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Common mistakes to avoid when buying a house

Family who just bought a house

Buying homes for sale in Pleasanton, CA and Dublin, CA? Avoid these common mistakes homebuyers make when entering the market.

Not working with a real estate expert

Many buyers decide not to hire a real estate agent thinking that they’ll be fine on their own – after all, there’s the internet, which provides plenty of information on the buying process.

But information is not quite the same as knowledge. Only an experienced agent will know how to integrate information and make sense of it in the context of past transactions they’ve handled.

Moreover, agent is more likely to have strong negotiation skills than the average home buyer. Having negotiated terms with countless sellers in the past, they’ll know when to be assertive, when to compromise, and when to walk away from the deal.

Not bringing proof of your finances

Whether you’re buying a starter home or a luxury property, you’ll need to present proof of your finances. For buyers in entry level and mid-range housing markets, this comes in the form of a pre-approval letter, which shows the seller that you’re serious about making a purchase and that you have the means to do so.

If you’re interested in a home that has already received multiple offers, showing up to the open house with a pre-approval letter can make all the difference. The seller is more likely to accept your offer if they know that you’re able to secure financing.

For high net worth buyers, sellers will want to see proof of income. Applying for a jumbo loan will require you to produce tax returns, assets, bank statements, and other financial documents. The amount of documentation required for jumbo loan applications is much higher than that of a typical loan, so start the process early.

Getting tunnel vision

Buying a home is often an emotional process, but some objectivity will go a long way in helping you find the right property. This is where you agent comes in. They will help you see the pros and cons of a property accurately, as well as suggest other listings that can accommodate your needs as a homeowner.

Falling in love with a property early on in the search might prevent you from keeping your options open. It can also force you to pay more money for the property than you were initially willing to. Your agent will keep you grounded – follow their guidance and keep an open mind.

Rushing the process

Some buyers have unrealistic expectations about the process, thinking that they will be able to close the sale and move into their new home in a matter of weeks. This could be because they’ve already sold their previous homes and are currently living out of hotels or with relatives, and are therefore eager to have their own space.

However, Bankrate states that the buying process could take up to several months. And before you even make an offer, you’ll spend a few more months getting ready to secure financing, attending open houses, and negotiating the purchase contract.

That’s why patience is the key to a smooth and stress-free transaction. Rushing the process might cause you to make more concessions than is fair during negotiations, or make errors and miss important details when filing documents. These mistakes can either slow down the process or shortchange you as a buyer.

Get professional real estate guidance in the Tri Valley Area. Get in touch with me, Alice Chen, for honesty and transparency during the buying process. Contact me here or call 925.216.0676 to get started.