If you are buying a home for the first time, it’s easy to get overwhelmed. Today, I’ll go over the four most common buyer mistakes that you should avoid in order to have a successful transaction.
First-time home buyers are a real asset in our current market. In fact, the National Association of Realtors has just come out with a report showing that first-time home buyers made up 34% of home sales in the month of September.
That said, if you are buying a home for the first time, there are a few pitfalls you should avoid in order to have a successful transaction. Here are the top four mistakes that first-time home buyers make:
1. They don’t get pre-qualified by a lender. Buying a home is one of the biggest, most important financial transactions of your lifetime. It’s very important to understand the numbers going into the transaction. A good lender will be able to tell you how much house you can afford and how your mortgage payment will impact your monthly budget. It’s very important that you talk to a lender before you start looking at homes. That way, you won’t fall in love with a home that’s too expensive for you.
Get pre-qualified before you begin your home search.
2. They wait too long to make an offer. It can make people very anxious to make an offer on a home, but the fact is that good houses will sell very quickly. There comes a point at which you need to take action. You need to be decisive and put your offer in. When you do see a house that you really like, get in touch with your agent to make an offer so you can actually get the home.
3. They make a low offer. Since we are in the era of the Internet, active listings get a lot more exposure these days, and many homes sell right at or just below fair market value. If you make an offer far below market value, the seller may not even look at it. Don’t go into the market thinking you can make a lowball offer. Don’t waste your time; be realistic about how far your money will really go.
That said, how do you know what fair market value is? Your agent can determine fair market value by comparing the property you are interested in to a similar house in the same neighborhood that recently sold. That number is a good indicator of what the home is worth in the current market.
4. They rely too heavily on Internet resources. The Internet is a very valuable source of information for home buyers. In fact, 95% of home buyers begin their home search by looking online at sites like Zillow. Zillow gives estimates on home values, but in our marketplace, those values can be off by as much as 15%. A good real estate agent can actually determine how much a home is worth in the current market. Your agent will examine any issues with the home and compare it to other homes on the market in order to tell you precisely what the house is worth.
If you avoid these four mistakes, you will be able to successfully purchase a home. Of course, the right real estate agent can guide you through the buying process and help you avoid all of these pitfalls.
If you have any other questions about the buying process or about the real estate market in general, give me a call or send me an email. I would be happy to help you!
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