Did you decide against a home inspection or hire your friend’s uncle Billy who dabbles in home repair when he’s not teaching yoga at the local YMCA? Your home has a structural issue that the Seller had hid and now after several months you discover that one side of your home and it’s 3 bedrooms are all tilting.

Never ever, ever skip a home inspection and always hire a skilled home Inspector. It’s important to know what is under, that is visually able to be seen. What’s hidden is what the Inspector reveals. Once any imperfections, minor or major will be made visible, you are then armed with valuable information regarding your home purchase. Now you’re able to make an educated decision on whether or not you’ll continue with the home purchase.

Home appraises for less than your home purchase offer

Understand the options when this is a possibility, particularly when folding closing costs into the home’s sales price. The appraisal comes back lower than the purchase price.

You will have 3 options; pay difference between home’s value (appraisal) and purchase price, Seller reduces sales price or you cancel the home purchase. Your Lender will not lend you money for more than the value of the home, so consider what you’ll do ahead of time when considering what price you’ll offer the home Seller.

You should plan on your Real Estate Agent’s direction on a home purchase price, so you know how your offer price will likely pan out.

You paid lower taxes this past year, affecting your home purchasing power

What, you’re only approved for that amount; yet you make so much more money!

How much do your write off from your taxes each year? When a Lender considers your loan value, they look at your net earnings and not your gross income. If you have a way in twiddling the numbers down so you have to pay less taxes, you’re also twiddling away your home purchasing power. Business expenses incurred reduce your taxable income and hence, you net income. If you’re a business owner, self employed or you utilize a lot of tax saving deductions, you might want to think of lessening those deductions if you have your eyes set on qualifying for a larger home loan.

Knowing your local Real Estate market will determine how much of a good deal you’ll be able to secure. Simply coming in with a low ball offer when the market won’t bear it, will result in great disappointment; you’ll likely lose the home you love.

Various markets, whether a Seller’s, Balanced or Buyer’s will have strategies that work in each market. Discuss this with your Real Estate Agent who can direct you in presenting an offer on the home you love.

If you’re really not serious about buying a home and are more interested in getting a bargain basement deal, then you simply wanted a good deal and gambling in a Seller’s Market will prove futile.

You now live next to the neighbor from hell

No, not this neighbor, tell me it isn’t so! We’ve all heard the stories of the neighbor from hell. Run.

Do your neighborhood homework before buying a home. Drive by during the evening hour and weekend hours if you can, to see what the neighbors are up to. Of course, they’re far and few between, but wouldn’t you like to know before you move in and discover that your neighbor loves to blast loud music from his backyard?!

It all boils down to this, in closing:

Know what you can afford, choose your new home with your head and not your heart, understand timelines involved in the home you choose, have a home inspection, understand the effects of an appraisal, know your purchasing power, don’t over deal and find out about the neighbors. Of course, this doesn’t cover all potential home buying pitfalls, but it will get you started. Happy home buying!

We buy houses in Brooklyn

Now you’re armed with being able to actually avoid the common pitfalls in home buying.