Once you’ve got it, you need to hold on to it, and if there’s one thing about the housing market it’s that you should never underestimate the challenges that will come your way when you own a house. That’s why it’s important to make sure you aren’t shooting yourself in the foot. Here are a few things to avoid if you’re not too keen on getting that massive purchase you just made taken away:
1.) Hire a bad agent. All agents are not identical, and they certainly don’t have the same amount of knowledge and experience. Hiring the right agent is key to finding a great home you’ll be able to keep for a long time. Otherwise, you could end up putting it right back on the market once you realize this “once in a lifetime dream home” sits downwind from a sewage treatment plant.
2.) Pass on the home inspection. I’m sure I can stress this anymore than I already have (just check out a few of our other articles….almost every one says something about the importance of a good home inspection), but I’m going to try. Without a home inspection you’re risking putting thousands and thousands of dollars down on a crappy product. You need the home inspection, hands down, end of discussion.
3.) Spending all your savings on the down payment. You need a backup fund, plain and simple, and if you spend everything on the down payment in hopes that you will have a lower monthly payment you can afford, you’re setting yourself up for disaster. What happens when one of the pipes burst and you can’t afford to repair it? And besides, if you have to spend all your savings on a down payment in order to have affordable monthly mortgage payments, the house is out of your price range. Move on and find a different house.
4.) Making a split decision. So you walk into a house and you just know, so you decide to make an offer. They ask for more money, you think it might be a bad idea but you want the house so damn bad you accept. Great, right? Not so much. This is a ridiculously significant purchase, and treating it like you just bought a pair of concert tickets on Ebay is about as reckless as you can be. Slow down, do you research, and make an educated decision.
5.) Shushing the professionals. Contrary to popular opinion, your real estate agent is there to help you, not lie to you for their own benefit, and when you have someone with such a vast amount of expertise at your beck and call, it would be stupid not to utilize them! Ask for their input and opinions on a house you’re considering. You might learn some valuable facts you may have otherwise missed.