Don't Make These Mistakes When Buying Your First Home

 

Are you considering buying your first home? You might have even started the process of looking at homes. If so, you need to be aware of first time home buyer mistakes that are commonly made.

  Here's a typical scenario. Say you have shopped around and finally found a home that meets your requirements. You make an offer and, after some negotiating, it gets accepted. Everything looks good, but you want to make sure you don't suffer from buyer's remorse after the deal closes. You can do that by ensuring you have paid the right price for the right house, and knowing exactly what you are buying.

 

Let's look at some of these mistakes that first time home buyers might make.

 

·   First, make sure you talk to a lender first. Getting pre-qualified goes a long way in helping you stay within your comfort zone and budget let alone lets you know exactly what you can qualify for. Also talking to a lender can help you uncover any problems with your credit report if you let them pull your credit. This is an essential step in buying your first home.

·   Second, let's talk about the starting price. At what price does your Realtor advise you to start bidding? Remember, Realtors make a commission on the final sale price, so they want it to be as high as possible. This is especially true in today's market, with many low cost short sale and foreclosed homes for sale. So to avoid paying too much for a home, start the bidding low.

 

·   One way to find out what you should bid is by comparing the house to other home sales in the neighborhood, which leads us to the third mistake first time home buyers might make. The house down the street that looks exactly the same on paper may not have the same amenities as the house you want to buy. If it sold for a higher price, there may be a reason for that. You may not always be provided with that information, so you may have to do some research on your own. Avoid this second mistake by not only comparing selling prices in the neighborhood, but making sure the houses are actually comparable.

 

·   The fourth mistake involves home inspections. Many times, your Realtor will recommend an inspector to use. Again, it is in the realtor's best interest to sell you the house, so they may recommend an inspector that will make a favorable report. Instead, you can hire an objective inspector to walk through the home with you. Have him or her point out any defects or problems at that time. The Realtor does not need to be there for the inspection, but the seller may wish to be there.

 

So make sure you don't make these four first time home buyer mistakes. Start with talking to a lender, then make sure that you’re bidding at the right point, compare your bid with other homes in the neighborhood, and get an inspector that is working for you. You will be well on your way to finding the right home for you at the best price.