|Myrtle Beach SC Real Estate|
Top 7 common mistakes
homebuyers can make.
Real Estate in myrtle beach south carolina
Posted by Jeff - 12/15/2015 - Reading time: 9 Minutes
Top 7 Mistakes that Homebuyers Can Make
There are few things as exciting and anxiety-ridden as buying a new home in Myrtle Beach South Carolina. While this is a whirlwind time, it is also a time when you need to be very careful. Many people make mistakes when they buy houses that could affect them for years. Here are the top seven mistakes people make when venturing into the crazy world of real estate.
1. Buying too much house. One of the most common rookie mistakes of people looking at homes for sale in Myrtle Beach, SC is to buy at the upper end up their price range. Not only does this lead to too high of a mortgage, it leads to more home repairs and other expenses of the long run. People who buy houses at the upper end of their budget end up stretching themselves just to meet basic expenses. When this happens, even a small financial change can leave homeowners in a bind.
Buying at the upper end of your budget can prove to be a huge mistake in time.
2. Buying a home that doesn't meet your needs. When you are looking at real estate in Myrtle Beach South Carolina, you may find several homes that you love that don’t necessarily meet your needs. Maybe they have too few bathrooms or not enough outdoor space. Perhaps the neighborhood is not one where you would feel comfortably. Many people decide to buy houses that do not meet their needs only to find later that they were wrong to compromise on their basic needs.
3. Not being forthcoming with your realtor. Many people are not forthcoming with their realtor about their needs, their financial situation, or their misgivings when looking at property for sale. This can put people at a huge disadvantage when looking to buy houses in Myrtle Beach South Carolina. A realtor is a valuable resource when buying real estate. They can talk you through misgivings or help you find homes that better meet your needs. Let your realtor be your adviser and advocate; that is why they are there.
Knowing your way around town will help you pick the right area to invest.
4. Buying before you are ready to settle. It’s normal to be sick of renting and want to begin building equity in real estate. However, this does not mean that now is the time to buy. However, if you are thinking about moving away from Myrtle Beach, SC in the next few years, now is not the time to buy. Don’t assume you can rent out your house or sell it quickly when it comes time to move; many people who make this assumption end up saddled with both a mortgage and a rental payment when their move coincides with a temporary market downturn. Buy houses that you know you can live in for a longer term.
5. Not planning for resale. Many people look to buy houses in Myrtle Beach South Carolina without thinking about the home’s resale value. Even if you are not buying an investment property, you likely will eventually sell your home at some point in the future. While it’s important to buy houses that you can live in and love, you should also you buy a house that will appeal to future home buyers. There are plenty of homes for sale, so avoid bad neighborhoods, unwieldy floor plans, and other things that might be deal breakers to future buyers.
6. Skimping on the down payment. While the days of buying a home with zero down are over, many people are interested in real estate in Myrtle Beach South Carolina still can find mortgages with very low down payments. However, it is a good idea to put as large of a down payment as possible. First, this can considerably lower your mortgage payment as you will reduce not just the principal but the compounded interest. Second, if you have less than 20% equity in a home then you will have the additional expense of private mortgage insurance (PMI). Last, people who buy houses with little down can find themselves underwater in the mortgage if they have to unexpectedly sell. If you cannot put down a substantial down payment, its best to wait on buying a home or look at homes for sale in Myrtle Beach, SC that are in a lower price range.
Having a plan before you get involved in the buying process will help you make a much better decision.
7. Neglecting to plan for closing costs. Buying a home is such a financial challenge that many couples wing it and hope to find money for needs as they arise. This is rarely a good idea, because closing costs for people who buy houses will be in the thousands of dollars. This can be a huge challenge for someone who is already stretching their budget just to pay condo or house prices. People looking at real estate in Myrtle Beach South Carolina should begin saving for closing costs as early in the home buying process as possible.
Buying a home is an intimidating process, but also a very rewarding one. By avoiding these common mistakes, you can ensure that your adventures in real estate are successful and as uncomplicated as possible.
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