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Wednesday, September 25, 2013

The market is full of homes for sale: Don't make these common mistakes and miss out on the right one

Keeping emotions seperate from financial decision making helps objectify home buying
Inspections are necessary for real estate insurance purposes
By Tiffany Olson

You've decided to buy a new home and you're eager to get to it, but take a moment to get your priorities and emotions in check before you dive in and make some of the most common home buying mistakes. 

Whether this will be your first homeowner experience or your seventh, it's always a bit overwhelming conducting a search among the numerous homes for sale in your market. 

Creating a list of features that you desire in a home is great, but make sure you're looking at the big picture and keeping the future in mind so you can avoid creating problems for yourself down the line.

Making decisions based on emotions

This is frequently the number one error a potential buyer makes. Although many emotions are involved when buying a home, it's best to keep those emotions under control and leave them at the door while you search through listings to find ones matching your criteria.

The first thing that should match up is your budget with the asking price. It's easy to fall in love with a property that's realistically out of your price range, but it's not as easy to downgrade once you imagine yourself making the perfect life in a house you can't afford. Be responsible and limit your search to a specific financial plan.

It can take awhile to come across just what you're looking for, and in the meantime, you can get frustrated and desperate enough that you jump the gun to make an offer before fully considering things like location, neighborhood and renovation costs. On the other hand, you don't want to miss out on a great opportunity by waiting too long to make an offer on something you really like.

Not working with a real estate agent

Going through all of the necessary procedures of buying a home on your own can make for a really difficult process if you don't know what you're doing. Most buyers won't have access to all the homes for sale that an agent will have. Real estate agents have a better chance of pairing you up with properties that correspond with your search criteria and can save you valuable time. Also, getting excited about finding a home you love can result in an offer that's more than the actual appraisal. An agent will know how to deal with a bidding war and is skilled in negotiating fair prices.

Not getting a home inspection

Home inspections are essential for home insurance purposes, and they also play a big part in making sure a buyer doesn't end up with a real fixer upper after they've already made a commitment. It may be hard to hear if your inspector ends up bursting your bubble about your great find, but it can save some major damage to your wallet in the long run. Don't knowingly put yourself in a compromising situation by overlooking crucial flaws on purpose because you may be unpleasantly surprised with repair costs and complications.

Neglecting to think about resale value

The resale value of a home should be just as important to the new buyer as it is to the seller. You never know what life will bring and when the time will come for you to sell the very house you're now purchasing. To prepare for this, you will want to consider all the elements about the property that contribute to resale value.

Make your home buying experience a memorable one. There are enough homes for sale on the market, and more going up each day, that you can take your time and wait for just the right one.

About the author: Tiffany Olson  is fairly new to the real estate game, but is enjoying immensely all of the learning she is doing. 

When she's not researching or blogging about her findings, you'll usually find her making art, reading, or cooking. 

* Image licenses: 1. Woodsy; RGB Stock royalty free;  2. author owned  & licensed