Buying your first home is one of the biggest financial investments you will make in your life. As with anything, the first time you do something, you may be excited and nervous, and have no idea what you are doing. If you are also a newlywed, you and your new spouse may be jumping all in with both feet, to find a place to raise your family. Although finding your home may be exhilarating, it can also be incredibly overwhelming, as there is a lot to know. At Jones Realty Group, we believe that knowledge is power and have developed this two-part series list of common first-time homebuyer mistakes and how you can avoid making them.
Real Estate Agent
The mistake: Many first-time homebuyers see the potential cost of hiring a real estate agent and, naively, decide against it.
How to avoid it: Hire a real estate agent. Most times, there is little to no overhead fee and the seller will be responsible for the sales commission at the time of purchase. Sure, you can search Zillow yourself and find a house you like, but real estate agents have access to homes that haven’t hit the market yet, so you can view them and make an offer before other potential buyers do. Many sellers will not consider a homebuyer that does not have a real estate agent because they view it as a buyer who isn’t serious. Real estate agents can also negotiate to get a better price easier than an independent buyer.
Pre-Approval
The mistake: Skipping the pre-approval process and self-estimating how much you can afford. This only sets you up for failure when you find a house you love and are not able to make a serious offer right away.
How to avoid it: Get pre-approved. If you are serious about buying a home, speak to your lender and get pre-approved. This prevents heartbreak in the future; you can confidently look for homes, knowing exactly what you can afford and what your lender will finance. Getting a pre-approval letter will allow you to put a serious offer on a home and prevent you from even looking at homes that you cannot afford. Speaking of lenders, it is a good idea to shop around, your local credit union where you have your checking account may not always be your best bet—but they could be— do your homework.
Size and Location
the Mistake: One of the most common mistakes that newlywed first-time homebuyers make is purchasing for the now.
How to avoid it: Plan for the future. Of course, you can’t know where life will end up and all the changes life has in store for you, but you can have a general idea of how much room for growth you will need in the near future. Generally, you should purchase a home that will be adequate for ten to 15 years and hope that it can last a lifetime. If you plan to have four children, buying a two bedroom home is just impractical and you will find yourself in the selling-buying position far too soon. If you know your career will have you moving soon, don’t purchase a property that you can’t manage, easily, from a distance. Don’t rush into buying a home; take your time and do some planning before you invest for the long haul.
Motivation
The mistake: Many first-time homebuyers get excited to buy a home because they believe that they will no longer live under someone else’s rules— a parent or landlord. However, many homes have deed restrictions or homeowner associations that offer their own set of rules, along with dues.
How to avoid it: Purchase a home for the right reasons: you have saved the money for a downpayment, are sure about the home you want to buy and its location, and you are ready to settle down for the foreseeable future. Purchasing a home is a significant life event with major financial obligations. The decision should not be made out of frustration of a current living situation or the excitement of a new marriage. When you have found a home that you are interested in buying, look at the new rules by reading any homeowner policies, homeowner association rules, and any applicable city and county laws— such as pet breed restrictions and home business limitations.
Buying a new home doesn’t have to be overwhelming when you have an experienced real estate agent on your side. Call the real estate dream team at Jones Realty Group for your free consultation today! Stay tuned for the next part of this two-part series.
