Not doing your homework.
Knowledge is power. Tremendous information is available on the
Internet. There is no excuse for entering the market unprepared.
Trying to make a shrewd
investment. People need to buy based on what fits their
family. Don't try to guess what will happen to the market.
Choosing a poor location.
Even within a neighborhood, location matters. Is it on the busiest
street? Is there a shopping center out the back window?
Overlooking an inferior
floor plan for an attractive exterior. It may have gorgeous
curb appeal, but you don't live on the lawn. No matter how attractive
the exterior, you need a livable home.
Overlooking how the
house will function for your family. How do you really
live? Do you really need a formal dining room and living room?
Would you be happier with an eat-in kitchen and a great room and
a den to use as a home office? The house only needs to fit one
family -- yours.
Not having the home
properly inspected in a resale. This is not the time for
surprises. Get an inspection from a qualified, respected professional.
Not checking out the
builder's reputation on a new home. Talk to three or four
people who live in the builder's homes and see what they have
to say. If one builder did all the houses in a neighborhood, talk
to the residents and get their input. (It's also a great way to
see what your neighbors would be like.)
Not getting what you
want because you're impatient. This is a big decision.
You need time. Impatient decisions can lead to mistakes.
Waiting for a better
market and interest rates. Warren Buffett says the rear
view mirror is always clearer than the windshield.
Not buying at all.
If you can afford a home and you don't make that purchase, you'll
lose the benefit of tax deductions, building home equity and the
appreciation in value.
