6 House Hunting
Pitfalls to Avoid

1. Missing out on the perfect place. 

Hundreds of new homes hit the market every day, and if you’re not using all of the house hunting tools available, your dream home could slip by unnoticed — or worse, someone else might snatch it up before you even know that it’s for sale. One of the toughest lessons for a first-time (and, yes, even a second-time) buyer is that in this market, passive house hunting simply will not cut it. If you don’t make house hunting a top priority, it’s going to be a painful process. Work with your agent to come up with a smart strategy—and clarify your preferred method of contact—for moving quickly when a listing that you just have to see hits the market. Plus, be sure that you leverage smart free tools like Trulia’s Nearby Home Alerts. You’ll get an instant notification on your mobile device when new listings near your current location come on the market.

2. Choosing the wrong lender. 

Few things are more frustrating than finding the property you’ve been looking for only to find out that the loan you were promised isn’t coming through. Many agents will provide a list of their preferred lenders. Trust your Realtor - they do lots of business and know which lenders deliver what they promise, on time! Preferred lenders earn their preferred status only after they’ve consistently delivered loan closings. Seek out preferred lenders, and don’t be afraid to interview two or three to find your ideal fit.

3. Fixating on price per square foot. 

Let your agent guide you here.  Are you searching by price per square foot? If you are using this as one of your search criteria, you might want to think again. Measurements, often are not guaranteed to be accurate, and mis-measurements can place appropriately priced homes outside of your search parameters. Other criteria can also effect the accuracy of price per square foot.  However, that being said, the home you choose will be appraised using price per square foot, so that's something to keep in mind.

4. Desperation.

When prices are on the rise, buyers get antsy and sellers get greedy. Many buyers have been outbid on numerous properties and have just become tired of looking. As a result, they are placing ridiculously high offers on properties that just aren’t worth it—just to get into a home this minute. Avoid the temptation and build yourself a backup plan. Have your real estate agent recommend short-term or corporate rentals options, so you’ll have a soft place to land while you wait for your dream home to appear on the market.

5. Foregoing Inspections

In a perfect world, sellers would disclose every single issue to the prospective buyers. Since that’s not the case, inspections are a great idea; yet one that many agents see clients skipping too often. Inspections identify red flags and can address the general state of a property. Plus, they can provide leverage when it comes time to negotiate.

6. Buying a “project.” 

The unwritten rule of renovating states that it will take more time and money than expected. So it’s important to know your threshold for renovations before you buy a fixer-upper. Your real estate agent will have referrals to general contractors and specialty tradesmen. It doesn’t hurt to schedule a showing with one of these pros in tow either. It’s better to know what you’re getting into before you find yourself in over your head.  With a bit of savvy, patience and the right agent, many of the pains that come with house hunting can be avoided. And if all goes according to plan, you’ll end up with a place you’ll be proud to call home.

Source: Trulia @ www.trulia.com