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By Broderick Perkins, DeadlineNews.com
You know you are ready to buy a home when owning is cheaper
than renting and a home purchase is a natural fit for your
lifestyle and financial needs, goals and obligations. Instead of
making the home-buying decision based on income alone, consider
it in a more holistic context that includes your complete
financial picture. Viewing home buying in a vacuum is a common
misstep first-time homebuyers should avoid. Other potential
slip-ups include:
Not knowing the market
In a buyer's market, buyers who feel a competitive edge are
more likely to leap before they look. The glut of information on
the Internet makes obtaining home buying and local market
knowledge a relatively easy task. Real estate agents, brokers,
lenders, title companies and other real estate professionals
offer free seminars, workshops and classes. The vast library of
real estate guidebooks can also give you an edge. A lack of
knowledge about home buying and market conditions tends to
perpetuate additional buying errors.
Failing to get
pre-approved
Get pre-approved - in writing - for what you can afford, not
what the lender is willing to lend. A written pre-approval
reveals that you are serious about buying and it helps prevent
you from shopping for more than you can afford.
Low-balling
Uneducated buyers tend to offer too little and ask for too
many concessions, including asking the seller to pick up buyer's
costs, to make extensive repairs, or to provide a home warranty.
That could insult the seller, even in a buyer's market. In a
seller's market, it will alienate a seller who has taken the
time to price the home right and prepare it for market.
Paying too much
Avoid multiple-offer bidding frenzies. Make the same price
checks sellers make to price their homes right -- get
comparables, track sale prices in your area, scan the local
newspaper to check asking prices, visit open houses and use a
knowledgeable real estate agent.
Failing to buy low now
to sell high later
Buy the least expensive house on the best block. Buy into the
least expensive neighborhood in the best community. The cheapest
home in a neighborhood, community or region in transition
provides the greatest return on your investment in any market.
As you learn to avoid mistakes, you'll find it easier to put
your emotions on hold long enough to reach your goal. That
prevents buyer's remorse, an all-too-common malady suffered by
ill-prepared buyers.
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