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Common Mistakes of Home Buying

April 03, 2008  |  Difficulty: Easy

Cosy home
Home buying is a serious venture. One major mistake can really take a toll on your financial future. You should inform yourself of the common mistakes of home buying so that you can hopefully avoid them. The list below is based on tips given in the book titled “How to Buy a Home Without Getting Hammered”, by David Weekley.

The top 10 mistakes are as follows:
  1. Not Doing Your Homework. If you do not know the basic rules and regulations of home buying, you are leaving yourself open to predatory lenders, real estate agents and home sellers.
  2. Choosing Penny Pinching Over the “Right” Home. There is nothing wrong with finding a deal, but if you choose a home simply because it is cheap, you might be stuck with a property that you really don’t like. Choose a home that you are willing to live in for quite some time.
  3. Neglecting to Choose a Good Location. The house may be perfect, but if it is in a less than desirable location, it may prove to be a bad investment. Is your home close to your work place or will you have to spend a lot of money on gas? Is there a busy golf course or shopping center close by? Does this significantly increase noise and unwanted traffic? You must take these points, and similar ones, into account.
  4. You Judged a Book by Its Cover. Yes, an attractive house is desirable, but what is on the outside isn’t the most important factor. You must also take into account the space inside, is it suitable for your family needs?
  5. You Didn’t Evaluate If the House Will Be a Good Fit. Say that you may have to have your elderly parents live with you in the future, but you later realize that the steep stairs are not suitable for this upcoming need. You may have been better off with a home that has a one-floor plan. Taking into consideration your current, and possible future needs will help you find a home that will “work” best for your family.
  6. You Didn’t Have the Home Inspected. If you buy a home from a family who has inhabited it for years, you will need to have it inspected from top to bottom! There is no way that you would buy a used car without checking under the hood.  You should be even more motivated to give the house a formal look over with a property inspector before buying, especially since it is a great investment.
  7. You Overlooked the Builder’s Reputation. Every house is built by someone, right? But is it built well? It is your duty to find out! You should know if the builder is reliable or unreliable. You can search the Internet for more information about a particular builder, or you can simply talk to past customers. A faulty builder can mean much trouble for you in the future. You don’t want to waste your time and money on a property that wasn’t constructed properly.
  8. You’ve Lost Patience, and Thus, Money. Don’t make a snap decision. You should take time to do your homework and find the right home for your needs. Jumping into a situation without taking the adequate time to think it over could end with higher fees, rates and an increased chance of you making a bad choice.
  9. You Stall To Get Better Market Rates. If you seriously don’t think the time is right, you should wait to see how the market will swing. But too much procrastination can be harmful. If things seem to be stable, get a loan that is reasonable and within your means. You should buy that house if you have the funds and the chance.
  10. You Just Won’t Buy. But why not? If you have the funds and the chance, you should truly consider making the investment. If you choose to rent over home buying, you could miss out on very beneficial perks such as equity and tax deductions. If you are able to buy, it is usually best to just do it.

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