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The process of buying a home is riddled with obstacles. A lot of planning goes into buying a perfect home, and with the nature and the cost of the investment, the stakes are rather high. Therefore, stumbling upon these obstacles can cost you a lot of time and money, your new home, and your nerves.

That is why we’ve come up with a list of 5 mistakes first-time buyersshould keep an eye out on.

Don’t Expect to Negotiate a Lower Price after Making an Offer

In an attempt to get ahead of the competition, some buyers tend to give more than the asking price, only to try and negotiate a lower price during the escrow phase. The market is getting more and more competitive, so more often than not this is a bad strategy.

Chances are the seller already has a backup offer from someone who’s willing to pay the asking price and only waiting for you to drop out of the equation. If you try to lower the price after you’ve agreed on a larger one, the seller might offer the home to them and cut you out of the deal.

Trying Too Hard To Lower the Asking Price

Many buyers get into the market under the wrong assumption that the internet is always right. However, in the home market that’s often not the case. Buyers spend hours on research only to offer a price that the seller will not agree to.

Because the internet said so.

Sure, sometimes the risk pays off but offering a lower price leads to being thrown out of the race in most cases. That is why you should always consult an expert real estate agent.

Which leads us to the next item.

Not Hiring a Realtor

Another common mistake first-time buyers make is not hiring the right representation. Instead, buyers use the seller’s agent to represent them. This is not always a bad deal but only if the realtor has a good reputation and is trustworthy.

If not, the realtor might very well represent their own interest in this sale instead of the interest of you as a buyer. Finding a reputable realtor is all about asking for referrals, licenses, past clients and relevant experience, as thoroughly described here: http://www.homesalessandiego.com/blog/tips-choosing-realtor-in-san-diego/

Not Making an Offer Right Away!

One of the biggest mistakes a buyer can make is waiting too long to place a bid on a home they like. Since the rates are exponentially increasing and will continue to do so throughout the year, buyers should get into the market as early as possible or they might end up paying more for a home they like.

Don’t Be Stingy with Down Payment

If there’s one important lesson to learn about the real estate industry it’s the 2008 financial housing crisis. Back then unregulated private lenders gave mortgages to buyers who had little or no down payment to offer, as reported by Forbes. Being skimpy with the down payment results in increased interest payments.

And while some might be tempted by the prospect of having to invest less before buying a home only to pay more monthly, that’s exactly what lead to the 2008 crisis in the first place.

If you put a smaller down payment you will not only have a higher mortgage but less initial equity as well. Furthermore, you will also have to pay the mortgage insurance until you’ve paid off at least 20% of the home price. Therefore, if you have to sell your home for some reason you will owe more than your equity in the home you are selling.

If you need a reputable realtor in Southern California reach out to San Diego Home Sales at:

2683 Via De La Valle G-227, Del Mar, CA 92014, USA
858-205-9131

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