Buying a house can be a daunting process. The journey can be full of pitfalls if you don’t have the right Realtor guiding you through the process. First time home buyers are the most susceptible to mistakes, causing anything from frustrations to financial hardship. That’s why I’ve made this guide to the top five home buyer mistakes—and how to avoid them.
Mistake #5: Listening to friends and family—instead of your agent.
It’s easy to get caught up in what your family and friends think. Their opinion is very important to you, and that’s absolutely understandable. Even so, the nuances of a real estate transaction are unique to every set of buyers, sellers, and agents. Home values change constantly. Every time a property is listed and sold in a neighborhood, the market values of the homes around them fluctuate. That’s why you need a full time real estate professional who knows and understands market conditions in Williamsburg VA.
Your Realtor will have real time experience with current market conditions, appraisals, market values, seller concessions, and more. Friends and family, on the other hand, do not have this experience. Although it's natural to be nervous and tempted to rely on friends and family as a first time buyer, it's important that you trust the advice of a Realtor who has an understanding of our local real estate market when you make your final decision.
Mistake #4: Buying the most expensive house you can.
You've finally got the response from your mortgage lender, telling you just how much money they’re willing to lend--which is the same as your price range, right? Not the case. All too often, first time home buyers take that number and use it as a starting point. The result is frustration and financial struggles. Too many home buyers purchase a house that is too expensive for their budget, believing that the bank would never lend too much money. The sad reality is that many homeowners who have over-bought spend the next decade or more struggling to make the payments. Instead of judging your price range from your pre-qualification letter, look at your monthly budget and determine how much you can afford to pay. A general guideline is that your housing costs should be no greater than 25-30% of your monthly expenses. When you calculate your payment, remember to include taxes, insurance, and a percentage for maintenance. You’ll be much happier in a smaller or older home that you can afford than buying a big, expensive home that causes you financial stress.
Mistake #3. Making offers that are too low.
The Williamsburg real estate market moves quickly- especially for homes in good condition, priced under $300,000. Military bases provide a constant influx of new people moving to and from the area, so houses are constantly changing hands. Chances are, if you find a home you love, there are other buyers who will love it too. Talk to your Realtor to figure out what’s a fair offer and what is unrealistic. Don’t try to shop for a half a million dollar house on a $300,000 budget, hoping to haggle down to your price. You’ll just set yourself up for heartbreak.
Mistake #2: Waiting too long to make an offer.
Not only does Hampton Roads have the highest concentration of military bases in the country, it is also an attractive area for retirement, second homes or vacation homes, students, college professors, and professionals. It’s no wonder that real estate in the Williamsburg area moves quickly. Homes under $300,000 that have been updated are especially prone to be snatched up the week—sometimes even the day—they are put on the market. If you’re hesitating to put an offer on a home that you love, it’s probably because you didn’t do your homework. The best way to prevent buyer’s remorse is decide how much you can afford and what your needs are. That way, when a home comes along that fits your needs, you can make your offer with confidence.
Mistake #1. Skipping lending pre-qualification and the homework required to purchase a home.
The first step in buying a home is talking to a mortgage professional to get you ‘pre-qualified’ for a mortgage. A mortgage lender can explain monthly payments and advise you on applying for a mortgage. You also need to do some research into your credit history and make sure that your credit is good enough to buy a home. Don’t forget that when you make the decision to purchase a home that you need to be aware of all of your expenses- this is not the time to finance a flat screen TV or a new car. Want to know more about your own credit score? Go to My Fico for facts about credit
I'd love to help you find the perfect home for you in Williamsburg. Take a look at what other clients have to say about me and then contact me at 757.503.1999 or [email protected].