Studies show that more and more millennials are buying homes. Millennials comprise 36% of the real estate market. For many, buying a home is an essential long-term investment.
Depending on the state of the economy, a house’s value may rise over time. Whether you’re moving or buying a house for the first time, it can be an exciting yet daunting experience. Because homeownership is a large investment, you need to be smart about your choice.
Are you looking to buy a new house? In this article, we show you some of the most common house hunting mistakes. Read on to discover the best way to avoid these mistakes.
1. Not Getting a Mortgage Pre-Approval
The real estate market is a competitive landscape. If you want to secure a deal, you need to get a mortgage pre-approval. Doing this can benefit you in two ways.
First, it lets you know your budget for house hunting. Second, it lets your agent know that you’re a good candidate for a deal. These two can help in securing your position in the market.
Getting your mortgage pre-approval before you begin house hunting is ideal. When you sign up for a mortgage pre-approval, your provider may ask for the following things:
- Fill out a loan application
- Documentation on your income
- Credit history
- Debt, and
This information will tell you how much money you’re eligible to borrow. While it is not necessary to get the pre-approval first, it can improve your chances of getting the home you want. If you’re checking for warranties and insurance, learn more here!
2. Not Thinking Ahead
Owning a house is a long-term investment. When you go house hunting, ensure to have long-term goals in mind. Your future goals may range from raising a family to working from home.
Even if you don’t plan on those any time soon, putting them on your priority list may save you stress in the future. One of the biggest house mistakes is limiting your options. Planning ahead will allow you to grow into your house and not force you to move.
3. Going Alone
Having a real estate agent by your side is a smart move when looking for a house. It may be tempting to go alone and save the commission by going online. However, house hunting alone may prevent you from finding your dream home.
An experienced real estate agent is the best companion you can have in your local housing market. They have direct access to the market, giving you a wide array of available listings. Real estate agents can give you some advice and help narrow down your options.
A good real estate agent has deep knowledge and insights about the area. A reliable agent will not give a sales pitch, but objective advice.
4. Not Keeping an Open Mind
Keeping a closed mind while looking for a house can prevent you from finding a home. While not everyone may have the same aesthetic, being too picky may hurt your chances. If you find yourself passing each house or nitpicking details, change your mindset.
If there’s an element of the house that’s important to you, you don’t have to compromise. However, try to keep an open mind on things that you can change. This could range from a new coat of paint to new cabinets.
5. Rushing During an Open House
When you go to an open house, take your time going around. Giving yourself time to explore will allow you to get a good feel of the house. Look into every nook and cranny including the closets and pantry.
Even if you plan on getting a house inspection, a house with issues right off the bat should not be a part of your list. You can inspect foundations and floors by yourself. During an open house, you can also check if the light switches and windows are in proper order.
6. Ignoring the Neighborhood
Make sure to check out the neighborhood when you go house hunting. Verify whether you feel safe in a neighborhood. Consider researching the neighborhood before you go to an open house.
Understand if the neighborhood attracts singles or homes for families. Check where kids play and if cars speed down your streets. Checking on the surrounding area will allow you to avoid problems down the road.
Check for any amenities that may be important to you. This may include local shops, restaurants, or nearby parks and gyms. Prioritize public transportation and easy access to freeways.
7. Rushing to Put in an Offer
The competitive market may prevent you from securing deals immediately. But if you rush in making an offer, you may end up with the wrong decision. Making sure a potential home is right for you should balance out with the need to make a quick decision.
Try visiting at different times of the day to make sure that the neighborhood is safe. Remember to take all the needed steps to ensure you’re choosing the right home. Take your time researching and thinking about your decision.
8. Offering Too Much
Try not to get trapped into a bidding war on a house with high competition. Avoid offering a high price during a bidding contest. Offering a high price immediately may present some issues later on.
The bank may not give you a loan until the seller reduces the price. You may even end up paying money out of your pocket if you fall short of your bid. You may also not be able to sell the house in the future if market conditions get worse.
Avoid These Common House Hunting Mistakes
Choosing the right home can help you save money, time, and stress later on. Are you looking for a new house? Here are some of the most common house hunting mistakes that you need to avoid.
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