CHICAGO – Aug. 31, 2016 – Buyers on the hunt for the perfect home often overlook common issues that could cost them thousands of dollars and lead to buyer's remorse.
Realtors can help clients focus on these four often-forgettable things during their house hunt:
Not counting all the expenses of homeownership
"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 homeownership." Homebuyers 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. When visiting listings, 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 in two years, five years or 10 years down the road, says Avery Boyce, a real estate professional with Compass Real Estate in Washington, D.C.
"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
DeSimone suggests that homebuyers 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 homeowners have clashed. Also, find out if there are a lot of delinquent homeowners in the neighborhood because "if there is an upcoming assessment, or there are delinquent homeowners, 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