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For most people, Purchasing a home is a big event in the life, so choosing the wrong property can have disastrous implications for their wallets and well-being. Still, many homeowners feel a strong sense of pride in putting their mark on the property, building equity and having a place to truly call their own. Whether you're a seasoned or first-time buyer, here are some homebuying mistakes to avoid.
1. Using the wrong real estate agent. Just because your friend's friend sold few properties doesn't mean he or she's the right agent for you. You need someone who does real estate full time and knows the local inventory. In some cities, “You can lose an offer if you're not responsive in a couple of hours”, so, you need someone who is good in communication and responsive. Request the agent's sales data, and find out how he or she communicates.
2. Shopping before you get preapproved. Before you get serious about buying real estate, find out how much loan/mortgage you qualify for and get an idea about the monthly installments. “If you fall in love [with a property], write that offer and then find out you can't afford it, it's an emotional roller coaster you can't afford,”.
3. Maxing out your spending power. Qualifying for 1 Crore or 2 Crore loan does not mean you should buy a Mansion. A Real Estate study says there are many people, especially first-time buyers, make this mistake. “It's wiser to be a little more conservative,”. Homeowners have additional expenses such as property taxes and maintenance fees renters do not, so some first-time buyers fail to budget for these extra costs and assume they can afford a monthly mortgage equivalent to the rent they paid. “If you buy into a [homeowners association], you don't know what their future plans are,”. If, for instance, a storm rips the roof off the clubhouse or the association decides to upgrade the common areas, you may get hit with a special assessment to cover those costs. For these unexpected situations, it's a good idea to keep a cash reserve on hand. Some dual-income couples choose to qualify based on just one income to give themselves a financial buffer.
4. Taking advice from outsiders. Listening to Parents, relatives or friends is good, However, who haven't bought property in the local market may not understand local pricing and market conditions.
5. Getting too attached to one property. In competitive markets, you may have to put in offers on several properties before one is accepted. Experts say that some buyers get so infatuated with one property that an unsuccessful offer hits them hard. “It's OK to feel anxious, but you need to be able to fall in and out of love during a home search,”. “If you find a home that you think is perfect for you and you don't get it, you can't stay down too long. You have to recognize that wasn't the house for you.”