Well, let's name some pitfalls that can occur in the home-buying process.
Waiting for a better deal.
There is an emphasis on getting a good deal when it comes to buying real estate, or anything for that matter! But, what is a good deal? You should aim to pay within a ballpark of prices based on comparable listings in the market. If you are anywhere within that ballpark, then consider yourself successful. To wait until you can find a steal may be unrealistic and leave you waiting for a long time. If you love a home enough, it’s not about getting the best deal. Rather, it’s about paying a price that you’re comfortable with for a place that you love! When you win the bid, you won’t even remember those extra thousands that you may have paid when you’re waking up every morning to that kitchen of your dreams. With that being said, simply researching prices of similar homes in the area will certainly give you a ballpark range of what may make sense to pay.
Waiting for the market.
Similar to the pitfall above, this will leave you waiting for a while! Based on real estate trends stemming back to the 1800’s, the real estate market follows a consistent 18 - 20 year cycle that consists of four phases of rising and dropping prices. It's better to assess the needs and financial capability of your family at the time you are considering buying, and then finding your place in the market; Rather than waiting for the market to reflect where you would like your position to be. Working with your agent and a loan officer will give you the most accurate assessment of your standing in the market.
Getting too attached.
While this may be tough, simply because we are humans with emotions and passions, getting too attached to a listing can be a detriment to the rest of your home buying process, especially if you don’t end up buying that property. Checking a home’s online listing everyday may just leave you with a classic case of “hopes too high.” To combat the possibility of homes continuously slipping from beneath you, be vigilant about preparing yourself to buy a home and work with an agent who will be vigilant in finding that next home.
Lack of meticulous financial planning.
Budget! Budget! Budget! It is so important that you understand your finances up and down so that you are aware of what you can and cannot afford. You don’t want to end up “house poor” by purchasing a home that accounts for so much of your expenses, it leaves you with little space to factor in the entire cost of homeownership (and life), outside of just your mortgage payment. You must be more strategic than ever with your spending as your credit will be heavily scrutinized to see if you can handle a mortgage. Avoid creating red flags on your credit by refraining from making big purchases or changing jobs anytime soon leading up to your closing.
In many places around the country and world, especially here in New York City, quick is the only pace we know. Well, be prepared for the home buying process to be different. Having the ability to plant footing in the process will allow you to understand the experience and your position so that when it comes time to make decisions, you can do so in a timely and knowledgeable fashion. Be willing to look at a bunch of places to get a feel for what you like and what you would be looking for. Once you have a good understanding of your needs, wants, financial capability, and the market, you should be able to make decisions fairly quickly. If you are impatient towards getting this full understanding by first planting your feet, then you may make decisions that don’t ultimately suit what’s best for you in the longer run.
Not having agent representation and a lawyer.
With all that being said, not working with a real estate agent is a big pitfall in any transaction of real estate. Our Real Estate Agents at Casandra Properties, Inc. have the expertise and fiduciary responsibility to serve the best interest of their clients. Having this relationship in place will not only make the actual process of home-buying smoother because you have a professional in charge, but it will also add another layer of protection in the process to make sure that you are protected. In the same light, being willing to work with a real estate attorney will also add a layer of protection that is crucial in this process. The legality in this whole process is intense and can be overwhelming. Working with a real estate agent and an attorney can provide more assurance that you are protected and that all agreements are in your best interest.
Use these tips to avoid pitfalls and make your home buying experience even better!