Top 7 New Home Buying Mistakes

With all the options available to you when buying a new home, it is easy to look past some of the critical issues that could very well end up costing you a lot of time, energy, and money.

Here are 7 MISTAKE TO AVOID:

  1. Choosing upgrades that won't give you a good return on investment, or just choosing too many upgrades overall.
    • You must consider the resale value of your home in the future if you want to make the right decisions regarding upgrades.  Stick with the necessary upgrades:  two sinks in the master bathroom, high quality cabinetry, and top quality padding under the carpeted areas.
  2. Not examining your lot choice thoroughly enough.
    • One important aspect to look at is terrain.  People tend to feel better looking down at the street instead of looking up at the street.  The location on the street and lot shape should also be taken into consideration.  Both of these can drastically affect your home's surroundings.
  3. Finding your community first, and your vitals second.
    • Buying a home is unlike any other purchase you will make, including purchasing your car.  Make sure you have settled on your lifestyle requirements and what you will need and want in a community before you decide on a location to build your home.
  4. Overlooking the inspection clause in the builder contracts.
    • A unknown aspect in some home building circles is that there can be a clause in the contract that does NOT allow home inspections by an independent, third party home inspector until AFTER you own the home.  Many will offer to do a walkthrough with you before it closes, but unless you personally are a licensed home inspector, you won't notice any items that would raise red flags beyond superficial interior or exterior defects.
  5. Not using a buyer's agent.
    • You will need to make sure you find a buyer's agent who specializes in new home sales.  Many agents only buy and sell older homes and aren't well versed in the intricacies of new homes sales.  Some of the aspects would include price negotation, lot choice, researching future development around the community and the pros and cons of the materials the builder will use.
  6. Using the builder endorsed financing company out of convenience.
    • Many builders have their own in-house financing company and they often offer incentives on their products by tying in the use of the incentives to financing through their in-house lender.  In some cases, if you do the proper evaluation, you will find that using the in-house lender can cost you more money in the long run than using an outside lender.  Rule of thumb: Always research your options between the in-house lender, a loan officer, and a mortgage broker to be fully informed of every possible option.
  7. Believing everything you read in advertisements.
    • If it looks to good to be true, it probably is.  Always verify anything you read in advertisements regarding real estate.  It is not uncommon to see false advertising, or advertising that is misleading that cause you to become interested in something you normally would not be.

Buying a new home can be a wonderful experience that will change your life and cater to your every need.  By using caution, being properly prepared, and using the guidance of professionals, you can enjoy many years in your new home and reap substantial rewards from your diligent buying efforts when selling your home in the future.

Thanks to Joshua Ferris for these 7 Mistakes to Avoid.

Please contact us if you have any questions about anything in this article.  We can help with everything!  See our Home Buyers Information section for great tips on buying your dream home!  The Carol Meadows Team 513.766.3878