These are five common mistakes made by all kinds of home buyers, but most frequently by first-time home buyers. Not all of these mistakes are huge, but they all can make your purchase much more difficult and stressful if you do not avoid them. This is part one of a five part series the the most common mistakes. If you have any questions about buying a home and your specific situation, contact me! In this first installment, we will talk about the danger of taking advice on your real estate purchase from friends and family. Friends and family can be a valuable resource in many situations, but there are two major reasons why taking advice from friends and family can be dangerous when buying a home.
First, a number of factors make every single real estate transaction unique and complex and should be handled by someone with knowledge and experience of a professional. The unique factors include the personalities, income, credit scores , debt ratios, savings and preferences of both the buyer and the seller. Throw in the complexities of real estate law, changing home prices and market conditions and a fluid lending climate and you can start to see why it might be important to have a professional on your side. Your local real estate agents and loan officers are working in the real estate field on a daily basis and have an in-depth knowledge and real-time experience in dealing with home values, appraisals, negotiations, lender requirements, inspections and much, much more. While your friends and family almost assuredly have good intentions, they do not have the knowledge and experience you need to make informed decisions and to protect you. Also, with the real estate market constantly changing, what was true when your friend or relative bought a home, or what was true a year ago or even yesterday, might not be true today. While it is prudent to get a second opinion in most situations, you should seek that advice from another industry professional who has all the details of your situation.
Second, taking advice from friends and family when buying a home should be avoided because they do not have the same perspective as you on your home purchase. While your friends and family will undoubtedly be entertained in your house and might even stay the night on a holiday, they will not be living in your home, YOU WILL! They will not have their name on the deed, be paying the mortgage, driving your daily commute to work or maintaining your home. I am sure that while your friends and family also have excellent taste and a impeccable sense of style, when their tastes and styles are imposed into your home search and buying decision, it will make things much more complicated and cloud your ability to know what is best for YOU! If you invite a friend or family member along with you to see homes with your real estate agent, you might get more than you bargained for – a third decision maker on which home you should or shouldn’t buy!
Friends and family care about you very deeply and only what the best for you! That being said, their desire to “help” can add stress and be a hindrance when buying a home, especially when buying your first home. I hope this advice will help you when buying your home – if I can help you, let me know! When part 2 is posted, check out another common mistake, Buying the Most Expensive Home You Can Afford!