It happens every year, home buyers regret their purchase after the
house becomes theirs. Regrets are often a result of listening to
poor advice from friends, family members and real estate pros, but
sometimes buyers get so emotionally attached to a property that they
overlook its faults and rush into a purchase. Take a bit of time to
learn which mistakes are most common--it will help you make sure
that your home buying experience is a good one.
1. Not Performing Inspections
Don't sign away your rights to inspect
your new home prior to closing, even if you know the seller won't
agree to make repairs. Inspection contingencies should always give
you the option of backing out of a contract if you find that the
house needs more repairs than you are willing to deal with. A whole
house inspection is important, but so are checks for radon gas
levels, pests, fireplaces, septic systems, private wells, molds and
other potential problems.
2. Neglecting to Plan for the Future
Will you live in the house for the rest of
your life? Probably not, so you'll want the property to appeal to
potential buyers. Buying a home with good resale value sometimes
takes a little patience and research, but you'll love the payback
when it sells quickly and puts extra money in your bank account. A
low price isn't a "deal" if it buys a house you'll be stuck with for
a very long time.
3. Forgetting to Read the Restrictive
Covenants
You've moved in to your new house and are
clearing a spot for a second garage. And it's the perfect time to
take down those pine trees that drip sap all over the roof. Have you
studied your deed restrictions or restrictive covenants to make sure
you can make the changes? Restrictions dictate exactly what you can
and cannot do on the land. You might be surprised how many people
buy land and houses without bothering to determine if they can live
with the restrictions.
4. Neglecting to Get All Agreements in
Writing
Hand-shake agreements sometimes work out
just fine, but it's risky to depend on verbal agreements for any
portion of your home buying contract. Verbal agreements cannot be
enforced and unless terms are in writing there's no guarantee that
you and the person you are working with will have the same memory
and interpretation of what was agreed to. Put every aspect of your
contact in writing and make sure that everyone involved signs the
agreement.
5. Not Taking a Final Walk-Through Before
Closing
How would you like to walk into your new
home and find out that the sellers damaged every piece of doorway
moulding when they removed bulky furniture? Or find a huge stain on
the wood floor that had been hidden by a bed? You want to find
damage before money changes hands, because it'll sure be
more difficult to recover funds to make repairs after the papers are
signed. Do a final walk-through after the house is vacant, on the
day of closing if possible, and don't let anyone talk you out of it.
6. Taking on Too Much Debt
Many buyers are using no-down or
low-downpayment loans to purchase real estate. Even more are
increasing debt by using loans to tap into their equity--the
difference between what's owed on the home and what it's worth. If
your equity is low, and the local real estate bubble bursts, you
might owe more for the house than it's worth. That's not a problem
if you can stay put until prices come back up, but an unexpected
move could force you to find extra money to pay off the loan when
you sell.
