The Huffington Post published a article in December: that outlines some of the mistakes first-time home-buyers make. (Best part: the list is punctuated by hilarious animated "gifs". We particularly like the one featuring the poor guy at the track meet watching everyone pass him by.
A related report " 7 mistakes for home buyer's to avoid" is available to help you get started.
One of the Common Mistakes is Hiring the wrong Scottsdale agent. Just because a Realtor is your friend, or just because your parents have used him or her for years, does not make that person the right Real Estate Professional for you. Know your communication style. Ask some tough questions. Even have them pull some Scottsdale listings for you before you commit to having someone represent you in the biggest purchase of you life.
Direct from the article:
Buying a home is a big decision, so make sure you trust who's leading the process. "Talk to coworkers, friends and family to get [Realtor] recommendations," Larry Nelson, president and co-owner of Cornerstone Realty, advises. When talking to prospective agents, it's important to ask the right questions. Everything from, "Do you specialize in the areas that I am interested in?" to, "Do you really want to work with me?" are fair game.
Other important tips for first time buyers:
- Closing Costs: These can raise the amount of money you'll need to pay at closing, and/or finance, considerably.
- Don't undervalue an appraisal. The entire nature of a purchase can change considerably based on one professional's opinion. Don't marry yourself to any set of numbers before you know how an appraisal affects them.
- Beware going-it-alone. The article draws an apt analogy: Just because many people, especially Millennials, have eliminated the travel agent when booking vacations DOESN'T mean they can casually dismiss the importance of a Realtor. Buying a home is a complicated legal process and full of complications. "[A Realtor] knows what you DON'T know." The Bradley Potter, PLLC Home Selling Team Does Not Charge any fees to their buyers. They negotiate all fees to be paid by the seller on behalf of a commission.
Read the article. link
If you would like to take a more in depth look at the financial side of things, Bankrate.com offers some common money mistakes that first-timers can make. There are some excellent tips here for first time buyers and repeat buyers. The one that resonated best with us was that first-time borrowers sometimes automatically borrow the largest amount they are approved for, without thinking of the effects on their budget. This act causes one to become house rich and cash poor, meaning all your pay check is going towards paying the mortgage each month.
"A lot of first-time buyers are optimistic about the future and excited about buying a home, so they borrow the absolute maximum they can afford instead of allowing themselves wiggle room for a partial loss of income or for future expenses such as children," says Michael Harrison, area director for MetLife Home Loans in Southwest Ohio.
It is very likely that there will be a home that you like that meets your needs and wants at a price that does not drain your wallet each month. Scottsdale Home ownership should not feel like a giant ball and chain holding you down.
The full Bankrate article is helpful, and can be found here.