Five Things Buyers WISH They Had Known Before Buying A Home

With the Spring housing market heating up, buyers can get caught up in the excitement and often the frenzy of multiple offer situations, often leading to regret down the road. I've compiled the five primary surprises/concerns and things homebuyers wish they had known before making the biggest purchase of their lives:

1. Not Factoring In Unexpected Costs: Understanding home-buying expenses upfront can prevent unpleasant surprises down the road. When you are ready to purchase, you will need funds available for your down payment (0-20%), as well as funds for your earnest money deposit (usually 2-3% of purchase price; higher for pricier homes). BUT, don't forget:

   1. An additional (approximately) 2-3% of the listing price toward closing costs,

   2. Setting aside about 1% of your home value for property taxes EVERY YEAR,

   3. Annual maintenance costs (usually higher for older homes),

   4. Savings for big ticket items (new roof, new HVAC, new appliances),

   5. Homeowners' insurance,

   6. Earthquake/flood insurance,

   7. Homeowners' Associate fees, and

   8. Utilities.

2. Purchasing in the Wrong Location: While the house itself is important, the location can significantly impact your quality of life and the property's long-term value. While you may be working from home or hybrid now, will you be in 2-3 years? Consider factors such as proximity to schools, work, amenities, safety, and neighborhood dynamics.

3. Waiving Home Inspection: A thorough home inspection is CRUCIAL to uncover any potential issues with the property. Many buyers get caught up in a competitive market and forego the home inspection, only to regret this choice down the road. If you're buying an older home, don't forget the sewer scope as well. Sewer repairs often run into the five figures!

4. Future Needs and Resale Value: For a home to be a good purchase, it generally should be an asset that is held for at least 5-10 years. It's essential to consider not only your current needs but also how the home will serve you in the future. Think about factors like the size of the property, layout, and potential for expansion or renovation.

5. Mortgage Options and Financial Preparedness: Understanding different mortgage options and getting pre-approved for a loan can streamline the homebuying process and help you determine your budget more accurately. Many buyers wish they had taken the time to improve their credit score or save for a larger down payment to secure better mortgage terms.

By being aware of these factors and doing thorough research before buying a home, you can make a more informed decision and avoid common pitfalls in the homebuying process.