They say that the market has turned and that buyers are now the ones in the driver’s seat. Naturally what follows is the amount of terrible home buying tips that home buyer will be getting now that they are on the hunt for the perfect home.
Regardless if it is your first or fifth time buying a home, the process of home buying is not an easy one. It’s a great thing we live in an era where great advice is just a phone call and few clicks away. But you can’t read and believe everything on the internet as there is some bad advice circulating around the net as well – so let me save you the trouble and start by listing the following TERRIBLE HOME BUYING ADVICE:
Pre-approved? What for?
Pre-approval serves for only one purpose: finding out what your buying limit is. If you are done simply considering the possibility of buying a home, then it is time to go sit down with your financial advisor, lender or bank rep and get your buying power and spending limit on paper. Remember pre-approvals are not official but can help you avoid major headaches later on in the buying process – like realizing the house you fell in love with is out of your wallets reach.
Borrow your entire pre-approval limit!
First time home buyers are usually making the switch from rental property or never paid rent before life styles because they want something bigger, better and to call their own. If you get a large pre-approval, remember that you have to pay this back. Just because you are approved to borrow a large amount, does not mean you should start shopping for a home that caps this limit. Your future will be full of medical bills, emergencies, possible layoffs, and possibly even the growth of your family. All those factors and others will stretch your wallet until it bursts and cause you nothing but headaches. Live below your means and ensure a safe future.
Offer low and negotiate up
If you start low with an offer that is not in line with the market in hopes of negotiating with the seller just to save a few thousand then you might just get shut out. Plain and simple. You are more than likely not the only person interested in your dream home, so putting in a low-ball offer will eliminate you faster than you can imagine.
Don’t pay their asking price
From cars to flea market antiques. This advice is always heard. In reality the only time you never pay the full asking price is if the home is ridiculously overpriced. But remember, just because you don’t agree or like the asking price does not mean that it is overpriced. Do your research diligently to ensure that you are not offering a low amount and not paying a ridiculous amount. Features and location advantages that are not immediately visible to you may be playing a huge part in the price. Remember to also consider the type of market you are buying in.
You don’t need a real estate agent just call the one on the sign selling it
Buying a home is not easy and very complex. It takes more than just visiting a home and making an offer. Much of the backlash against agents is the amount of commission they receive but there is a great deal of work that an agent does on your behalf during the buying process. Getting the right agent on your side of the transaction ensures that you are represented with a skilled negotiator that has expert knowledge in the area you are buying, and does all they can to help you avoid bumps during the paperwork process – for a seamless transaction.
Just skip the home inspection
You would never buy a car without safety and emissions certificates – so why buy a home without it being approved by a home inspector. Everything looks fantastic on the surface but a home inspection that is performed by a professional who has an extensive amount of knowledge of foundations, HVAC, plumbing, electrical systems, roofing, windows and more will help you to identify any issues with the home. The main advantage being is that you are not buying a second-rate home for the price of a top rate one and you can then use this to further negotiate things like cost, repairs and warranties.
These crazy forms of advice may sound unbelievable but believe it. There are many home buyers who are going into their buying journey with this type of advice in their back pocket and it is usually driven by money and cost cutting mentalities.
For those home buyers that are thinking of buying using a solid financial strategy, support from a savvy agent and planning their long-term goals around property ownership and obtaining an investment that grows in capital – please see my buying with me section to learn how I can help make your buying journey an easy and memorable one.
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