Common Homebuyer Missteps

We love first time home buyers. The energy and excitement they bring is easily matched by our own energy and excitement as we search for their first home. We understand that first time home buyers often have limited understanding of what the process actually looks like, and we make sure to walk through the process step-by-step with our buyers. However, we always like to provide first time home buyers (and home buyers in general) with as many resources as we possibly can, even prior to beginning the home search. Over the next several weeks we will be discussing several common missteps made by first time buyers (and buyers in general). We believe this information is valuable to all potential buyers, and we know this information is a good reminder for our team as we work with our buyers. It is our goal that none of our buyers make these mistakes but instead find the home of their dreams and love it for years to come.

Misstep #1: Not knowing what your true price range really is.

Many buyers limit their search strictly to what their lenders have approved them for or within a “comfortable” price range. Looking at homes in higher price ranges is not a bad thing nor is it our agent’s attempt to get a higher commission. The advantage of this higher price range is a buyer might find a very nice home and negotiate the price down into their price range.  The risk, in today’s market we have a limited number of homes for sale. This means often homes have multiple offers. If a buyer cannot afford the asking price, it is not likely they will have their offer accepted. However, a buyer might miss out on the perfect home by narrowing the price range too extensively.

In contrast, expanding your price range to include homes in a lower price range may enable you to find a true diamond. While some homes may require work, there are a lot of solid, move-in-ready homes waiting for a buyer to come along and fall in love with. Some sellers are extremely motivated to sell, and will sell a quality home at a lower price simply to unload it. This is a buyer’s perfect opportunity to snag a real deal on their dream home.

The moral of the lesson is to feel free to expand your search to price ranges above and below your actual price range. You may say, “But what if I fall in love with a high priced home and then my offer is not accepted?” Well, our next blog covers Misstep #2: Walking the fine emotional line. Stay tuned.