Homebuyers: Dodging these errors could help in ensuring the smoothest possible real estate transaction.
Buying a home is one of the largest transactions most people make in their lifetime. So, it’s essential for homebuyers to have ongoing support as they find their ideal property and navigate the process through a successful closing.
All prospective homebuyers – including those purchasing for the first time – can benefit from avoiding these five mistakes:
Mistake 1: Not working with a real estate agent
While most people begin the homebuying process online by scrolling through listings and saving favorites, they quickly realize how overwhelming it can be to narrow down options – or to see potential in prospective properties.
According to the 2023 RE/MAX Future of Real Estate Report, U.S. homebuyers have identified needing the most help from a real estate agent with three specific tasks:
• Researching listings
• Identifying wants, needs and priorities
• Making home repairs and renovations
As the expert on their local community, a qualified real estate professional with a track record of success can curate a selection of homes and help the buyer as they narrow down the list of candidates.
The skills of an agent come in handy throughout the process. The same RE/MAX report cites a lack of understanding of real estate terminology as a top barrier for consumers pursuing homeownership. A trusted professional can translate industry lingo and help buyers feel informed every step of the way. Plus, by leveraging their knowledge and local expertise, an agent will use their negotiation skills to help the buyers get the price and/or terms they are looking for.
Mistake 2: Not getting pre-approved
The pre-approval process entails a mortgage lender assessing a prospective homebuyer’s finances, usually based on their credit, and providing an estimate on how much money they could borrow to buy a home. Once this step is done, buyers can close a home loan faster if they’re trying to lock down a property on a short timeframe.
Plus, getting pre-approved for a mortgage helps buyers determine a realistic budget and shop in their price range.
Mistake 3: Not being realistic about necessities with contributing parties
When searching for a home, it’s natural to want it all – and it can be especially difficult to compromise on certain features. However, when buying a home with a partner, family member, or friend, it’s important to be on the same page in regard to priorities.
Come up with a list of wants vs. needs, and make sure all contributing parties are in alignment. This can save time and help prioritize which properties to pursue. When assessing a home that meets the criteria for needs – like location, accessibility features, or bedroom count – buyers can connect with their agent to assess the renovation potential for other features they desire.
Mistake 4: Not getting a home inspection
When the housing market leaned heavily in favor of sellers over the past few years, many homebuyers chose to forego a home inspection to gain leverage over competing offers. Now with the market starting to rebalance in many locales, opting out of a home inspection is an unnecessary risk.
During an inspection, the home inspector – who is often recommended by the agent – will check for pre-existing damage on the interior and exterior. This could entail water damage, structural issues, ill-functioning HVAC systems, air quality concerns, and more. If problems arise, the agent and buyer discuss the best next steps to take.
Mistake 5: Not saving money for extra costs associated with buying and moving
Saving up for the down payment on a home is a huge accomplishment. But it’s critical to prepare for other costs as well.
Other potential expenses include closing costs, moving fees, monthly mortgage payments, regular maintenance, emergency funds in case anything in the home needs repair or replacing, and more.
Ultimately, a little effort can go a long way when it comes to avoiding these mistakes and making the homebuying process as smooth as possible. Best of all, the reward will be that much sweeter once the buyer moves in and can enjoy the many benefits of homeownership.
Ready to start the homebuying process? Find a local RE/MAX agent today.
Article originally appeared on RE/MAX.
