Buying a Real Estate Property involves a long-term commitment. It is a big-ticket purchase. Your monthly payments may constitute around 25% to 30% of your family’s financial income. Serious consideration must be given to all factors involved when you’re planning to buy a Real Estate Property. Here are 5 things to avoid when buying a Real Estate Property.
#1 Not getting pre-qualified or pre-approved
People who buy a house without even bothering to get pre-qualified or pre-approved are headed towards a financial disaster. They don’t know how much they can really afford and the costs that come with buying a house. They just feel confident that buying a house will improve their current lifestyle. People who perform due diligence shop around in an effort to get the best deals for they know the impact a mortgage can make to their finances.
#2 Buying more than you can actually afford
Owning a house is your chance to build equity. Don’t get overexcited though. Most people buy a house they want and not based on what their needs are. This often results in buying more than what they can actually afford. People still buy even when they’re having a difficult time making both ends meet. They don’t bother to save money to go big on down payment. They don’t know that a low down payment means they’re going to have to pay for Private Mortgage Insurance. All they think about is having a house.
They think all agents are created equal so they just go with the agent they can afford. This may prove to be a costly mistake because the right agent can help you find the best houses your budget can afford. An inexperienced agent on the other hand still doesn’t have the kind of network or negotiation skills of an agent with more than 5 years of experience. They may find out the hard way the true meaning of the saying “be careful what you wish for”.
#4 Skipping the inspections
They think that, home inspections or home appraisals are just wasting the money they should be paying for the house purchase. They’re dead wrong. Home inspections and Home appraisals are the best way to protect their interests. Just because a house looks good on the outside doesn’t mean everything is in tip-top shape on the inside. They will only find out later on that the heater isn’t working during a cruel winter season.
#5 They don’t have a clear picture of their future plans
Buying a house means staying put and settling down. People looking to buy a house must be very sure that this is where they’ll be staying for the succeeding years to come. Not knowing your future plans means having to relocate yet again because of employment opportunities. It can mean selling your property at a lower price.