4 Home Buying Mistakes to Avoid in 2020
Mistake #1 - Procrastinate until things normalize.
If you need to buy a home this year, you need to be on the ball right now. Why? Because once things normalize, there may be record numbers of sales, which means a lot more competition for buyers. Competition for buyers means there are a lot of other people who are hungry to buy a new home, and when the quantity of buyers increases, your chances of getting the property decreases. If you hope to move this year, stop procrastinating; speak over video chat with a realtor and a financial lender, get pre-approved and get your plan in motion. Do this, and you’ll already be ahead of the competition.
Mistake #2 - Scrapping your plan to move this year.
A lot of people feel like the whole year is a write-off. Not only is this untrue, but it is a terrible mentality. The truth is, you don’t need to change your plan to move this year. What you do need is to take a proactive approach, as mentioned above. Start looking for your new home now, and if you happen to get what you want this year, then that’s a win for you. With interest rates being so low right now and the lack of competition, this is actually not a bad time to buy.
Mistake #3 - Avoiding a Home Inspection
If you’re not procrastinating and really want to jump into buying a new home and take advantage of the interest rates and the lack of competition, make sure you aren’t too hasty by foregoing a home inspection. I say this over and over to my clients because you really do need a home inspection to help protect yourself. Home inspections help prevent unpleasant surprises for buyers. They identify issues and provide solutions to problems. If they find issues and you still are interested in the home, you may be able to negotiate a lower price for the home.
Mistake #4 - Failing to Budget.
When you budget, you look at how much income is coming in versus the amount going toward expenses. Failure to budget properly is often the result of a lack of goals, unrealistic plans, detrimental spending styles, conflicts with your lifestyle, and the ease of spending with cards or online. Homebuyers should take a detailed look at their living expenses and see what effect adding a new home into the mix would have on their budget. Getting pre-approved for a mortgage is a great way to figure out what you can afford. Even so, people often try to buy the highest-priced home their budget will allow. Buying a less expensive home might allow you to save more money every month, or have more financial freedom.
