First-Time Home Buyers Make 5 Mistakes
First-timers on anything can be so eager that they will jump into things head first. What we see in Real Estate seems to happen over and over with First time home buyers.
- They’re unpreparedBuyers believe that they know what they can afford and all they have to do is write an offer on the first good home they see.
- They should actually first speak with a lender so that KNOW what they can afford, what they need for a deposit, what their payments would be and get a required letter of PreApproval from that lender to be fully prepared when they find that WOW home.
- Choose a knowledgeable Real Estate agent, with experience, and one that is looking out for you not just a paycheck!
- Their priorities are not in order.Buyers will often go out and buy a car without weight the facts that a lender will also weight in that INCOME to DEBT RATIO is very important and if they buy a car, even though they can afford the payments, that will increase the DEBT and will decrease their chance of getting the size of the loan they need for the home they want.
- Everything is on line nowOnline sites are great for information but it is important that you meet face to face to get rid of the Mystic idea of the process. Same goes with a real estate agent. They can answer all your questions. You may not understand.
- A face to face with all of your agents will help you understand, get what YOU want and make this process a more enjoyable and financially sound event. This is a very IMPORTANT event in your lives, it may be the single largest purchase you will make
They bank too much on online home values. Some websites will give an incorrect sense of Real Estate value. If the buyer sees online that the online service values a home at $900,000 and the REAL market value is $1 million then they will be approaching the buying of this home in such a way as they could lose their dream home and a great long term investment.
- The buyers should experience seeing homes with their Real Estate agent to get an idea of the difference in value based on LOCATION (ie if the home sits inside the community or backs to a street), VIEW (backing to a street is not necessarily bad if you have a view, or even a larger lot that you want), UPGRADES and condition ( since those can be added later if the FLOORPLAN is exactly what you are looking for)
- Buyers sometimes do not have a home inspection. Buyers wanting to save $4-500 to not have the inspection, could be saving the pennies that would have saved them 10 times that. Neither the buyer or the Real Estate agent are electricians, plumbers or construction experts and the inspection could bring to the buyers attention expensive repairs needed in the home. This would, since todays homes are sold in AS IS condition, give you an opportunity to get a credit back for these unknown factors, OR give you an opportunity to cancel the escrow and save you lots more money.
- Always use a professional. Always call Marlene Dietrich at 949-400-3099 Or Email at MarleneDietrich@Realtor.com visit us at http://www.MarleneDietrichRealEstate.com