Contact

Christina Yoon
Real Estate Agent

Anne Arundel Properties
Hanover Office
Phone: (443) 848-3666
Fax: (410) 859-3182

E-mail: homes@christinayoon.com

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Saturday, September 4, 2010

Check this website for updates on real estate markets and values.  Always feel free to contact me with any real estate needs/concerns. 

Worst Mistakes to Make When Buying a New Home
Buying real estate is the largest investment the Average Joe ever makes.  In order to ensure that real estate transactions are as smooth as possible, it is good to be aware of common blunders that can cost. 

To know them is to avoid them.

Going solo Buying a house is an intricate process that requires additional insight and knowledge. It should be a team effort. A real estate agent, lender, inspector, insurer, maybe even a lawyer and other team members can help you through each step of the way. Search for team members before you search for homes.

Love at first sight It is easy to get carried away when viewing certain homes.  However, your home should fit your real needs. Buy a home that fits your budget and your lifestyle. Be sure the home is in a community and neighborhood that suits your requirements. Visit neighborhoods several times before you buy to check out schools, noise, traffic patterns and even what the neighbors seem like.

Shopping without a Loan Being pre-qualified saves you the temptation to buy a home that is more than you can afford.  Not only will you stay within your budget but sellers will take you more seriously.

Overbuying It is essential to pick a home you can truly afford.  Over spending helped contribute to the collapse of the housing market.  Buy more than you can afford and your dream home will become the same nightmare. Analyze all your monthly expenses, generally this should not exceed 36 percent of your income before taxes. Don’t forget that later, utilities and taxes can increase not to mention additional expenses usually arise.

Misplaced trust You are engaged in what's likely your most valuable acquisition ever. It's a business transaction. Ask family, friends, co-workers, professionals and others you trust for referrals, but don't take their word for it. Vet your team members.

Accepting oral agreements Put it in writing. Always. “He said, she said” disputes never end happily.

Not reading the fine print Never sign something when you don’t understand what you’re signing away. Take your time and read thoroughly. Get copies of your mortgage and closing papers a few days ahead of closing.

Forgetting or betting on resale Don’t buy a home that costs 50 percent more than neighboring homes. Reconsider buying the most expensive home on the block. Neighbors' lower home values will weaken yours.

Making an unconditional offer Protect yourself and your assests with these contingencies:

• Mortgage financing. Include in every offer because if the house appraises lower than the sales price, the loan may be declined.

• Inspection. Never buy without a licensed home inspection. There can be underlying issues that you can’t see right away. Walk through the home with the inspector.

• Insurance. Confirm you can get sufficient insurance coverage.  Especially in Maryland, you want to make sure you can obtain flood coverage.