Buying a house when the market is hot is a complicated prospect. You want a home, but it seems like any time you even begin to look it gets snatched out from underneath you. You have a list of things you want, and things you need, and that makes things confusing as well. How can you avoid making major mistakes when buying a house, especially in a hot market?
Hire a Real Estate Agent
It can seem like it would take less effort, or save on commission, to not have an agent. However, especially in a hot market, having an agent is key to finding and getting a contract on a home. They have access to knowledge about market trends, homes about to be listed, and other insider information. According to Investopedia, a good agent will be able to narrow down what things you need and want and show you those homes, so that you can make a decision quickly if necessary.
Get an Inspection
It can seem like a nice shortcut to jump over having house inspections and whatnot but do not skip this critical step. Your agent can help you find a good inspector. According to J Bixler Inspections, inspections typically take several hours to complete. They should be thorough. You and the owner should both be there if possible, during the inspection, but if not, your agent can act on your behalf. You should get the written notes, and your agent can help you with further negotiation.
Money Matters…Matter
According to Pat O’Brien and Associates, one of the biggest mistakes buyers make is not getting preapproved with their lender and knowing how much they can actually afford. It can be easy to fall in love with a home just outside of the amount your agency or lender says you can afford, but not realize that there are other factors at play with your finances. When lenders approve you, they consider how much you make as a factor of how much you can afford. They do not, however, factor in medical bills, educational loans, child support, or other factors which affect your money.
It’s critical to have all your finances in line before searching for your new home. With a great agent, you can get everything in line, with an inspection, and contracts. Have a list of your wants and needs in a home. Pretty soon you’ll be moving into a beautiful new home with all the amenities you’ve desired!
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