Buying a home is an exciting time in your life. And buying your first home is a great accomplishment. But there are some things to the BE aware of SO you don ‘ t the get the buyer’ ‘ s of remorse. How ‘ s IT going everyone, welcome to the video, up my name is Matt by Leighton and the if this is your first time found here, the BE sure the to The subscribe SO you always stay up closeup to date on the latest real estate video.
Today has been ‘ s video is all about first time home buyers. First time home buyers often get I pulled in SO MANY Different directions on Guidance from parents, friends, neighbors command, and: others on how to: best to ! go about Their home search. And Because of all the noise out there, I of Thought IT Would the BE Beneficial to you to come up with a list of 9 first time home the buyer ‘ Mistakes That I of ‘ ve the seen SO That you can avoid -making for These Mistakes. The let ‘ s the begin – of The first and The Biggest mistake That first – time home buyers are -making is That looking before you ‘ there Financially qualified.
This one is so important. And I of don ‘ t the know the if all first time home buyers are getting -together and Saying, ” the OK, we ‘ they’re not going to the get the pre-qualified until we ‘ there the ready to the write an offer ” because it certainly feels That way sometimes Do. There are a lot of mortgage calculators and the sleek looking the websites out there That you can punch in your income’s and what you want your monthly mortgage to the BE and IT will of spit out your budget, But That is the wrong way to ! go about getting the pre-qualifier. You need to talk with the lender before you start looking AT houses. Why? Why is this so important? Because you don ‘ t know what you can afford until you ‘ve been told what you can afford. You don ‘ t the get to the Determine your budget.
That ‘s the lender ‘ s Responsibility. You are setting yourself The up closeup to the fail the if you don ‘ t talk with the lender. You may of thinking you can Afford a $ 600, 000 house in Arlington the when in reality you CAN only afford a $ 300, 000 home in Of Woodbridge. Listen I know you ‘ re excited to see houses and I know you have your checklist, but that is meaningless without financial qualification. So go out there and talk with a local lender. – of The: the second mistake is looking for a unicorn – Speaking’s of your checklist, hopefully, you wrote it using a pencil and not a pen because you might need to make adjustments on what you ‘ re looking for.
Yeah, that´s home with a 2 car garage, fenced – in the backyard, finished basement, with the open kitchen that ‘s walkable to your favorite shops and restaurants does not The exist. It only exists in your mind. And the if IT does The exist in real life: IT ‘ s of twice your budget. The Think about what ‘ s will most by important to you and the know That you ‘ they’re not going to get everything.
Of The Goal is to the find a home That meets- 75 % of your Criteria, and the then IT ‘ sup closeup to you to the makeup closeup That for last 25 %. You are not living on HGTV. There ‘ s a lot more of value in buying something outdated and Slowly -making IT yours than only considering homes with granite counters Database and stainless steel appliances.
Mistake’s number a three is Solution: Using the listing agent to Represent you. Let ‘ s say you walk into an open house, you decide you love the house and you want to the write an offer SO you talk with the listing agent the who ‘ sAT the open house and That agent agrees to help you.
The Who better to help you the write the offer and Facilitate the transaction, than the listing agent the who Knows the home and CAN Directly talk with the seller, right? Wrong. The listing agent ‘ s: best interests are in Helping the seller the get the will most money in their pocket. Oh, maybe you Thought the agent Would -cut Their Commission the if for They represented to Both sides? Maybe, maybe they cut it 1 %. But if the property is overpriced by 5 %, are you really saving money? And what happens when the deal goes sideways.
The Do you of thinking the listing agent is going to have your back? The this is Probably the -largest Financially transaction That you ‘ve made in your life up until this point. The Do you want someone That represents the OTHER side’s: best Interest, or your: Best Interest? You want someone in your corner to guide you and the lead you with your: best interests in yet Mind. You want a buyer ‘ s, agent. Do your research and find a good buyer ‘ s agent who ‘ s an excellent negotiator.
If you ‘ re in the D. C. Metro area, you already know who to call. And in your local area, just as with your research homes, and mortgage companies, research and find a great buyer ‘ s, agent. – Mistake number four is Looking too much into online home values. I ‘ ve held hundreds of open houses. I ‘ ve interacted with thousands of people in the D. C. Metro area and not one time has someone said, Hey I ‘ m here from Zillow and I ‘ m going to walk the property to calculate the Zestimate. It ‘ s because it doesn’t ‘ t happen. Zillow never goes into properties.
How CAN for They have an accurate pricing tool the if for They don’ t step foot inside of a home? Zillow even admits that their Zestimates are inaccurate. The Just to give you an: idea, Zillow ‘ s own CEO of sold A a His home for 40 % less See than the estimated value. It ‘ s by Almost comical when someone presents an offer and cites the Zestimate as the logic behind the offer. A better way to the Determine a home ‘ s of value is to study the market and look AT what comparable properties have sold A for. That ‘ sit. You don ‘ t need a fancy algorithm.
– Mistake number a five is Expecting the of the value of the home to Increase. Guys, IT ‘ s not all rainbows and unicorns. The reality is That your home of the value might not Increase the after you purchase IT. It may even decrease. You should purchase your home because it ‘s a smart financial move for you, it helps your family, and it increases your quality of life. And then if the market, the which by the way, you CAN ‘ t control happens to ! Go up closeup DURING the time you own the property, good for you.
