6 Pitfalls to Avoid While Purchasing Your Dream Home
Home buying is not as simple as visiting the market and getting a product of your choice in no time. Purchasing a house is indeed a stressful event with several things to be considered and verified. Lots of complex terminologies are involved while dealing with any real estate property transaction. At times, the home buyers make some mistakes that put them in lot of trouble in future. This is why you should be aware of the prominent mistakes that you need to avoid while buying a home. Do not let your enthusiasm to make a wrong judgment. Here are some things that need to be avoided by following right measures while purchasing a home.
1. Dealing with a wrong agent: All the agents present in real estate market are not true and honest. Some listing agents simply prefer to work for financial interests of the home sellers and get the highest possible price for selling a house, without giving any preference to the benefits of home buyer. They do not make the buyer aware of the prevailing faults in the house and try to sell it at maximum possible price. Hence, a home buyer should take assistance of some efficient appraisal service to find fair price of the desired house.
2. Online shopping for a home: Although shopping for your dream home online can be fun and comfort yet it is not free from pitfalls and inefficiencies. If you have some real estate market experience then it will prove beneficial when purchasing your choice of house. It is advisable to visit and observe 20 homes before buying one. This is so, because nothing can be more helpful than knowing what is present there in the market and what exactly your choices are.
3. Bidding blindly: Most of the times, bidders ignore recent sales activities of various competitive homes and end up paying a steep price for desired home due to their own negligence. The listing prices do not indicate the real value of a house. Even the seller’s agents work more on acquiring the highest cost in favor of the home seller and do not work on to sell it at the lowest rate favoring the home buyer. It is advisable to review competitive market analysis. Selling prices of identical homes can be regarded as the most reliable indicator to know true value of a house. A competitive market analysis reveals current sales rates of various competitive properties that fall in same locality. Residential appraisal by some renowned appraisers can prove reliable and beneficial in knowing the real cost of your desired home. Do not rely on gossips.
4. Not being aware of total financial obligation: At times, an average citizen prefers to spend more time in determining the cost of basic belongings than knowing the actual cost of his choice of new home. If you are not aware of how many dollars you need to shell out for obtaining your desired home, purchasing house can prove an expensive mistake for you. Hence, first of all, know how much finances you can afford to buy a new home. Try to obtain an approximate cost of your choice of residence. Thorough cost estimation will comprise all real estate related expenditures such as inspection fees, commissions, home warranty premium, title insurance premiums, lender charges, homeowner’s insurance and many other aspects. If the detail cost estimation fits in your budget then only proceed ahead to purchase the particular house.
5. Skipping a professional valuation: No home is perfect. Do not ignore serious defects and deficiencies that might not be noticed by an inexperienced eye. Professional appraisers play a crucial role in thoroughly inspecting a house thereby, locating and counting the existing faults and deficiencies present in it while deciding its real cost. They make use of modern techniques and equipments to carry our valuation. Real estate valuation will help you to understand the physical condition of the concerned home and provide you a fair and accurate market value of it. By knowing the short-comings, potential repairs and faults before you purchase the home, you can give a thought whether to go for buying the specific house or not.
6. Unreasonable penalties in event of cancellation of agreement: You even need to be aware of the possible penalties and rates that are associated with the cancellation of the purchase agreement while buying a home. The penalties vary as per the structure and political agreement of the professionals that are involved. However, it is better to be aware of penalties well in advance if the deal happens to break anytime during the transaction is in progress.
If you try to avoid these 6 pitfalls while purchasing a new home, you are sure to get a good house at a fair market rate.
1. Dealing with a wrong agent: All the agents present in real estate market are not true and honest. Some listing agents simply prefer to work for financial interests of the home sellers and get the highest possible price for selling a house, without giving any preference to the benefits of home buyer. They do not make the buyer aware of the prevailing faults in the house and try to sell it at maximum possible price. Hence, a home buyer should take assistance of some efficient appraisal service to find fair price of the desired house.
2. Online shopping for a home: Although shopping for your dream home online can be fun and comfort yet it is not free from pitfalls and inefficiencies. If you have some real estate market experience then it will prove beneficial when purchasing your choice of house. It is advisable to visit and observe 20 homes before buying one. This is so, because nothing can be more helpful than knowing what is present there in the market and what exactly your choices are.
3. Bidding blindly: Most of the times, bidders ignore recent sales activities of various competitive homes and end up paying a steep price for desired home due to their own negligence. The listing prices do not indicate the real value of a house. Even the seller’s agents work more on acquiring the highest cost in favor of the home seller and do not work on to sell it at the lowest rate favoring the home buyer. It is advisable to review competitive market analysis. Selling prices of identical homes can be regarded as the most reliable indicator to know true value of a house. A competitive market analysis reveals current sales rates of various competitive properties that fall in same locality. Residential appraisal by some renowned appraisers can prove reliable and beneficial in knowing the real cost of your desired home. Do not rely on gossips.
4. Not being aware of total financial obligation: At times, an average citizen prefers to spend more time in determining the cost of basic belongings than knowing the actual cost of his choice of new home. If you are not aware of how many dollars you need to shell out for obtaining your desired home, purchasing house can prove an expensive mistake for you. Hence, first of all, know how much finances you can afford to buy a new home. Try to obtain an approximate cost of your choice of residence. Thorough cost estimation will comprise all real estate related expenditures such as inspection fees, commissions, home warranty premium, title insurance premiums, lender charges, homeowner’s insurance and many other aspects. If the detail cost estimation fits in your budget then only proceed ahead to purchase the particular house.
5. Skipping a professional valuation: No home is perfect. Do not ignore serious defects and deficiencies that might not be noticed by an inexperienced eye. Professional appraisers play a crucial role in thoroughly inspecting a house thereby, locating and counting the existing faults and deficiencies present in it while deciding its real cost. They make use of modern techniques and equipments to carry our valuation. Real estate valuation will help you to understand the physical condition of the concerned home and provide you a fair and accurate market value of it. By knowing the short-comings, potential repairs and faults before you purchase the home, you can give a thought whether to go for buying the specific house or not.
6. Unreasonable penalties in event of cancellation of agreement: You even need to be aware of the possible penalties and rates that are associated with the cancellation of the purchase agreement while buying a home. The penalties vary as per the structure and political agreement of the professionals that are involved. However, it is better to be aware of penalties well in advance if the deal happens to break anytime during the transaction is in progress.
If you try to avoid these 6 pitfalls while purchasing a new home, you are sure to get a good house at a fair market rate.