a home that does not meet their needs. Once in the house, the buyer either lives with a house they are unhappy with, spend a lot of money upgrading to what they want, or selling and going through the process all over again.
3. Looking at Houses that are Unaffordable: Perspective buyers have a limit on what they can afford. Once this limit is established they should not look at housing that is too expensive. By doing so, they are taking a chance in falling in love with a home they can’t afford. If they buy a home they can’t afford, they get into obvious financial trouble or once they buy a house they can afford, they will not be satisfied with their purchase.
4. Analysis Paralysis: Buyers can get stuck in a situation where they won’t make a decision on which home to choose. Evaluating every detail of a house over and over. While one buyer can’t decide, another can. Also, buying a home is a time consuming task. Dragging it out takes time away from other activities like work, family or needed recreation.
5. Underestimating a Fixer-Upper: Buyers may look at a house that is bigger than they can normally afford and justify purchasing the house because it needs work. Instead of paying a contractor they intend to do the work themselves and save money. Often, they find they don’t have the expertise to do the work or there is a lot more work than they planned on. Either way, they end up hiring a contractor after all or live with a problem that makes them unhappy.
6. Missing Negative Issues: Buyers can fall in love with a house for many reasons. They may love the kitchen, the neighborhood, the beautiful landscaped yard, the size, etc. Unfortunately, by falling in love with a house for particular reasons, they will often miss negative issues. Once they move in they wonder why they didn’t see these problems before. The old saying: love is blind applies.
7. Offering Too Much Money: Getting involved in a bidding war may cause a buyer to pay too much or a buyer will offer too much when a house first goes on the market to prevent a bidding war. Once the high offer is accepted it puts the buyer in a bad position. First of all, the appraisal from the bank may not be high enough for the desired loan, so the buyer will have to come up with more cash. Later, when they go to sell the house, if it has not appreciated very much the buyer, now seller, will be in a difficult situation financially.
Buying a new home is a complex process with numerous opportunities for making mistakes. The best way to avoid the previously mentioned mistakes is to work with a professional real estate company like First Federal Realty DeSimone in Henderson, Nevada. The Residential Sales Agents provide the highest level of professionalism and service. They can be contacted at 702-990-8660. Potential buyers who use First Federal Realty DeSimone have the peace of mind knowing won’t be making mistakes with their new home.