Five Tips That Show What To Avoid When Buying A New Home
Fulfilling the dream of homeownership requires a significant financial investment, however, before any money changes hands, there are a couple of steps that are essential. All too often, failing to follow these steps could lead to you missing out on a home you’re considering. Moreover, you could be left frustrated by your financing options as you may have not explored all your options.
Having been involved in South Florida home inspections, On The Mark Home Inspections, LLC has witnessed a wide range of errors prospective homeowners make in the build-up to the purchase. To help put the right foot forward and achieve your dream, On The Mark Home Inspections, LLC has put together a list of five tips that show what to avoid when buying a new home
Tip #1: Waiting too long to make an offer.
One of the biggest mistakes first-time homebuyers will make in today’s market is waiting too long to get into the real estate market. Because the rates look like they’re going to increase over the coming year(s) continually, buyers should get in as early as they can to avoid paying more later on.
Tip #2: Trying too hard to get less than the asking price.
Many first-time buyers are tech-savvy and comfortable researching homes on their own. Overall, these are positive traits in a buyer. However, because these buyers are typically self-sufficient when it comes to purchases, they often think they know best when it comes to what price they want to offer on the house.
“Buyers rely too much on what they see on the internet instead of the good advice of what they would hear from a real estate agent,” according to Jay Carr, a senior loan advisor for RPM Mortgage in Newport Beach, California.
While sometimes it pays off to be bold in an offer, often the buyers negotiate themselves out of a deal. Pay attention to your real estate agent, who is a seasoned professional, when it comes to putting in an offer, so you don’t offend the seller and lose the house you want.
Tip #3: Not exploring all of your financing options.
Carr says many first-time buyers have grown up thinking they need to save up for a twenty percent down payment before they can enter the housing market. While it is always great to have as much money to put down as possible, many new options are available.
One option is a homeownership investment such as the Unison HomeBuyer program, which typically provides up to half of the down payment you need. The money is an investment in the home, not a loan, so there are no interest charges or monthly payments. This new type of financing — which works in combination with a traditional thirty-year mortgage — can offer greater flexibility and control to the home buyer. It allows you to cut the time needed to save for a down payment in half, lower your monthly payments and avoid mortgage insurance, or increase your purchasing power so you can buy the home you want.
Tip #4: Wanting the dream house right away.
Everyone has a picture in their minds of what his or her first home will look like. Whether you envision a craftsman bungalow near all your favorite bars and restaurants or a classic ranch-style home with tons of land and no neighbors, chances are you’re going to have to trade up to that dream home from your first starter home.
“If you really like the house, you probably can’t afford it. If you think the house is just kind of below what you want it’s probably right in your price range. Get in the market rather than wait to get the dream house,” Carr says.
Carr advises those in the hunt for their dream home to focus on becoming homeowners now and to wait on their dream home until they have built up equity and have higher incomes in the future.
Tip #5: Not having your own representation.
Another mistake a first-time homebuyer can make is not having their own representation (meaning they use the seller’s agent as their own buyer’s agent). While this is not always a bad situation, Carr urges buyers to select a trustworthy real estate agent who will look after their best interests. - (Inputs - BPT)
As the best home inspector in Palm Beach County, Florida, On The Mark Home Inspections is dedicated to ensuring your home and real estate needs are met in an easy and worry-free manner. Our home inspection team put our clients’ needs first and offers comprehensive services at competitive rates. We understand our services are essential when completing a real estate transaction and feeling safe in your home, so we make the process as easy and comfortable as possible for you.