What NOT to Do When Buying a House

Purchasing a home is one of the largest financial decisions that a family can make. Because of the size of the transaction, there are many complicated decisions that surround the purchase of a home, and many myths that inexperienced buyers may be prone to believe. Here are a few common myths and the truth behind them, according to Realtor.com

1. Wait until spring

A thorough market analysis shows that the spring and summer seasons are the busiest in volume of house sales. For this reason, many buyers believe they must wait until spring or summer to look for a house so they will have a better chance of finding the best home at the best price.

The reality is that while there are more homes on the market in the spring and summer, there is also more competition for the homes. In other words, the busy season means more sellers AND buyers. Holding fast to the “wait until spring” rule may lead buyers to pass up a perfect fit in the winter or fall months.

Instead, buy when you find the right property that will meet your needs for today — and the next five to 10 years.”

Realtor.com

2. Wait for market prices to drop

Buyers may want to wait for the market to dip before they buy and continue to rent until the market changes. But the truth is that while home prices are high, rent is likely to be high as well, and nothing is saved by waiting to start building equity in a home.

Even when the market dips, buying a home is an incredibly large purchase and buyers must be certain they can afford a down payment, property taxes, and monthly mortgage payments. Rather than waiting for market prices to drop while paying monthly rent, buyers should wait until they find the right house at a price they can afford and then BUY IT.

3. Make a low offer so you have room to negotiate

This one makes sense in most situations. Offer lower than you’re willing to pay so when the seller makes a counter-offer, you’re still within budget.

But when it comes to buying a home, this can be a risky strategy, especially if you like the house. Not only does the seller have other offers from competing (and motivated) buyers, but they may want to close quickly and will not humor an unnecessary counter-offer. Instead, research houses in the area and base your offer on similar homes in the area.

It is important to know the local market in the area you wish to buy. How much are comparable homes selling for? How long do homes usually stay on the market? Be sure to find a real estate professional who can help you answer these and other questions.