Common Home Buyer Oversights
Purchasing a new home is like buying a new car. Both are large ticket items and typically create a very exciting time of your life. However, as a real estate purchase will likely be one of the most expensive things you will buy in your lifetime, it is crucial that you don’t overlook some very important steps before you submit any offers to purchase. Here are some common oversights that you want to be sure you don’t fall victim to.
“People focus so much on mortgage payments and closing costs,” says Brendon DeSimone, author of “Next Generation Real Estate. “What they don’t realize, until after the fact, is that there are expenses like oil or propane and landscaping that are built into home ownership.”
Buyers should forecast all expenses that go into caring for the home. Sometimes operating costs are made available by the seller which can help you budget. Some finance experts also recommend that you set aside 1% of the home’s value per year for repairs and maintenance.
Failing to Consider Resale Value
Not many buyers stay in their homes for decades anymore. When purchasing your home, consult with your realtor about neighborhood trends and comps. This can help you see how things are selling and what this particular home may sell for in years to come. The home may be a perfect fit for you today, but if your situation changes you want to be sure you can sell when that time comes.
Not Researching the Neighborhood
Aside from making sure that the location works for schools, proximity to work and necessary services, it is a good idea to go above and beyond. It is recommended that you visit the neighborhood many times during different times of day. It is also wise to talk to the neighbors to get an accurate feel for the area.
Failing to Research the Homeowners Association
“Never close on a home without doing serious due diligence on the homeowners association,” says DeSimone. Many HOAs can be well structured and supportive, but there have been reports of a few cases where homeowners have not agreed on issues. Also, you will want to know if there are a lot of delinquent homeowners because “if there is an upcoming assessment, or there are delinquent homeowners, the HOA and you will have to cough up the money to cover it,” DeSimone says.