Don't Make These Anxious Buyer Mistakes!

Buying a house can be exciting - whether it's your first house, your "move-up" home, a vacation home or your retirement home. You need to be careful, though, not to let your excitement cloud your vision. So keep these tips in mind!

The house isn't your perfect vision.

Don't forego looking at a house because it doesn't have everything on your wish list. It's very rare to find a "perfect" home, especially with ever changing design choices and "paint colors of the year." It's great to make a list, but use it as a starting point, not an absolute. Making a list will also help you realize what items and features you really can't live without, and which ones you might be able to add later - or not at all.  White kitchen cabinets when you want gray? That's a relatively easy and inexpensive fix. Light oak flooring instead of dark espresso wood? The floors can be stained. So keep an open mind and look for "good bones" and a location and size that fit your needs.

Making an offer sight unseen.

With the shortage of inventory on the market it's become common for properties to receive multiple, over list price offers. Making an offer after just seeing a home online, though, is a very risky proposition. Can you really judge a home's condition just by looking at photos? What can't you see (or smell or hear)?  Do the rooms look large due to the camera angle or lens used? Are there funky spaces or features you can't see? Is the yard usable? What's the neighborhood like, and what's the commute like?

There are so many things you can't tell by photos, floorplans and "virtual tours" alone. Buying a home is a visceral thing, not one to jump into lightly.

Using the open house agent as your buyer's agent

When you go to an open house you might have that gut feeling that this is THE ONE. And there's an agent right there at the open house, pointing out the features and maybe telling you there's a lot of interest in the property. You feel the pressure - you want to make an offer. But keep in mind that the agent at an open house represents the seller. What does that mean?

That means they're obligated to work in that seller's best interest. You don't want to give away any information that might give the seller leverage when it comes to negotiating. Don't tell the open house agent what your budget is, what you'll compromise on, that you're in a rush to buy, etc. You want an agent who works on your behalf, not one who is giving away your negotiating power. Working with your own buyer's agent is an important factor - and your agent can help you through the process to best suit your time table and budget.

Value estimators

Speaking of the value of a buyer's agent, let that agent examine the comparable sales in the market to give you a good estimate of the home's value. It's very easy these days to search online and find all sorts of supposed estimation tools, but in reality these tools can't take into account things like specific neighborhoods, the overall condition of homes, upgrades and renovations, environmental factors that will raise or lower a home's value, etc. These online tools just use algorithms that provide generalized estimates.  An online value estimator may pin a value of $500,000 on a house that's only worth $425,000, getting your hopes up that you can afford it. Or worse, the house may actually be worth $600,000 which is out of your budget, leaving you with nothing but disappointment!

The takeaway

Work with an experienced, local, trusted agent when looking for your next home!