Common Home Buying Mistakes, Part II

A Must Read for all Home Buyers!

by Jacquelyn Brinker, Branch Manager, Union National Mortgage Company

In July, we discussed three mistakes many home buyers make while shopping for or buying a home (if you missed it, see the NC Archives, July 2008). Can you identify with any of these common mistakes?

1. The Home Inspection – volumes have been written on this subject. The Federal Housing Administration recommends each buyer get an inspection. An FHA buyer must acknowledge they have been advised to do so. An inspection by an ASCHI certified home inspector is highly recommended before removing an inspection contingency on a purchase contract.

2. Don’t go it alone – unless you have vast experience in real estate or construction, professional guidance is essential. Take advantage of the expertise a professional Realtor® offers. Make certain your needs and desires are clearly communicated at the onset. You don’t want to see a variety of townhomes when you really want a log cabin with acreage. Ask your “agent” about buyer agency to protect your interests.

3. Don’t sweat the small stuff! Nothing is perfect. Many buyers want or expect perfection in a home. Perfection is a non-existent commodity. Identify the major and minor points. Paint color, of course, is minor. Changing a floor plan – major! If you need a first floor master bedroom, buying a home without one with the idea of renovating another room into the bedroom (and knocking out a wall or two) can not only be costly, but could endanger the structural integrity of the home. Consider the homes that best meet your needs from the onset. Don’t focus on the small details (countertops, wallpaper, or carpet, for example). While these are important aesthetically, they are more easily remedied than a major remodeling project.

Remember that you live on the inside of the home, but the exterior draws a buyer to the property. Don’t be afraid of a diamond in the rough that may need some landscaping work, provided you have the ability and means to make it shine. Curb appeal is a huge factor!

4. Price isn’t everything – no one wants to over pay for a home – or even for a cup of coffee. The truth is that a buyer should never spend beyond his or her means. However, getting “hung up” on a specific price and being inflexible can be as detrimental as over paying. Again, logic must apply. Does the difference of $500 or $1,000 in price make a big enough impact to lose the home of your dreams? One thousand dollars in a mortgage amount translates to less than $7 per month in payment.

5. The resale factor – At some point, your home will be back on the market. Nothing is forever. If you customize your home during your ownership to make it a truly unique property, you risk making it so unique that you shrink the buyer pool when it is time for you to move on. Be objective with your decorating and improvements. It will pay off down the road. Seek advice from an expert in your area (often an agent who markets your neighborhood) before you over improve.

When purchasing your next home, be sure to avoid as many common mistakes as possible, because, of course, “Your Home Loan Matters!”

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