TOP-7 Mistake To Avoid Making

Buying a house is an all-consuming endeavor that requires significant mental acuity. The decision to buy your dream home should not be taken lightly, and there are many traps set for unsuspecting homeowners-to-be by the real estate market's clever tactics.

Here’s what you need to know before taking on this life changing purchase:

1. Underestimating (or forgetting) the added costs

Buying a house entails a list of expenses other than the price of the house itself. There are loan application costs, mortgage insurance, and closing costs, to name just a few. You may also need to spend on several renovations once you move in. One tip: a fourth (or better, half) of the price of the house should be stashed in your account in order to cover for these expenses.

2. Not getting a buyer's agent

Getting an agent who will represent you as a buyer could give a more critical eye to deals and transactions, as opposed to negotiating solely with a seller’s agent who’s legally obligated to work for their client’s interests.

3. Falling prey to “too good to be true” home values

These advertised low rates are all over the internet, and online home valuation sites can set unrealistic payment expectations. It’s good to have an experienced real estate agent explain the rationale on market prices through a conducted comparative market analysis based on internal industry data.

4. Not doing research on the neighborhood

Finding the perfect house is a lot more difficult than many people think. Sure, it needs to be within your budget and in close proximity to good schools or work, but also consider how easy that commute will be from day-to-day--is there an earthquake fault line near by? A high crime rate around where you live has been shown to cause stress and mental health issues for residents like depression so weigh this when looking at home locations as well!

5. Going house hunting without a pre-approved mortgage

Getting pre-approved for a mortgage plan requires a professional evaluation of your credit report and credit score, which puts you in place in terms of your finances: how much could be lent to you, and how much you could afford to regularly pay.

6. Skipping home inspection

A house could look like it’s in top shape but it’s not impossible that it has some share of defects. A certified home inspector with a trained eye can spot problems which you could miss like termite infestations and gas leaks. If significant issues are detected, you may negotiate with the buyer to lower the price.

7. Failing to see it as a long-term investment

Owning a home is one of the biggest decisions you will make. Owning property provides stability and security, but there are many factors to consider before purchasing your dream house. Consider if this location can be maintained for more than three years with both good work and family life in that neighborhood? If not, don't waste time or money!