The prospect of purchasing a home comes with a lot of feelings. At the very least, purchasing your first home is an overwhelming experience. These feelings are often magnified, especially if you’re a first-time homebuyer; still, seasoned homebuyers usually find it challenging at times. To that end, most of the homebuyers often experience setbacks when it comes to striking the deal.
Sure, no process is perfect, and mistakes are bound to happen. However, it’s how you deal with these mistakes that define the results. Even better, having preventative measures will avoid instances of making mistakes altogether. And the good news is, it’s entirely possible for first-timers to get proactive in their mitigation efforts.
Before we look at some of the tips and mistakes that first time home buyers should avoid, go through this helpful article that outlines the checklist for home buying in 2019.
Keep Emotions in Check
While there is nothing wrong with getting an emotional connection with a purchase, you break a cardinal rule when you let the emotions dictate the terms of purchase. When making any transaction, always let numbers guide you. Provided you’ve done thorough research; you should have an idea of what the property goes for. You should by no means, let emotions allow you to pay more for the property. Always remember that more houses are going to come along, and this should help you lose the inclination to purchase based on emotions.
Hire an Agent
Sure, in the advent of technology, finding a home has become even simpler. In any case, you simply need to browse through the internet, and with a simple flick of a button, you have a home of your dreams. While there is a possibility you might find a home of your dreams, I fear it might be the exception rather than the rule. Having an agent to help you with the selection process is of the essence. There are numerous reasons why you would want to have an agent hold your hand during this process.
Some of the reasons include:
- An agent has a comprehensive listing of the entire property catalog, some of which aren’t in the market yet
- Agents will do a thorough preview of the potential property
- Agents can generally spot overpriced listings and will advise you accordingly
Don’t Neglect Loan Pre-Approval
A pre-approval letter from a lender goes a long way to ensuring you secure the property you want. Ironically, a majority of the first-time homebuyers often neglect to get pre-approved for their purchases. For starters, it’s crucial that you determine how much property you can afford. Remember that a majority of the lenders are always inclined to do business with those with already preapproved for specific loan amounts because there’s less risk of the deal falling apart.
Negotiate the Offer
Rather than comparing sales of properties, you should negotiate the asking price for the property. It’s a mistake to compare prices since each property is independent of the other, and sellers have the right to set the prices as they wish. An agent, however, can help in providing comparable sales as well as thoroughly assess the pending sales. Comparable sales are often that sale that are similar to your potential home. They are similar in several aspects, including location, size, and condition. However, if several buyers are vying for the same inventory, you might be required to pay more for the property.
Do a Home Inspection
The home inspection requirement varies between states. In some states, for instance, an inspection is done before the potential buyer makes a sales offer. In other states, the home inspection is a contract contingency, meaning you can cancel the contract if the home does not meet your expectations. The good news is, sellers are generally required to make the repairs if a problem arises.