I want to share with you a few common mistakes that home buyers make, so that you can avoid them at all costs when you buy a home yourself.
Eek! This is a biggie. You probably know your approximate monthly budget for your groceries, car payment, student loans, gas, and weekend outings. So why, then, would you go into a home search without a budget? The best advice I can give it to speak with a mortgage broker early on in your home search to get a sense of your budget. This way, your agent has a number to be respectful of, and you won’t fall in love with a house you can’t afford.
Try not to get too excited or downtrodden throughout the process. I know you are passionate about your new home. However, there will likely be many ups and downs throughout the home buying process. To name a few…. your credit score is shown to be excellent, you find your dream house, the seller does not respond to your offer quickly, your offer gets accepted, the house has a mold problem…. the list goes on. Stay level-headed and reasonable throughout the process!
The savvy home buyer knows that houses can be renovated, tweaked, painted, and decorated. Neighborhoods cannot be spruced up nearly as easily. Choose your ideal neighborhood and then consider the houses within it. You can always make changes to your home as time goes on.
There are only two times when I recommend lowballing an offer. The first is if you don't love the house that much and are OK with not getting it. The second is if you are an investor and are only interested in buying the house if you get a massive discount on it. Lowballing an offer risks losing the home. Rather than a lowball offer, I recommend a strong offer that is just slightly lower than what you are willing to pay. The sellers will be much more likely to respond to this offer, and it sets the stage for a successful negotiation period.
Check out my page: Why Use A Realtor.