This month in their online edition, The Wallstreet Journal recounted the tale of Brendt Montgomery, a buyer who rushed into the purchase of a home at a cheap price and regretted the consequences instantly. Brendt did what many potential homebuyers do when searching for a home in today’s market: buy first, ask questions later. This has become the typical modus operandi for some home-seekers because they are blinded by the low price, without thoroughly checking out the property.
The Wallstreet Journal suggests a few tips to consider when searching for your first home. Please be aware that a good buyer’s agents will help you with every step of the process and make you aware of any pitfalls you might encounter. They also make it their business to intimately know the area they work in to ensure their clients have the best, up-to-date information about that particular market. Movoto-certified buyer’s agents are some of the best in the industry, so take advantage and contact one today.
Before You Buy Your First Home…
· Research properties online, but don’t make a decision until you’ve toured a number of places, talked to neighbors, and developed a feel for the community.
· Prepare a monthly budget, and factor in costs for taxes, association fees, insurance, maintenance and repairs, as well as the mortgage.
· Make sure that any contract that you sign, even for a foreclosed property being sold “as is,” has a clause that allows you to have an inspector examine the property, and to cancel the deal without penalty if you don’t like the findings. That will give you an out should the cost of repairs be too high.
· Understand that any contract that’s prepared by the seller will protect the seller’s interests, not yours. Read it carefully and question any provisions that you disagree with or don’t understand. And have your own attorney review it.
· Realize that if you back out of a contract, you may lose your deposit and be liable for brokers’ fees. If you don’t have a valid reason to cancel, legally you may be obligated to go through with the sale.