4 Common Home Buyer Oversights
August 2, 2016
Buyers on the hunt for the perfect home often overlook common issues that could cost them thousands of dollars and give them buyer's remorse later on.
Read more: How to Prevent Buyer's Remorse
As their real estate professional, your guidance can help clients focus on these four often-forgettable things during their house hunt:
Not taking into account all of the expenses of home ownership.
“People focus so much on mortgage payments and closing costs,” says Brendon DeSimone, author of “Next Generation Real Estate. “What they don’t realize, until after the fact, is that there are expenses like oil or propane and landscaping that are built into home ownership.” Home buyers should ask sellers for a property expense list to get a better gauge of what they’ll be paying each month. Also, financing experts often suggest setting aside 1 percent of the home’s total value annually for repairs and maintenance.
Failing to consider a home’s resale value.
Few buyers actually stay in their home for decades. Buyers should talk to their real estate agent about trends in the neighborhood and the likelihood that the home would sell for the same amount two years, five years, or 10 years down the road, Avery Boyce, a real estate professional with Compass Real Estate in Washington, D.C., told realtor.com®. “Buying a home should make financial sense now, but if circumstances make this home no longer the right one within a few years, you don’t want to be in a tricky financial situation while trying to sell,” Boyce says.
Not investigating the neighborhood more closely.
Make sure your home buyers also closely inspect the neighborhood too. DeSimone suggests that home buyers walk around the neighborhood at different times of the day. Talk with the neighbors too.
Failing to look into the homeowners association.
“Never close on a home without doing serious due diligence on the homeowners association,” says DeSimone. Many HOAs can be supportive, but there have been reports of a few cases where home owners have clashed. Also, it’s important to note if there are a lot of delinquent home owners in the neighborhood because “if there is an upcoming assessment, or there are delinquent home owners, the HOA and you will have to cough up the money to cover it,” DeSimone says.
Source: “6 Things Home Buyers Forget to Do: Did You Forget Them Too?” realtor.com® (July 26, 2016)
Updated: February 14, 2020