One of the aspects of my real estate career that I love is working with first-time home buyers here in Naples. It is incredibly rewarding to watch them sign the final document at the closing table and get handed the keys to their new home.
Unfortunately, there are a number of mistakes buyers consistently make, which is why it is absolutely necessary to have the right agent when purchasing real estate.
- Not speaking to a local lender before going out to see property.
I see this frequently. Buyers assume a certain price is in their budget and they venture off to see open houses or they have an unexperienced agent open doors to houses they cannot afford.Obtaining a pre-approval letter is absolutely critical *before* stepping foot in your first home. What if you are approved for a mortgage that is far less than you expected? All of those homes you’ve fallen in love with are now out of reach.
- Treating the home search as an emotional decision.
I know this is extremely hard to do, but buying a home needs to be treated as a business decision. I often work with buyers that are approved for plenty of money but have a strict amount that they want to stay under. What inevitably happens is that they see a home far above the number that they wanted to stay at but emotions get in the way. “I know it is *way* above what we said we wanted to spend but I love it.” Pick a purchase price that translates into a comfortable monthly payment and do everything you can to honor your own decision.
- Using a newly licensed friend (or worse, a stranger) as your Realtor®.
Buyers are *crazy* to do this in my opinion. Buying a home will be the largest financial transaction you make, so why would you trust someone without any experience? I know that an agent would be upset to have a friend choose someone else, yet a true friend with the buyer’s best interests in mind can shake it off. It may be your first time buying a home, but it shouldn’t be your Realtor’s first time too.
- Not properly budgeting for expenses that arise.
Buying a home comes with its fair share of costs other than the deposit. Appraisals, taxes, inspections, surveys and the general moving costs add up! If you are unsure if you have enough money to buy, [email me](mailto:firstname.lastname@example.org) and let’s make sure you’re in a good position to buy. **Hint:** I can get the seller to pay the buyer’s closing costs!
- Not working with a local lender.
Counties have their own grants and programs to help first-time buyers and local lenders will know about those programs. Many lenders work by you phoning into a call center and speaking to whomever answers. Avoid this! Ask me who I recommend for a mortgage and I will give you the answers you need.
Have you made any mistakes thus far? Share with us in the comments!
Chances are, you’re in the process of buying if you’re reading this. I would love to earn the position as your trusted advisor. Please reach out by phone, text or email and let’s discuss your very important goals.