Today’s post is a guest post from Tampa Fl real estate agent Lance Mohr. Whether you are looking at buying your first home or your next home in the Tampa Fl real estate market, be sure to give Lance a call at 813-317-4009.
4 Biggest Mistakes First Time Home Buyers of Tampa Fl Real Estate Make
First time home buyers are often the victims of their own ambition.
Buying your first home is a big first step in life and because it’s such a sizable investment it can quite literally put you ahead or knock you back to life.
While most people think they know how to evaluate the value of a property, very few actually do because they lack the financial management skills to evaluate the true value of the investment.
There are 4 of the biggest mistakes that first time home buyers make and these are responsible for some of the worse investment decisions ever made.
Make sure you stay well clear of these and treat this investment with caution and respect.
1. Not Hiring a Realtor
Not hiring a Realtor or Real Estate agent with experience and good standing is one of the biggest mistakes that you can possibly make.
Some people would try and urge first time home buyers to skip a realtor and “do it yourself”.
Let’s put it this way, you are about to make the biggest purchase of your life and you’re going to do it without help?
I would sure hope not.
Research and find a professional who can provide expertise and support.
2. Choosing The Wrong Tampa Fl Real Estate Agent
Real estate is a business with low barriers to entry.
We often find part-time or inexperienced agents on the other side of the table.
Their unprofessionalism and inexperience can cause big mistakes and cost buyers serious money.
Choose a buyer’s agent with the same standards you would apply to your attorney, CPA, or another advisor.
Once you find the right agent, trust them to do their job.
Put them to work for you and you may find a good buyer’s agent is the best deal in real estate.
Always ask these two questions before hiring a Realtor:
1. “Why should I use you” and
2. “What do you do different from the other agent out there”. Then, just listen to their answers.
3. Not Getting Pre-Qualified First
When it comes to the financial part this is also a hurdle that a Realtor will help get you through.
First time home buyers are not always that good when it comes to making financial decisions.
It’s more than just figuring out how much your mortgage will be.
You have to consider interest rate is, will there be a association fees, how much could I afford without sending myself overboard?
All these are very important questions that should be discussed with a professional.
A loan officer is an invaluable resource early in the home buying process.
Generally, a pre-qualification is a review of a borrower’s credit report and discussion on income and assets.
A first time home buyer will learn:
- Any issues on their credit report that may limit or stop them from obtaining a mortgage
- What mortgage programs and associated down payments they are qualified to obtain
- Steps that they should take to make the mortgage process as easy as possible
If done early enough, you will have plenty of time to rectify any negatives on your credit report, to make sure that you can qualify for the best interest rate and/or closing costs.
4. Not Getting A Home Inspection
Have your home inspected by a professional inspection company.
The cost of having a home inspector is a necessary expense since the cost of major defects, latent or otherwise, can be disastrous.
Have the home inspected for structural defects, insects, radon, and other problems.
If defects are identified by the inspection, you may be able to get a lower purchase price to cover the cost of repairs or require the seller to make the repairs to the satisfaction of you/the inspector.
Even if you are an expert carpenter with many years in the trades, we recommend a professional home inspection.
In some cases (like established neighborhoods with mature trees between the house and the street which may be prone to root intrusions) we also recommend a sewer inspection with fiber optics/remote cameras.
If there are signs of water damage or moisture in the home, we’ll recommend a mold inspection as well.
The upfront costs for inspection can start as low as $250 and it’s a cheap peace of mind.
Buying your first home can definitely seem overwhelming and stressful at times.
But if you go into the process has already done your homework, you can protect yourself from all of these mistakes and shop with confidence.