I’m starting the process of buying my first house. What common pitfalls should I be on the lookout for?
I’m in South Carolina if that matters.
Posted Feb 24, 2020, 11:09 PM UTC
08
There are plenty of decent, honest Realtors. Ask around and pick the one whose communication style best fits yours.
3
Be prepared to get screwed by your realtors. I can almost guarantee you that you'll make an offer on a house, and "coincidentally" another offer will magically be put down at exactly the same time, which will push you into upping your bid.
Everything is expensive, so whatever amount you are pre-approved for doesn't mean you have to set that as your limit. In fact, stay as well below that number as you can.
2
This.
The idea that the buyer’s agent works for you is BS. They look out for themselves and no one else. Don’t get talked into a bidding war on a house. There’s always another place out there.
3
I’m a little confused. How does the scenario in the first paragraph work for the realtor?
1
Realtors are paid as a % of sales price. So the higher the price, the higher their commission, which is in direct opposition to their duty to get you the lowest price.
3
I would say... prepare yourself emotionally as well as financially. Chances are good you are not going to buy a show house. If you watch HGTV or "House Porn" (as my husband calls it) be aware your house will not look like those "AFTER" houses unless you buy new or buy a house that has been flipped (in which case you will likely pay a premium).
Exile the ideas of a "Dream house", "Forever Home", or "perfect" from your mind. As a first time home buyer, unless you are ready to retire, you will not be getting a forever home. I am on my third house and you never know what opportunity might cause you to move.
Replace those ideas with "Good location", "Well Maintained" and "Structurally sound". Your house should not be your life... is should be the setting where your life happens.
2
On the mortgage side, the most common things that jams people up is moving money around for no reason. 9/11 happened, Dodd Frank happened, etc. So just assume that every single penny is going to have to be sourced and paper-trailed. If you don't want someone all up in your business about what was this transaction, what was that transaction, explain and document, bla bla bla, then chill out with it all. Your bank statements are the "resume" of the funds you have saved, you want a clean resume.
That is easily done, everything I do is digital, so I’m good there.