As with several things in 2016, the housing market has suffered many lows. And yet, the National Association of Realtors (NAR) offered a silver lining in their September existing-home sales report – first-time home buyers. First-time home buyers helped drive one of the best months the NAR has seen, by accounting for 34 percent of all home buyers.
While we love to hear good news, sometimes first-timers make mistakes. Here are the top five mistakes that first-time home buyers make (in reverse order)…
5. Relying on friend and family advice: It’s important to trust your real estate agent – he or she holds the expert advice in this process. Taking too much time to consult with your friends or family can delay the search process and derail an offer.
4. Looking at homes beyond your price range: This will only lead to great disappointment. Instead of creating false hope, design a budget plan and stick to it. This will cut down on lost time and expectations.
3. Offering too little for properties: Preparation is key. Know your actual financial status, including your credit score. Once you’re ready to make an offer, do not make low-ball offers, which may insult the homeowner. Work with your realtor to be sure you’re making an offer the seller wants to see.
2. Waiting too long to make an offer: If the buyer knows what’s available and what they want, then they should make an offer right away. You can’t predict who else is interested, and you could risk missing out.
1. Not talking to a lender first: This is, by far, the top mistake that most first-time home buyers make. Talk to a lender before you start house-hunting to get pre-approved for a mortgage and gain a sense of how much you’ll pay in points, mortgage insurance and loan fees. You’ll need to verify that you have enough money to cover these fees, on top of the down payment.
Your friends at Coldwell Banker Heritage Realtors want to help you in your housing search and prevent you from making these same mistakes. If you’re looking for your first home, contact Coldwell Banker Heritage Realtors to ensure a smooth and successful house-hunting experience.