Top mistakes real estate buyers make.
You’ve heard the expression “he knows enough to be dangerous”? Real estate buyers don’t purchase and sell daily like a season agent or broker does. Being in lots of very different real estate markets helps educate the professional. You never can say “you’ve seen it all”.
Listing, marketing, selling Maine real estate makes everyday a training lesson. I’ve been learning for 45 years and still don’t begin to know it all from past Maine real estate sales.
So know you are busy, time to quickly deliver on the top mistakes real estate buyers make from my observations.
Before falling in love with a house, get a local lender to provide your local Maine bank mortgage loan qualified letter. What happens if you put the cart before the horse?
Hear it a lot, all to often.
“I’ll get to the bank once I find a house I like”.
In this fast paced seller’s market with low inventory and fast hop on and quickly off the market listings, you snooze you lose.
By the time you get the pre approval for a house bank loan mortgage paperwork, what you wanted is sale pending, under contract. Gone.
(Sigh of sadness for the one that got away that you really could see yourself living in and loving the “home sweet home”.)
Here we go, the list of top mistakes buyers make when in the market to buy real estate.
Not Getting Pre-Approved for a Mortgage
- Why it’s a Mistake: Without pre-approval, you may not know your true budget, which can waste time and make it harder to negotiate. Things on your credit can keep you from buying and take time to get removed from your report.
2. Ignoring the Total Cost of Ownership
- Why it’s a Mistake: Buyers often overlook ongoing expenses like taxes, HOA fees, insurance, and maintenance, which can strain finances over time. You mean I have to heat the place, mow the lawn. It’s not like living at home anymore?
3. Skipping the Home Inspection
- Why it’s a Mistake: Forgoing an inspection to speed up the process can lead to hidden issues that result in costly repairs later. In small town rural Maine, the home inspection can be as easy as buying a bag of fresh local donuts from Sadie’s Bakery. A holder of just brewed coffee just the way your three brothers and one cousin like it. One brother is an electrician, another a plumber, the other a carpenter. And you are have shingled a garage roof or two. Are anything but helpless and have skills from life experiences.
4. Focusing Too Much on Aesthetics
- Why it’s a Mistake: It’s easy to get distracted by decor or fixtures, but buyers should focus on structural integrity, layout, and functionality. Looking beyond the color scheme and know no house is painted to your liking. Consider area, condition over trendy wall hangings saying “Live, Love, Laugh”. If the price is right, and you get to stop renting. Consider the starter house where you probably won’t be living there forever.
5. Underestimating Closing Costs
- Why it’s a Mistake: Closing costs are typically 2-5% of the purchase price. Not budgeting for them can lead to unexpected financial stress. But using local lenders, a lawyers in the smaller real estate market can seriously reduce the costs. Plus instead of a who knows where title company saying here’s your bill, we checked your title, it’s all good. The local lawyer spreads out the forty year Maine real estate title search. Provides the survey map on the property to the east, another for the one to the west. You get a lot more information for less when the title search is done by someone who lives in the area where the registry of deeds is located in Maine. The local lawyer just has to do a continuation or update on the master abstract he or she has already built.
6. Overstretching Your Budget
- Why it’s a Mistake: Biting off more than you can comfortably afford can make home ownership stressful and risky, especially in emergencies. Buying below what the bank says you are approved for makes sense. For the what if my transmission falls out of the car or I need a filling, my dog requires an operation, etc. Maine is famous for living below your means, saving for a rainy day unexpected event.
7. Being Swayed by Emotions
- Why it’s a Mistake: Falling in love with a property can cloud your judgment, leading to overpaying or overlooking potential issues. Buying to impress your friends is less common in small rural Maine. Practical happens. A new roof, updated heating system and garage trump the quartz counter tops, subway tile, an in ground pool. Being in by the holidays, having your own place. Pretty picture but like the NASA moon launch. Make sure all systems are go. Go down through the real estate check list with a qualified Maine broker or agent you trust. Take your time before blast off happens in the count down sequence.
8. Ignoring the Neighborhood and Location Factors
- Why it’s a Mistake: The location affects quality of life and resale value. Buyers should research schools, crime rates, and proximity to amenities. Maine is the 4th lowest crime state and dead bolts, door chains are not so standard equipment like population urban area demand. Maine is a handful of cities, 480 small rural towns.
