Common Homebuyer Missteps: Part 5

 

Home buyer Misstep #5: Not knowing what is truly important to you

While most home buyers have a list of items that could be considered deal breakers (i.e.: square footage or neighborhood preference), many buyers do not stop to consider “consequences” of their deal breaker items, or even of their wish list items. For example, you might insist on a quiet neighborhood. Quiet neighborhoods are good. But if you have children, a quiet neighborhood might mean there are no neighborhood kids for your children to play with. Or if you want a property with views, you may want to consider the fact that most available properties with views are in more rural settings (i.e. away from the nearest grocery store and hospital). For me, being close to the Air Force Base was absolutely necessary. Yes, it's convenient. But the "consequence" is hearing the jets on a regular basis. Luckily, I happen to enjoy not only seeing them, but hearing them as well. Ultimately, only you can answer the question of what is truly important to you, but make sure to take into account both the positives and the negatives of each “deal breaker” item you list.

Common Homebuyer Missteps: Part 4

Home Buyer Misstep #4: Lack of Due Diligence

The concept of due diligence is quite possible the most important tool in a buyer's toolkit. This does not simply mean attending all inspections and asking questions during those inspections- although this is a very important step. Due diligence means going the extra mile to confirm information from sources such as the municipality or even by Googling the property address. While the seller does have the legal responsibility to disclose information on a property, simply trusting the seller is not enough. As a buyer, you want to have as much information as possible before you are fully committed to a particular property. So take some extra time in your home search to understand all the ins and outs of a prospective property. It could save you major headaches down the road.

Common Homebuyer Concerns: Part 3

Common Misstep Number 3: Failing to Choose an Agent You Can Trust

This week we are covering the importance of finding an agent you know you can trust. What’s more, actually trusting the agent you chose and giving them the freedom to show you homes outside your perception of what a home should look like. A good agent knows the potential of homes and may see that potential before you do. A good agent will know your likes and dislikes and also your personality. He or she will find homes to show you based upon more than simply your likes and dislikes. When your agent shows you a home you wouldn’t have chosen yourself, ask questions. Ask what your agent sees in the home and expect them to make a case for why you should even consider the property. Keep an open mind while listening to the explanations. You never know: just maybe this out-of-the-box home will be your next dream home! And remember, there are plenty of agents you can trust; so if you’re working with one that you find yourself not trusting, you may want to think about looking for a new agent. This is all part of the due diligence you as a home buyer must exercise during the entire home buying process. More on this next week!

Common Homebuyer Missteps: Part 2

Misstep #2: Failing to maintain a fine emotional balance throughout the home-buying process

Last week we discussed deciding upon your true price range. This week, we are discussing that emotional line we all walk as home buyers. We want “our” place to sweep us off our feet and be 100% perfect. Sometimes, this may indeed happen; however, oftentimes we are confronted with the reality that our perfect home isn’t out there yet. Those homes which do seem perfect are typically thought of as perfect by other buyers as well, and you may find yourself in a multiple offer scenario. Conversely, there are many flawed homes that could become your perfect home. You don’t want to discount these homes, but you still want to look at homes that seem to be perfect. A good rule of thumb is to visualize homes through the lens of what it could be once you’ve added your personality into the mix. This applies no matter what state the home is in when you visit. If you can see the potential of a flawed home and can be excited about that potential, then that flawed home might very well be the home to sweep you off your feet. Ultimately, you don’t want to make an offer on a home you aren’t excited about- either as it is or as you envision it to be. Also, don’t get too excited until after you have the home inspection and the appraisal report, as these two documents can make or break the purchase of a home. Next week we will discuss the importance of trusting the agent you have chosen for your home search.

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.