Mistakes Buyers Make When Purchasing a Home

Young Couple Looking At HouseThere are lots of great houses on the market, and finding your home can be a lot of fun – especially if you avoid trouble as you shop. Here are a few misconception pitfalls to consider:

  • “Don’t worry about the particulars – the financing will take care of itself. Just start looking.” Understanding your financing is a crucial part of the process. Many buyers start out immediately looking for that perfect home and fail to prepare by asking their lender lots of questions. What are the costs of your loan? What will your monthly payments be and what will they include? What is PITI? Fixed rate or variable? Being well-informed and having a good understanding of the financial options in front of you will help you avoid finance problems.
  • “Focus on the home you need – you’ll be there for a long time.” Many buyers only think about the here-and-now and few think about resale when they purchase a new home. After all, you’re just now buying a home – why worry about selling, right? Well… buying a home is usually about making an investment in the real estate as well as selecting a great place to live. At some point in the future, it’s not unlikely that your family will get bigger, a job will relocate you, or some other reason to move will come up. Considering now what future buyers may like in your home can be very important to maximizing your future resale value. The better your resale value, the more money that will go into the bank or may be used for a future home purchase.
  • “We’ll find what we like, negotiate a price, and then we’ll worry about making financing an offer.” Sellers want to know that you are a solid, “bona-fide” good buyer who will be able to close on their home, before they will enter into a contract to sell their home. Sellers generally will go with the first bona-fide buyer who will pay their price, and it is very unlikely a seller will say “no” to an unprepared buyer. Showing that you have your financial “ducks in a row,” is also likely to get you a better deal on your purchase.
  • “I’ve looked the house over; we don’t need a fancy inspection.” Over and over again, I hear buyers tell me that they don’t want to pay $300-$400 for the inspection of a home that’s for sale. While it’s true that most home inspections find relatively minor defects typically less than $1000 to correct, some inspections turn up issues in excess of $2000-$4000. You’re about to invest tens of thousands of in a home – it makes great sense to invest a few hundred to help assure that your investment is a wise one.
  • Find a great real estate agent to help! Working with the right agent will greatly improve your whole buying experience. A real estate agent with the right background can help with every step of the buying process, from analyzing your home needs, to finding the right home, to negotiating and closing the deal. An agent should be working with you to make your home-buying dreams come true.

Find us today at www.ThompsonGroupAZ.com or 602-753-0177 to get started on your home purchase!


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