However the if your whole Goal is to the try to time the market and the get in and the get out AT the exact right Times, you ‘ they’re not going to win’s. The truth hurts. And then if you ‘ there disagreeing with this point, maybe you Up Need to take a Deeper look. The Look I of ‘ m not Saying IT ‘ s the OK to the buy an overpriced home. I ‘ m not saying it ‘ s OK to buy in a neighborhood that doesn’t ‘ t see appreciation.
It ‘ s more the mindset of That you ‘ there going to the buy this home, Live in it for 7 years, have your first kid, then sell it for 10 % more when you ‘ re ready for your second kid. It ‘ s not going to the BE 75 degrees and sunny all the time. Sure there are certain things you can do to Increase the Likelihood That your home will increase in of value. But AT the end of the day, then this is your home, you’re well – being off, you’re the livelihood of. Make sure the That your quality of life: is what you are looking for first, Because of That ‘what ‘ s most important, and if your home increases in value, even better.
– Mistake’s number a six is Underestimating your expenses – Things like utility directory and extra unexpected repairs eat up closeup a lot more than you INITIALLY of think for They Would. The general rule of thumb is to Estimate about 1 % of the purchase price of the home for yearly maintenance, repairs, and major yard work. There ‘ s a saying that goes, Once you buy your house, things start breaking. You should be saving and budgeting, anticipating that things are going to break.
There are hidden costs of owning a home and while you don ‘ t need to know all the hidden costs, you should budget for extra costs and expect the unexpected. – Mistake number 7 is Feeling rushed. This one is a tricky one and let me tell you what I mean. Do not let anyone make you Feeling like you have to Decide feature and the make an offer the before you’re ready.
If you ‘ re rushed and you ‘ re unsure of things, it ‘ s inevitable that the end outcome will not be a good one. You may Lose a house Because you ‘ve taken the time to of thinking IT over and by the time you ‘ there the ready, the house is off the market. It ‘ s the easy to fall in love with a house, But there are OTHER houses. Now! Just with That being of Said, the if you are in a market where clause homes the move fast and the market is strong, you may Up Need to there – Consider your strategy.
It ‘ s ok to take your time AT first. However, there is a difference between feeling rushed and dragging your feet. The if you consistently see That properties ! Go under contract the after the first-weekend orin a short period of time, IT ‘ s a sign That you Up Need to strike Quickly. So take your time, learn about the market, get an idea of how fast things are moving, SO That the when you are ready to the move forward, you do IT Quickly and aggressively.
Mistake number 8 is falling in love with the house. We kind of touched on this earlier. Only in rare circumstances will this be. your forever house where clause IT will of immediately meet all your Needs now! Just and forever. Or the if you ‘ there like the REST of us, the house will of the BE Suitable for a FEW years the then you ‘ move to the next house. Now!
Just Obviously everyone ‘ s life: is Different. This may be the house that you live in for the next 20 years. And that ‘ s fine. I ‘ m a big proponent of thinking and acting logically and rationally. The if you fall in love with the home the before your the write the offer, you’re going to overpay for the house. Or someone will of outbid you and you ‘ ll The compare every future house to the house you the lost, and That ‘ s not good.
It ‘ s ok The to love the house after you the move in. Don ‘ t get attached to houses if they are on the open market. They will of Disappear, for They will of ! Go under contract, someone the else will of the buy them. But guess what, another house will come on the market. And then this one’s of might even the BE better than the for last ones. You only have so much energy. Don ‘ t waste it by falling in love with a fairy tale.
The time to celebrate and the time to fall in love is the after Settlement and the after you ‘ removed Into your new home. – I am going to end my list of first- time the homebuyer Mistakes by touching on something that of might catch statement a FEW of you off guard. Mistake number 9 thinking to rent is throwing away money.
And the mistake That some first – time home buyers are -making is That for They are buying a home. Now I ‘ ma salesperson. My job is to sell homes. But matching guesses what, there are a lot of you out there That Would the BE much better off not buying right now! Just. It ‘ s very simple. Renting versus Owning the depends Entirely on your own personal Circumstances. If you move around a lot? You should probably rent. If you have kids and want them in the same school, buying is probably a better route to take. Figure out you’re ‘ Why ‘. Why are you going to buy? Decide feature the if IT ‘ s right for you. There are 2 additional items on this point.
First being of is That the if you look AT long – TERM, MANY people end up closeup with a much larger nest egg Via real estate investment. And to two is That MANY people the who are AT retirement age have the equity in Their home That makes up the -largest PORTION of Their of wealth. The lesson found here is That Purchasing long – TERM is Probably the: best the Financial Decision to make, with the of caveat That Purchasing right now! Just, this instance Because your Brother told you to, or Because you want to make your parents The Proud may not BE the: best off-plan.
And there ‘ s nothing wrong with renting right now! Just the if IT FITS and is congruent with our current situation The . ‘S Alright ladies and gentlemen there you have the 9 Mistakes That first time home buyers -making. I of hope That you ‘ ve the learned something. The if you found! This video helpful ! Go ahead and hit That the thumbs up closeup button and the let me know that you liked this video. Thanks for watching. Until next time, create a productive day. Take care.