Now that you’ve gone through the initial steps of preparing to buy a home, it’s time to start going to open houses, searching MLS listings, and putting in offers! However, as you’re inspecting paint colors, layouts, landscaping, and reports from the home inspector, the real estate agents at Twin City Real Estate Services want to help you out. After years of experience in the Minneapolis real estate industry, we have seen countless potential homebuyers miss out on fantastic opportunities due to a few mistakes.
We understand that buying a home is exciting, you want to close and move in as quickly as possible, and into a home that you absolutely love, but there are certain things that can slow down the process or even cause it to come to a complete halt. With our expertise and guidance, we can assure you that you will find the perfect home, one that is within your budget and has all of the finishings you have on your list.
Homeowner Mistakes You Can Avoid
Forgetting Miscellaneous Expenses and Costs
You have your down payment and you’re preapproved so you can estimate how much your monthly mortgage payment will be. If you think that these are all of the associated costs when it comes to buying a home, you have a lot to learn. Here are some additional costs that are a part of the home buying process.
- Loan application fees
- Mortgage insurance
- Closing costs
- Property taxes
- Homeowners insurance
- Homeowners association fees
- Appliances and furniture
- Repair and maintenance (inside and out)
- Utilities and services
- Commission fees
- Moving costs
Being Too Picky
If you are set on having a three-bedroom house with 2.5 baths, that’s one thing, but if you’re set on having a kitchen with a south-facing window, custom cabinets, hardwood floors, an upstairs balcony that overlooks the entryway, a three-car garage, a finished basement, a fireplace, a master suite with a soaker tub, and within your budget, it will be hard for your real estate agent to find everything you want. Make a list of things you need, and make a list of things you want and try to stick with these lists as much as possible.
Becoming Emotionally Invested
This one is all too common, and it’s understandable. When you walk into a home and you instantly feel that “at home” feeling, it has everything you want and it’s within your budget, it’s incredibly easy to fall in love and get your hopes up. But with an ever-changing housing market, when competition for a single home can be fierce, it’s best to try not becoming too emotionally invested until the seller accepts your offer, and maybe not even until you’re at the closing table. As real estate agents, we certainly hope that you do purchase that first home you fall in love with, but in reality, it doesn’t always work that way.
Not Selecting the Right Clauses
There are a lot of contracts throughout the home buying process, so it’s important to understand what they include — and don’t include. There are a variety of real estate contract clauses that can protect both the home buyer and seller. If you have questions about any of these clauses, ask one of our real estate agents.
- Inclusions and exclusions
- Earnest money
- “Weasel” clause
- Protection clauses
- Inspection contingencies
Skipping the Inspection
Not only should you have a home inspection completed, it should also be done by a professional who was not hired by the seller’s agent. A professional inspector will look at the foundation of the home, the roof, attic, basement, electrical and plumbing systems, and more. When issues are found, you can either back out of your offer or you can negotiate repairs into the contract. But if you skip the inspection, purchase the home, and then find out that it needs a new roof, you will be stuck with it.
Not Looking at the Neighborhood
Buying a home without looking at the surrounding neighborhood and its amenities is like driving a car without going for a test drive. Look into the area’s schools, grocery stores, restaurants, look at the crime rate, look at the condition of other homes in the area, and if possible, look into where the neighborhood is heading. If the home backs up to a field, look into who owns it and if there is any potential for new development in the future.
This is just a handful of common home buying mistakes, so it’s important to do your research and to work with a trusted and hard-working real estate agent who can help guide you through the process. Contact Twin City Real Estate Services in Minneapolis today if you have any questions about getting the process started.