Common Home Buyers Traps
Buying a home is a major investment which requires serious legal maneuvering in order to seal a deal. However, every year, hundreds of homebuyers end up paying more than they should because they fall prey to several common mistakes that trap them into either losing their dream home to another buyer, paying too much for the home they want or, worse, buying the wrong home for their needs. Luckily, Solly Assa, founder, and developer of Assa Properties, a New York City-based real estate company has a systemized approach that can help you steer clear of these common traps, allowing you to not only cut costs but also buy the home that suits you best. In this article, Solly discusses some of the most common and costly homebuyer traps, points out how to identify them, and what you can do to avoid them.
There are several mistakes that are repeated regularly. The experience of Assa, real estate agents, lawyers, and judges show that the purchase of a real estate property should never be rushed. Instead, the property should be thoroughly inspected, both documentation wise and on the spot. So, make sure you have everything arranged before you commit to the agreed price.
Real estate is most often bought either for a lifetime or for a longer period, which means you need to choose both heart and mind. Before searching, Assa recommends to think well how you will close your financial structure, and more importantly, to inquire the expenses for monthly directing. Infrastructure is also important, especially if you use public transport, or if you need a school or kindergarten. When choosing a neighborhood, consider the distance from work, your parents, or friends.
Make a detailed inspection of the property you are buying. Sometimes it's good to have an expert on the spot. A professional home inspector can point out the major flaws that might slip through your fingers. It is important to know whether the roof is leaking, whether there is moisture, what is the quality of the foundation, the installation, the condition of the exterior, the chimneys...
One of the most common mistakes among homebuyers is not doing proper research and preparation. Understanding your family’s needs and finances is of utmost importance. In order to avoid any mistakes, Solly Assa strongly recommends homebuyers to analyze their assets, sort out debts and get pre-approved for finance before jumping into the house hunt. Learn more about the neighborhood, the quality of schools, the crime level, transport and possibly upcoming zoning issues.
To put you in the best-negotiating position, it’s critical to have your loan pre-approved (not just pre-qualified) before going house hunting. Find out how much house you can afford – but you can’t simply go to a bank’s Internet site, use the calculators to see how much you can borrow and assume you’ll get a loan. There’s a big difference between what the banks indicate they can lend you and what they actually will. It’s important to pick your finance package carefully. Don’t just go to one bank; instead, use an independent finance broker who has access to a range of lenders and finance products.
When you’re looking for a home that fits your budget, it is common to find the more expensive properties looking much more appealing. However, buying a home that’s way out of your price range could wreck your finances in the future. It is human nature for us to want a little more than we can afford, but don’t be tempted because the bank has offered you a borrowing limit for good reasons. Namely, house loans are based on one’s ability to repay the loan, and spending more than you can afford will leave you exposed to potential financial distress.