It’s very important to know about the most expensive home buyer debacles because you definitely don’t want to be caught off guard. The fact of the matter is, whether you’re a first time buyer or someone who has been through the process before, it’s all-too-easy to fall into a trap. When you are in the market to purchase a house, finding the “right” property might well blind you to a problem or two (or more). So, let’s take a quick look at some scenarios to avoid.
Top Home Buying Preparation Tips
The key to a successful home purchase begins with preparedness. So, the process typically starts many months or even a couple to a few years prior to the actual house-hunt. You should first get into the know about the local neighborhoods by exploring them periodically and speaking with homeowners. Saving a down payment is very important and doing your own preliminary due diligence will greatly help out.
“You’ve clicked through hundreds of online listings, compared floor plans and square footage, and are eager to jump-start your search. But before you even think of setting foot in an open house, make sure you get a copy of your credit report. The cleaner your credit report and the higher your credit score, the more likely you are to be pre-approved for a mortgage at a low interest rate.” —US News and World Report
You’ll not only need to set money aside for a down payment, but also for an earnest money deposit, inspections, closing costs, and moving expenses. Also, check your credit files at least one per year. (You can do this for free at Annual Credit Report.com, a site supplying information from all three bureaus by federal law.) Go over your reports and dispute any inaccuracies through snail mail. Don’t use the online forms because these are inadequate.
Most Expensive Home Buyer Debacles to Avoid
Now, as for the most costly situations home buyers avoid, we’ll start with FISBOs or For Sale By Owner properties. Put bluntly, these are potential nightmares because there’s no professional representation. Instead, look at houses listed by a licensed agent or broker. Here are some more expensive home buyer debacles to avoid, as well:
- Unpermitted work. When you need a newly renovated house, even if it’s just the kitchen and/or baths, it’s smart to ask about the quality. And, for documentation that it’s on the up-and-up. If the work was done without the necessary permits, it’s time to pass and keep on looking.
- Unexpected expenses. Although there are some expenses listed above, they don’t cover everything. For instance, you’ll also need a little money set aside for things like new door locks, window treatments, and lawn equipment. Miscellaneous items will add-up quickly and come at you at a fast pace.
- Post-closing possession. In the vast majority of cases, sellers will vacate the property prior to closing day. But, some sellers have a legitimate reason to stay in the house, past settlement day. It’s called post-closing possession or post-closing retention. And, if a seller rent-back is requested, make sure it’s all in writing.
- Unknown neighborhood issues. Don’t make the mistake of not learning about the neighborhood. It’s a big problem if you move in, only to find out there are unwelcome surprises.
If you are considering buying or selling a house in Orlando’s Hunter’s Creek, or another community, contact us for the latest market information. We are local and experienced in all facets of residential real estate, here to help you, when you need it.