Are you a first time home buyer? Here are some mistakes you need to avoid! According to the National Association of Realtors, first-time home buyers consisted of 39 percent of all home buyers in 2010. Without first-time home buyers, a chain reaction would occur in which sellers would not be able to sell their houses and in turn not allow them to buy another house and so on and so on.
Many Realtors and economists feel that first-time home buyers have a major influence on the current real estate market trends. These buyers, though eager and anxious to jump into buying a home, have little knowledge of how and why to buy a house. This makes them extremely vulnerable when it comes to buying a house properly and can lead into a potentially harmful situation.
Here are the top 5 mistakes first-time home buyers make when buying a home.
Many Realtors and economists feel that first-time home buyers have a major influence on the current real estate market trends. These buyers, though eager and anxious to jump into buying a home, have little knowledge of how and why to buy a house. This makes them extremely vulnerable when it comes to buying a house properly and can lead into a potentially harmful situation.
Here are the top 5 mistakes first-time home buyers make when buying a home.
1. Buying a house before they are ready. How’s your employment status? Are you prequalified? Have you lined up a Houston Realtor to hire? Have you decided where you want to live for the next 5 years? These are just some of the questions that someone must answer before even thinking about going out and putting an offer in on a house. It’s acceptable to take the time to plan ahead and properly prepare for buying a house. Without this proper planning, buying a house would become a major headache and there would be a better chance of it costing extra time and money in the future.
2. Understanding the costs of owning a home. The time and money of owning a Houston house in order to keep the property maintained and repaired is drastically different from living in an apartment. When budgeting for how much house you can afford, you have to include costs for repairs and maintenance. This includes anything from lawn, tree maintenance, exterior upkeep on roofing, siding, windows, and mechanical issues or maintenance just to name a few.
When looking at a Houston home and setting a budget for repairs and maintenance, understand that the age of a house has a large role in the amount and frequency of work that will need to be done. A brand new house will require some upkeep but not nearly as much as an eighty year old Victorian house. Using an experienced Realtor, David J. Moore, ABR,GRI and a home inspector will greatly help the chances of getting an idea of how much you will need to budget for.
3. Thinking that bank owed foreclosures or short sale properties are great deals. Contrary to what the media tells everyone about great deals in Houston real estate, buyers have to become very knowledgeable about how much a house is worth when analyzing how much they are willing to pay for any property. If the sign says foreclosure, it may be priced right, but understand that these houses are typically left unmaintained or neglected for a long period of time. These types of properties can quickly turn into a money pit.
A great deal for one person does not always mean the same thing to someone else. When someone is looking at any Houston foreclosure, it is important to weigh the option of time vs money. Most people have neither when it comes to fixing up a house. Sometimes a great deal is buying a house at or a little less than market price and being able to move right in. Use good judgement when deciding if buying a foreclosure is worth the effort.
4. Not thinking about resale when buying a house. When looking through homes during a house search, it is very common to buy a house using emotion instead of logic. Once emotionally attached, it becomes harder to buy a house based on what the market will bare rather than what someone thinks the house is worth.
First-time home buyers need to understand that at any time they may be in a situation where they need to relocate or sell fast. Paying more than what the house is worth or banking on appreciation from owning the house are the worst reasons to pay more than what the house is worth. It is wise to base an offer price off what the house can resell for in a year rather then going off of personal attachment. First-time home buyers can typically get wrapped up emotionally in the deal and lose their sense of logic.
5. Skipping a home inspection. After an offer is accepted the most important step when buying a house whether you are a first-time home buyer or any buyer is to order a home inspection. A home inspection is used for multiple purposes in the home buying process. The number one advantage when using a quality home inspector is to become aware of any or all defects that are not visible to the untrained eye. A good inspector will scope the property from foundation to roof on every possible flaw to protect someone from a house purchase that will cost them time and money after they purchase.
After the home inspection, the buyer will be able to use this in many different ways. If multiple things are wrong with the house, they will be able to safely and properly back out of the purchase contract. It can also be used to their advantage as leverage for a negotiation tool to get a better deal than what they originally had their offer accepted for. It is best to combine the opinion of the inspector along with the knowledge of the Realtor to help make these large decisions.
In conclusion, for a first-time home buyer starting to look for their first house, now is the time. It is your responsibility to take the proper steps in preparing yourself for one of the largest investments of your life. Trying to minimize any mistakes will help a buyer become rewarded in as many ways as possible when it comes to home ownership.
2. Understanding the costs of owning a home. The time and money of owning a Houston house in order to keep the property maintained and repaired is drastically different from living in an apartment. When budgeting for how much house you can afford, you have to include costs for repairs and maintenance. This includes anything from lawn, tree maintenance, exterior upkeep on roofing, siding, windows, and mechanical issues or maintenance just to name a few.
When looking at a Houston home and setting a budget for repairs and maintenance, understand that the age of a house has a large role in the amount and frequency of work that will need to be done. A brand new house will require some upkeep but not nearly as much as an eighty year old Victorian house. Using an experienced Realtor, David J. Moore, ABR,GRI and a home inspector will greatly help the chances of getting an idea of how much you will need to budget for.
3. Thinking that bank owed foreclosures or short sale properties are great deals. Contrary to what the media tells everyone about great deals in Houston real estate, buyers have to become very knowledgeable about how much a house is worth when analyzing how much they are willing to pay for any property. If the sign says foreclosure, it may be priced right, but understand that these houses are typically left unmaintained or neglected for a long period of time. These types of properties can quickly turn into a money pit.
A great deal for one person does not always mean the same thing to someone else. When someone is looking at any Houston foreclosure, it is important to weigh the option of time vs money. Most people have neither when it comes to fixing up a house. Sometimes a great deal is buying a house at or a little less than market price and being able to move right in. Use good judgement when deciding if buying a foreclosure is worth the effort.
4. Not thinking about resale when buying a house. When looking through homes during a house search, it is very common to buy a house using emotion instead of logic. Once emotionally attached, it becomes harder to buy a house based on what the market will bare rather than what someone thinks the house is worth.
First-time home buyers need to understand that at any time they may be in a situation where they need to relocate or sell fast. Paying more than what the house is worth or banking on appreciation from owning the house are the worst reasons to pay more than what the house is worth. It is wise to base an offer price off what the house can resell for in a year rather then going off of personal attachment. First-time home buyers can typically get wrapped up emotionally in the deal and lose their sense of logic.
5. Skipping a home inspection. After an offer is accepted the most important step when buying a house whether you are a first-time home buyer or any buyer is to order a home inspection. A home inspection is used for multiple purposes in the home buying process. The number one advantage when using a quality home inspector is to become aware of any or all defects that are not visible to the untrained eye. A good inspector will scope the property from foundation to roof on every possible flaw to protect someone from a house purchase that will cost them time and money after they purchase.
After the home inspection, the buyer will be able to use this in many different ways. If multiple things are wrong with the house, they will be able to safely and properly back out of the purchase contract. It can also be used to their advantage as leverage for a negotiation tool to get a better deal than what they originally had their offer accepted for. It is best to combine the opinion of the inspector along with the knowledge of the Realtor to help make these large decisions.
In conclusion, for a first-time home buyer starting to look for their first house, now is the time. It is your responsibility to take the proper steps in preparing yourself for one of the largest investments of your life. Trying to minimize any mistakes will help a buyer become rewarded in as many ways as possible when it comes to home ownership.
Please visit us at www.DavidTheLocator.com or call us at 281-326-HOME so that we can guide you into making the best decision when it comes to purchasing your first home!
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