Are you thinking about buying real estate in Detroit? In our latest post, we offer a few things to avoid when you are buying a house!
Buying a house can be stressful. There are many questions involved, and it can be difficult to know when you have found the right property. There are a few common things many people do when buying that can end up costing a lot of time or money. We can help you avoid these things so you can purchase the property that is right for you!
Picking The Wrong Mortgage
You might be shooting to pay only 3.5% down, however, if you can save up the 20% for a conventional loan or even consider buying in cash, you will save yourself a fortune in mortgage and mortgage insurance costs. There are many mortgage options out there. It is important to not only look at what can get you into a house right away, but what your numbers will look like long-term.
Buying From Emotion
The color of the walls in the living room remind you of your Grandma’s house growing up. Or the garden is just so pretty. These aren’t necessarily reasons to buy a house. You will need to separate the emotion from your decision to buy. How does the house look on paper? Are the numbers right? What about repairs? Don’t make an offer on a house purely on the good feeling it gives you. Make sure it is a practical choice as well.
Many sellers rush into a purchase out of desperation. If you have been looking for a house for 8 months and finally find one that is just ok, you might be more tempted to make an offer. Before you do, make sure it is a property you really want and that you would have made the same offer even if it was your first day of home searching.
Choosing An Agent or Lender Blindly
Sure you can look at reviews online, but how do you know those reviews weren’t written by the agent’s friends? Try to speak to people directly who have used your agent or lender. Get the inside scoop on how it is to work with them. Don’t just pick a 4-star agent. Pick someone who you will see eye to eye with too!
Not Exploring Your Options
You don’t have to buy a house off the MLS or hire a buyers agent. There are many ways to buy properties in Detroit. You could choose to buy a house from a professional investor such as Freedom Acquisition Management LLC. When you buy from a professional, you will always know what you are getting. There are many ways to buy, don’t get discouraged if you aren’t finding the right property on the MLS! Explore your options and we will help you find what you have been looking for!
Letting An Agent Talk You Into A Property
As agent gets their commission at the closing. That said, if you don’t close, they don’t get paid. They ultimately want to see you buy a house, sometimes any house so that they are able to put some cash into the bank. Never let an agent talk you into a property. A good agent will present the facts, leaving it up to you whether or not you want to make an offer.
Don’t Wait For The “Perfect” House
There’s honestly no such thing. Yes, you will want to cross off as many things from your “must-have” list as possible, but it isn’t likely you will find your ultimate dream home, at the price you want, at the moment you start looking. Be open-minded, think of possibilities and keep in mind, you can always do some renovations down the road. By dragging your feet, you could miss out on what could be the perfect home.
Put Your Needs First
You heard from your mechanic, that his sister said prices in your neighborhood were going to drop drastically in 6 months. People try to predict, but if you need a house, now is the time to get a house. Not 6 months down the road, when you don’t know what the market will look like. Don’t buy out of future speculation. But because you need a house right now.