 What’s the worst mistake a homebuyer can make? With hundreds – perhaps thousands – of experts out there, I thought it should be easy to find the answer to that question. So, I consulted the electronic crystal ball better known as the Internet. It did not take long to find an answer.
- Home inspectors say the biggest mistake is not using a home inspector.
- Mortgage bankers say the biggest mistake is not getting your financing lined up first.
- Lawyers say the biggest mistake is not having an attorney at closing.
- Real estate agents say the biggest mistake is buying a for-sale-by-owner.
- For-sale-by-owner franchisees say the biggest mistake is using a real estate agent.
Thankfully, there were what appeared to be some unbiased answers. Unfortunately, none of them agreed. So, the answer I came up with is a blend of several ideas. The worst mistake a homebuyer can make is (drum roll, please): buying a home without putting a lot of thought into it.
David Weekley, CEO of Houston-based David Weekley Homes, wrote in his book How to Buy a House Without Getting Hammered that the No. 1 homebuyer mistake is “not doing your homework.”
In reality, worst mistakes come in categories. There’s a worst emotional mistake. There’s a worst financial mistake. There’s a worst buying-it-from-a-for-sale-by-owner mistake. And, of course, many buyers will say that the worst mistake they made was picking the wrong house.
As far as emotional mistakes go, Ilyce Glink writes in her book, 10 Steps to Home Ownership that “falling in love” with a particular house tops the list. She says buyers must reconcile their dreams with their checkbooks. When emotions get involved, it’s hard to make an objective choice. “Because a home is a very personal decision,” says Elizabeth Fox-Wise writing for digits.com, “your judgment can become clouded when choosing which home to buy.”
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SmartSense Publications says overpaying for a house is epidemic among buyers who let their emotions rule their better judgment. Glink says overpaying for property is common when buyers don’t have a real estate agent. That’s because buyers can’t compare the property with similar sales and because they may not be told about negative development plans for other nearby properties.
There are many opinions on the worst financial mistake a homebuyer can make. Holden Lewis of bankrate.com says buyers should shop for a mortgage first, then the house. Otherwise, you find the house of your dreams and then find out you can’t afford it. After that, you can never be satisfied.
Mailgenie.biz says the biggest mistake first-time buyers make is looking outside their price range. They advise getting prequalified before searching for a home. Glink writes that the top financial mistake a buyer can make is “blowing your budget – spending more than you earn.” Preparing for homeownership means preparing a budget, she says.
Thanks to the Internet, there’s a tremendous amount of data literally at your fingertips. If you want to buy a home, there’s ample opportunity to educate yourself. But you must access it, evaluate it, and make an informed decision. Thanks to the Internet, you can get an idea of what your local housing market is like. Some homes even have virtual tours. And with gasoline prices what they are today, visiting houses online saves money.
We all make mistakes. (How do you think the “experts” know what they are?) Buying a house is a big decision, and avoiding a big mistake is about all we can hope for.
I wish the Internet had been around when I bought my last home 30 years ago. I could have avoided my big mistake – looking at too many houses. The experts say you should only visit seven to 10 homes, otherwise you get confused. I think I looked at 40. Talk about overwhelming …
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