Buyer’s remorse isn’t a fun thing… especially when it comes to buying a home. It happens more than you’d think for home buyers, especially first-time buyers. The process of buying a home – from obtaining financing to closing – can be a lengthy and complex process. Many buyers are unfamiliar with the process and wind up making some missteps along the way. To help you avoid making these mistakes, here are 5 things home buyers wish they knew before purchasing a house in Olathe.
Pre-Approval is Important
Before you set out on your Olathe home search, you should get pre-approved for a mortgage. It will save you loads of time, give you more negotiating leverage, and may save you money. You don’t want to find a home you love and not be able to make a legitimate offer because you aren’t pre-approved for a loan yet.
Getting approved will let you know exactly how much a mortgage lender will lend you. That way you can confine your house hunting to those actually within your price range. In addition, sellers will see you as a serious buyer. In today’s extremely competitive market, sellers won’t even entertain an offer from a buyer that isn’t pre-approved with a letter from the lender.
Visiting a House at Various Times
Another one of the things home buyers wish they knew before purchasing a house in Olathe is the need to visit prospective homes at different times of the day. The house will look different, and the neighborhood may have a completely different feel.
Here’s an example from one first-time buyer:
“When I bought my first property, I didn’t know the area too well . . . I visited on a sunny morning. The area looked green, and it was close to a train station. After buying, I found out the area got really shady at night. And the local teenagers enjoyed breaking mailboxes and elevators, resulting in unneeded HOA fees.”
That’s why many professionals recommend visiting a house during both the day and night, and even the weekend versus a weekday.
“Hidden” Costs of Buying a House
Many home owners say they wish they’d known before purchasing a house about the many “hidden” costs. The cost of buying goes far beyond the monthly mortgage/escrow payments. Without factoring in these many other costs and recurring expenses, buyers often wind up purchasing what they can’t really afford.
- Property taxes
- Homeowners insurance
- Private mortgage insurance (PMI)
- HOA fees
- Maintenance and repairs
“[M]ake sure,” industry experts advise, “you factor in the total monthly cost of owning that house. This will give you a true sense of what you can afford.”
Check Your Emotions at the Door
Many home buyers eventually dsicover that their emotions are not a good guide in purchasing a house. While this may be difficult when buying a house in Olathe, setting your emotions aside and taking an objective look at the big picture is crucial.
One couple signed a contract right away – on the basis of emotional appeal alone – on a house they loved and that ticked all their boxes. However, their home inspection later revealed that they’d have to replace most of the roof, the water heater, much of the plumbing, and bedroom windows.
“To fix all of the issues, we were looking at $20,000 out of pocket, and the seller offered just $500. Yet, I loved the house and I wanted to make the repairs. I had to step back and detach emotionally. From that point, I realized this house was looking like a money pit . . . [D]on’t let your emotions rule as you may end up regretting your choice.”
Your agent can be a huge help here by providing the needed objectivity and asking you the right questions to ensure that the house is feasible for you on the financial end as well.
Closing Costs Add Up
Many home buyers also say they wish they’d known more about the closing costs before purchasing a house in Olathe. Even though closing costs may pale in comparison to the purchase price, they can still add up to a substantial amount of money.
Closing costs typically range from 2% to 5% of the purchase price, which is a little more than what a lot of home buyers are expecting. Many people find that after making a big down payment, they then have to scramble to cover closing costs. Don’t let this be you!
The Value of a Good Real Estate Agent
One last thing a lot of buyers say they wish they’d known before purchasing a house in Olathe is the value and worth of a good local real estate agent. It often turns out that they don’t hire a good agent or don’t take the consideration of advice received from their agent.