Searching for your dream home is often an exciting time in your life, but the process itself can be long, complicated, and stressful.
To help make sure your home search is filled with more excitement than frustration, we’ve put together a list of common mistakes that buyers make on their journey to their perfect home.
1. Searching Before Getting Pre-Approved
Once you’re ready to begin your search, one of the very first things you should do is speak to a lender and get a mortgage pre-approval. A pre-approval lets you know the highest purchase price you’ll be able to get a loan for, which can help you set realistic expectations before falling in love with a home.
A pre-approval is also one of the main components a seller will look for when you present an offer. In fact, many sellers require a pre-approval before accepting an offer—they want to make sure you’re offering an amount that you can back up. In a strong seller’s market, being ready to go with a pre-approval versus having to wait can be the deciding factor in a multi-offer situation.
2. Being Overly Picky
While you should be specific about what you want in a home—especially considering the size of the purchase—having too many dealbreakers can hinder your search. Distinguishing between your must-haves and nice-to-haves is an important step.
Ultimately, no home is without flaws—so take a moment to think about what you would be willing to compromise on. Are you willing to consider a neighboring town? Can you plan to add in a patio in the future instead of being set on a house that already has one? Little tweaks to your “must-haves” can make a world of difference.
3. Not Being Picky
On the other hand, buyer fatigue can become a real problem after viewing too many properties. At that point, you’ll be more likely to settle for a home that isn’t really a fit—or burn out on the entire home-buying process.
If you feel yourself getting overwhelmed, try to take a step back and being slightly more discerning about which homes you see in person (and limit the number of homes you see in a single day).
4. Not Advocating for Yourself
It’s massively important to speak up for what you want—and don’t want—throughout your entire home search. Communicate with anyone involved in the decision making process, as well as your real estate agent, to make sure you’re happy with your choices. Let your agent know if there are things you don’t like in a home you’re seeing. Remember, your agent is there to help you and likely has no attachment to any of the homes you see.
5. Not Enlisting an Agent’s Help
Tying in to the previous tip, a real estate agent’s primary purpose is to guide, inform, and advocate for you throughout the entire process. Their industry access to market stats, listings, and negotiation standards can save you a lot of headaches, heartbreak, and money.
In an industry like real estate, not all representation is the same. You should aim to speak with multiple agents before choosing one to represent you. You’ll want to ask about things like their experience, local knowledge, and full-time status. You’ll also want to pick someone you feel comfortable enough with to make the process less intimidating.
6. Forgoing Inspection
A home inspection is one of the most important parts of the buying process, even if you’re buying as-is or agreed to only negotiate on major issues. A lot of repairs that are needed—or will likely be needed soon—aren’t immediately apparent without a professional inspection. You’ll want to get an idea of what you should negotiate with the seller on, what you should look out for, and what to budget for down the line.
7. Ignoring the Neighborhood
Though it may seem like a natural consideration to look into neighborhoods, you’ll want to get a feel for what day-to-day life might be like in a potential home. If you tour a home at one time of day, consider driving by at a different time to see if the general feel remains the same.
It’s also a good idea to look into local resources. How long will it take to get to the grocery store or the gym? For families with kids, are there other children around for your kids to play with? Knowing what you want in a community will help round out your confidence during a major move.
8. Placing Too Much Emphasis (or Not Enough Emphasis) on Resale Value
Another factor some buyers may forget about is resale value. Though properties historically have always appreciated in the long run, this may not be the case if you’re planning to move again within a few years. If you fall into this category, be careful not to overlook any potential red flags you see—future buyers will likely see them, too.
If you’re planning to stay in the home for the long haul, you should prioritize things that suit your current tastes and needs. A lot can change over the course of a decade (or more), so focusing on making your house a home is likely more important than worrying about resale value.
9. Taking on New Debt Before Closing
If you take on major debt before closing—such as buying a new car or financing a wedding—your credit score and mortgage approval can be impacted. If you’re planning to make another large financial commitment, wait until after closing to do so. It’s a good idea to check with your lender before you do anything that may jeopardize your buying power.
10. Not Considering All Costs
While your pre-approval is for a list price, there are many other factors to take into consideration. Property taxes, closings costs, professional fees, HOA fees, and insurance are all expenses that may come into play. Talking with your real estate agent and mortgage advisor can help give you a better idea of what finances are required overall.
The smaller costs in buying a home add up, so being prepared will help you to budget effectively and make the transition into a new home much more manageable.
Conclusion
There are a lot of potential mistakes to be made in a home search, but being prepared will help you avoid pitfalls and move confidently though the process. Stay focused on your priorities and work with a trusted team to give yourself the best chance at success. Good luck and happy house hunting!
