Biggest real estate mistakes
Buying real estate is generally the most expensive purchase that most people make. Buying the right home can be bliss making a serious real estate mistake can cost you serious money. So here are some of the biggest real estate mistakes and how to avoid them-
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- Buying a home because of how it is decorated. While you may be impressed by how a particular home looks it is crucial to keep in mind that unless you are buying the home fully furnished it will be your stuff inside the home. Use the décor as only an indication of how you can decorate. Get real by measuring the dimensions of a home to see if your furniture and other things will fit into it as well. Focus on the floor plan and the square footage.
- Not researching the neighborhood-It is important to keep in mind that you are not only buying the house but everything that is around it. Check out the surrounding area, the amenities and make sure that your home corresponds with the school district you really want (never assume since school boundaries can be misleading). Drive through the neighborhood at different times of the day to see who is out and about. Do not be afraid to talk to the neighbors-you may not want to live next to people who do not even want to talk to you!
- Not thinking about resale-For both buyers and sellers in the real estate market mass appeal is important. While you want your home (or the home you are buying) to be a reflection of you, it is important to understand that a home that is too highly personalized will be difficult to resell. And keep in mind that no matter how much you love your house there may come a day that you cannot or simply do not want to be in it anymore.
- Buying the most expensive home in the neighborhood. The reality is that the most expensive home in the neighborhood tends to depreciate in value while the other homes appreciate. This is due to the fact that generally if a home is considerably more expensive then the houses around it then it is overbuilt for the neighborhood. While you may be impressed by this house it is important to have a clear picture of the entire neighborhood not just that house.
- Not setting a realistic budget-It is important to keep in mind that just because you qualify for a $500,000 mortgage does not mean that you actually can afford it. It is important to have a realistic understanding of what your house payment really is and how it will affect your monthly budget. Having this knowledge enables you to buy and then enjoy a house you can really afford instead of worrying about how you will make the payment every month for the next 30 years.
- Falling in love with the first house you see-There really is not love at first sight in real estate. While you may think that the first house you see is the one (and it may be) you should continue on to see several comparable houses in order to clearly determine the type of house you should buy. Keep extensive notes and record your impressions since houses can sort of run together. Many couples use a rating system to determine which houses they like the best. After making a thorough search you may just return to the first one you saw but now you will really know that it is the house for you!
- Buying a home without a professional inspection-Many potential homebuyers in an attempt to save a few dollars skip having a professional inspection only to move in and find out they have very costly problems to deal with. It is critical to have a professional inspection so that you know your dream home will not turn into a nightmare!
