Buying a home is an exciting, emotional and stressful project. Whether you have purchased a home before or are preparing to buy your first home, you don’t want to let your emotions make the decision for you. The following are pitfalls that can be costly:
1. Love at first sight. Don’t fall in love with the first house you see and determine to buy it no matter what. You could end up overpaying for the property. Also, after the sale, you may discover costly repairs that will negate any profit from a future sale. Shop around. Compare.
2. Always looking for a better deal. These buyers are just the opposite of the love-at-first-sight crowd. They think there is always a better deal out there than the one they just saw, or they hope the price will drop on some of the homes they like. Though this is possible, it is highly unlikely, especially in a seller’s market where the inventory of homes is lower than usual. If you pass up a good deal because you think the owner might drop the price later, you are giving another buyer the chance to snatch it up first. If a home has all you want, is in the right neighborhood, and is priced well, buy it before it’s gone.
3. Paying too much for the perfect home. There is no such thing as a perfect home, though sometimes buyers think they may have found one. When this happens, the buyer acts on their emotions because they will do anything to get that house. When you buy a home, you always need to know you can resell it without losing any money. Unfortunately, when people find what they believe is the perfect home, they will often bid high to ensure their offer is accepted and in the process may overextend themselves financially.
4. Unrealistic offers. The opposite of the overpayer is the low bidder. There is a big difference between negotiating a price with a seller and offering an unrealistically low price. Discuss this with your agent before you wind up alienating the seller and possibly the chance to buy the property. Making a realistic bid that is good for you and the seller is the answer to getting the property you want.
Shopping with your emotions rarely yields a good deal. Instead, listen to your Realtor’s suggestions, view several homes, and then make your decision based on a variety of factors, not just your emotions. Once you have selected your home, don’t look back. Enjoy it, make improvements and make it your own, knowing you made a sound decision you’ll be happy with for years to come.
Happy House Hunting!