Mistakes Buyers Are Making Today

Buyer’s tend to face challenges in any market, and in today’s seller’s market, buyer’s are facing more than usual. With high mortgage rates, affordability, and lack of inventory, there are many more challenges faced, and ultimately more mistakes being made. Our best advice, take the time to find a trusted real estate agent with knowledge and experience in this type of market, like Jim Slater, and avoid the following pitfalls. 

Putting Off Pre-approval

Buyers tend to push off having a lender look at their finances, and just start looking. Well, with doing this, you don’t truly understand your budget and what you can afford. Meeting with a lender first can avoid being blindsighted after you find the home you are looking for. Make sure to get pre-approved BEFORE going on the hunt for your next home. As CNET explains:

“If you wait to get preapproved until the last minute, you might be scrambling to contact a lender and miss the opportunity to put a bid on a home.”

Holding Out for Perfection

Everyone has a list of must-haves and can’t-haves, and as the buyers grow into younger generations, the lists only are becoming more detailed and specific. Well, another list to add to your collection would be a compromise list, or a “could live with” list. Compromise is important in a market like today’s, and it’s best to come prepared to sacrifice a few things. As Investopedia puts it:

“When you expect to find the perfect home, you could prolong the homebuying process by holding out for something better. Or you could end up paying more for a home just because it meets all your needs.”

Buying More House Than You Can Afford

With prices and rates today, there’s no argument that buying a home today is expensive (much like everything else). It can be tempting to step out of your financial comfort zone to purchase a home but overextending your budget could have some consequences. It is best to pair with a real estate agent and mortgage lender to make sure you fully understand how mortgage rates will impact your monthly payments with each home you have interest in, and how they could fluctuate down the road as well. Many people fail to take in other expenses they have, or consider any emergency funds they may need. 

Not Working with a Real Estate Agent

It’s not a sales tactic, it’s the truth. If you are not knowledgeable about the home-buying process, you shouldn’t hesitate to hire an agent. Buying a home is much more than finding the home and bringing money to the table, it involves many steps, paperwork, negotiations, and more. Buying a home is stressful enough, especially in today’s market, don’t make the mistake of trying to tackle everything on your own. As CNET explains:

“Attempting to buy a home without a real estate agent makes the process more arduous than it needs to be. A real estate agent can give you professional legal guidance, market expertise and support, which will save you time, money and stress. They can also increase your chances of finding the right home so you don’t have to spend hours scouring the internet for listings.”  

Bottom Line

Mistakes in a buyer’s world can cost time, frustration, and money (lots of it sometimes). If you are looking to buy a home, contact Jim Slater today at 612-590-1802 to guide you through every step of the way.