Here are 7 rookie mistakes I’ve seen others make…I’ve bought and sold a number of homes now, and I watch these happen again and again.
The 7 Mistakes!
- They Buy at the Top of their Range. Don’t you want to be able to go out, travel, have a decent car or be able to weather a job loss? Always buy *below* what you can afford.
- They Are Misled By Beauty. There is a reason people hire staging companies or do minor upgrades – it sells homes. Don’t let the beauty of the interior mask real problems of the house…it is far more important that a house functions for you or doesn’t flood, than whether you love that midcentury light fixture.
- They Shop in the “Hot Neighborhood.” You don’t want the hot neighborhood…you want the *next* hot neighborhood. You will pay at the top of market for the cool factor of now…but if you buy in the next place to pop, you’ll have equity for days.
- They Make “Emotional” Decisions. This is the biggest financial purchase of your life…make it with your head, and not *only* your heart. You can fall in love with many homes, make it a smart purchase – make sure the numbers work, pay for solid inspections, and be able to walk away
5.They Only Think About the Mortgage Payment. That mortgage payment is only one expense of owning a home. You have utility costs, property taxes, school taxes, maintenance, etc..be sure to count those in because they can be significant! Check out the property taxes and other expenses early.
6. They Overlook “Grandma Homes.” An aesthetically “ugly” house with good bones, in a solid neighborhood is almost always a great investment. So what if it has shag carpet or an “ugly kitchen?” Buy the home, contract that out, and save yourself at least $100K off your purchase price. Even better? Do the work yourself over time & you can sell at a profit if or when you move.
7.They Shop For Others/Appearances. Don’t look for a place that will impress your friends, buy a house that works for you. It’s better to have a small yard for your pup, than a master bedroom that looks good on Instagram. You will appreciate that yard every day, and the “likes” aren’t worth it.