The housing market is finally showing signs of improvement. While this is great news for the economy, real estate agents, and we home inspectors, home buyers are scrambling to buy a home while conditions still favor the buyer. As home inventory begins to decline, buyers may find themselves competing for homes.
If you wish to purchase while conditions are still working to your advantage, now is the time to act. Both first-time home buyers as well as those who have not purchased a home in quite some time will need to know what mistakes to avoid. Taking the necessary steps to avoid the following four mistakes can make a huge difference in how successful you are in purchase the home you want, at a price you can afford.Mistake #1: Shopping first and worrying about financing second
Loan pre-approval is important for several reasons. For starters, you may not be able to purchase a home if your credit score is not good. Many falsely assume that their credit is good enough to qualify for a home loan. Other reasons include knowing what homes to look at based on the size of the loan you have been approved for, and having the ability to show sellers that you are qualified to buy the home.
Mistake #2: Submitting a low-ball offer
Not only will an insanely low offer insult the seller, it could cause the seller to refuse to work with you at all. It is acceptable to offer an amount that is lower than the asking price, but not too much lower. As the real estate market improves, more and more homes will sell for the asking price, if not higher.
Mistake #3: Skipping the home inspection
No offer should be made without it including a specific allowed time period for having the home inspection and if needed, any additional inspections completed. Do have the home inspection done within this time period and then use the home inspection report to determine what actions to take based on the results.
Mistake #4: Failing to have an escape plan
Contingencies can be established in regard to the home inspection, appraisal, loan, and more. You need to have "outs" in the contract should problems arise. Without these, you may find yourself losing escrow money or even your down payment. Protect yourself by having an escape plan written into the offer paperwork.
Though the market seems to be on the way up, there is no need to settle for just any property. There is also no need to pay more than you should. Consider selecting the best possible real estate agent to help you with your search, offer, and purchase. A high quality agent can make a huge difference by providing you with guidance and assistance throughout the home buying process.
