Buying a house is exciting but also a bit risky. Mistakes could cost you tens of thousands of dollars or leave you living somewhere that doesn’t really meet your needs. There are ways to protect yourself during the process of hunting for a new home.
While protecting yourself may mean it takes longer to find a home, it also means you don’t have to suffer any major losses on your path to homeownership.
Draft a custom offer with the right contingency clauses
When you make an offer on a property, you have a contractual obligation to follow through with it. Adding contingency clauses gives you an escape route if something goes wrong. Whether there is a gap between your offer and the appraised value of the home or you can’t sell your house, drafting a custom offer with clauses allows you to back out without losing anything.
Be realistic about your budget
When the real estate market has high demand, properties often sell for over the asking price. Once you know how much you can finance, you need to leave some wiggle room for offers over the asking price when choosing what properties to tour. You also need to think about leaving some cushion in your financing and your overall budget for closing costs and unexpected expenses that inevitably arise.
Trust the professionals
From working with the real estate agent to arrange for viewings to having an inspector check the property, there is value in working with professionals during a purchase. While some buyers go without legal help or waive their inspections, they take risks by doing so.
Partnering with respected and licensed professionals will help you avoid common pitfalls experienced when buying residential real estate.