Buying A Home? Don't Make These Mistakes!

Buying A Home? Don't Make These Mistakes!

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Barbara Corcoran, one of the hosts of the popular T.V. show, Shark Tank, recently appeared on NBC's The Today Show and gave some tips about things to watch out for when buying a home. Because Corcoran is a real estate mogul that turned $1000 into a multi-million dollar real estate firm, we thought it would probably be a good idea to tune in to her tips. And once we did, we just couldn't help but pass them onto you. :) Keep reading to find out the 5 biggest mistakes that homebuyers make and ways that you can avoid falling into these same holes. 

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Mistake #1

Waiting for the price to come down

As Corcoran says, "You cannot sharp-shoot the real estate market." Prices change all the time and there will always be fluctuation in the market. The best thing you can do is simply buy when the prices of homes are down - which they certainly are now. You also need to keep an eye on interest rates. If prices drop but interest rates rise, you could end up paying just as much, or even more on your home every month.

 

Mistake #2

Picking the wrong town

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Every city has a personality - young, old, conservative, liberal, modern, traditional, and the list goes on and on. When deciding on a house, make sure that you pick a place that fits your personality and your stage of life. Visit restaurants, coffee shops, and local stores. Check out the schools in the area (even if you don't have children, nice schools boost the value of your home). Stop by a couple parks, libraries, or community-run events. Basically, just get a feel for the environment. By doing this you'll be better equipped to make a decision about whether your new home will be what you need and want in the long run. 

Also, make sure you check out other houses on the street and block. "The block determines value more than the actual home," says Corcoran. By making sure that the other houses on the block are nice and well-kept, you'll protect the investment you make in your house as well as increase your chances of having a better living experience. 

Mistake #3

Not asking to see the last six months of electric and water bills

Of course you'll probably be told what the utilities of a new home will cost you, but if you don't check the past bills, you could end up with some nasty surprises. If the home has poor installation, it will have trouble keeping in heat and this could raise your heating bill, especially in the winter. If a home has an old furnace, it could burn through money very quickly. These are just two examples of things you might not realize until after you've already purchased the home if you don't ask to see past bills. So check past bills and try to get a feel for what the utilities will cost you during every season. 

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   Mistake #4

Falling in love with the decor

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When you walk through a house, try to picture it without the furnishings and current homeowners decorations. Try to think more in terms of the floor plan than the surface stuff. Try to take in the size, the condition and natural light situation. Don't be taken in or scared off by the decorations.      

Mistake #5

Buying a money pit

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Many people think that buying a fixer-upper will be fun and that fixing all the problems and updating a home will be easy. However, it's usually harder than it looks...and more expensive than they think it will be. According to Corcoran, " A small kitchen renovation usually costs between $25,000-$40,000. A standard bathroom renovation can cost you between $15,000-$25,000. Even painting a house costs between $7,000-10,000. So, don't be too quick to jump into a fixer-upper if you haven't done it before. It could end up costing more than you think and might not be worth it. 

Thanks for reading! To see Barbara Corcoran's interview on The Today Show, click here. Interview with Barbara Corcoran. And remember to contact The Roxburgh Group for all of your real estate needs!