7 Home-Buying Mistakes Almost Everybody Makes
gifting money for a down
payment, their input may be
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For most people, a home is
the largest purchase they’ll
ever make, so choosing the
wrong property can have
disastrous implications for
their wallets and well-being.
Still, many homeowners feel
a strong sense of pride in
putting their mark on the
property, building equity
and having a place to truly
call their own.
Whether you’re a seasoned
or first-time buyer, here’s a
look at seven home-buying
mistakes to avoid.
1. Using the wrong real
estate agent. Just because
your sister’s college
roommate’s friend just got
a real estate license doesn’t
mean she’s the right agent
for you. Real estate agent
Herman Chan suggests
vetting agents and looking
for someone who does real
estate full time and knows
the local inventory.
“You can lose an offer if
you’re not responsive in a
couple of hours,” he says.
Request the agent’s sales
data, and find out how
he or she communicates.
Chan recommends asking
questions like these to
gauge the agent’s techsavviness: “Is it OK if I text
you? If I can’t make an open
house on Sunday, can you
shoot me a video?” If you
prefer to check texts and
emails on your phone, you
may not want an agent who
insists on faxing documents.
2. Shopping before you get
preapproved. Before you
get serious about buying
real estate, find out how
much mortgage you qualify
for and get a preapproval
letter from your lender.
“If you fall in love [with a
property], write that offer
and then find out you can’t
afford it, it’s an emotional
roller coaster you can’t
afford,” Chan says. Many
agents won’t even take
buyers to showings until
they have a preapproval
letter for that very reason.
3. Maxing out your spending
power. Qualifying for
a-million ringgit mortgage
does not mean you should
buy a Mansion. Jon, regional
sales manager for a real
estate agency, says he’s
seen people, especially
first-time buyers, make this
mistake. “It’s wiser to be a
little more conservative,” he
adds. Homeowners have
additional expenses such
as property taxes, condo
fees and maintenance
that renters do not, so
some first-time buyers fail
to budget for these extra
costs and assume they can
afford a monthly mortgage
equivalent to the rent they
paid.
4. Taking advice from
outsiders. Parents, relatives
or friends who haven’t
bought property in the local
market may not understand
local pricing and market
conditions. Parents or
in-laws who own houses in
the suburbs may also have
unrealistic expectations
about what the equivalent
amount of money buys in
the city. “Be careful about
people that are giving you
advice from across the
country,”. When parents are
5. Skipping the inspection.
Home inspections can help
alert potential buyers to
problems such as structural
issues, faulty wiring and
other problems a layperson
probably wouldn’t spot. But
if you’re in a market that
moves quickly, you might
be tempted to skip an
inspection to make the offer
more appealing. Insisting
on an inspection might
slow the process, but any
seller that is going to knock
you out because of that is
probably hiding something
anyway. You’re spending
hundreds of thousands
of ringgit, [so you want] to
make sure you’re getting
what you think you’re
getting.
6. Overdoing contingencies.
While home inspections
are recommen FVB