9. Skipping Comparisons and Negotiations
- Why it’s a Mistake: Not comparing similar properties or negotiating the price can mean paying more than necessary. Taking your time, doing your “home work” and not rushing into the purchase. Not regretting later buying something you liked but were not in love with it is a very costly mistake to make.
10. Not Considering Resale Value
- Why it’s a Mistake: If the property has limited resale appeal, it may be challenging to sell when you decide to move, potentially leading to a financial loss. Everything you do to the place is not necessarily something the market rewards you on during a resale. Consider the list of what new real estate buyers hunt for and will pay extra for take study of the local market traditions. Over improved properties sit on the market if over priced, if stick shock bloat happens.
11. Taking Out an Adjustable-Rate Mortgage Without Understanding It
- Why it’s a Mistake: Adjustable-rate mortgages can start low, but rates may increase, leading to higher payments that can strain finances. How long do you plan to be in this home, is it worth paying points, etc. Talk and trust your local Maine bank lender with answers to those questions.
12. Choosing the Wrong Type of Mortgage
- Why it’s a Mistake: Different mortgage types have varying terms and eligibility criteria, and choosing the wrong one can lead to unnecessary costs. Like ice cream, there are lots of Maine mortgage bank lending loan products to try on for the best custom fit.
13. Relying Too Much on Online Listings
- Why it’s a Mistake: Online listings are a starting point, but they can be inaccurate or outdated. It’s essential to see the property in person. Videos, not slide shows can really help you get in from the curb to check out more listings no matter what time of day or night. Weather or distance away does not stop the show time either. Videos for real estate are a big bonus when Maine house hunting and researching a new community in “Vacationland”.
14. Not Saving Enough for the Down Payment
- Why it’s a Mistake: Putting down less than 20% often results in PMI (Private Mortgage Insurance), which increases monthly payments. For years it was save 25% of the Maine house purchase price or keep renting Chummy. Less foreclosures, not so many repossessions happened when you go without and scrimp, save and when the focus is “I want to start owning, stop renting” strong like hunger or thirst. Made life and death important.
15. Ignoring Market Conditions
- Why it’s a Mistake: Buyers should consider whether it’s a buyer’s or seller’s market, which affects prices, competition, and negotiation strategies. Not finding the right house, could you consider buying land and building? Or living in a mobile short term that gets sold off, the proceeds put into your new Maine home going up slow cooked style behind it? You do what you have to and have patience, perseverance to get the house of your dreams right? Have that kind of determination and grit or impulse control?
16. Failing to Account for Commute and Transportation Costs
- Why it’s a Mistake: A long or costly commute can reduce the attractiveness of a property and add to overall expenses. Sure the house for sale was much lower than where you work, the kids go to school. But traveling 75 miles each way to get a happy meal or visit Wally World is going to cost you more in vehicle wear and tear, gas and time. Property insurance is higher when no fire department. And resale is harder when remote locations and no jobs are what your next Maine real estate buyer is looking at.
17. Not Having an Exit Strategy
- Why it’s a Mistake: If your life plans change, you might need to sell or rent out the property quickly. Always best advice to really consider properties with good resale or rental potential. Forever is not forever. Death and taxes are constants right? Consider the what ifs and take your time, think this house purchase in Maine through thoroughly. To avoid all the mistakes buying a Maine house listed above in the real estate blog post.
- One more bonus mistake you don’t want to make buying real estate in Maine. Is there a tenant or seller in possession at time of real estate closing? Do you want to inherit that tenant, share the place with them after the real estate closing? Didn’t think so. Empty, the no one in possession before you close pre closing inspection is way better than hiring an attorney to evict whoever if at the property after you close. Saves time, money, aggravation and future damage at your new Maine real estate property house or whatever kind listing.
By being mindful of these common mistakes, buyers can make more informed, strategic decisions in the Maine real estate process.
Here for questions. Please reach out, let’s connect. Thank you for reading through the Maine blog post on mistakes house buyers making purchasing a home. Forty five years of learning and counting.
Looking for a house in Maine? Start or retirement or Vacation house? Like to have some Maine land around your home property listing?
Get more land, lower price property to consider the deeper you go up into Maine in your real estate purchase.
Friendlier small town values, more outdoor in nature living and less people, less traffic, no gangs or drive by shootings. There is a lot to like living, working, playing in a small rural location of Maine.
Thank you for following our real estate blog posts.
Buying, selling, I’m here to help you see what’s for sale, to help you sell what your already own and learn about the local area if brand new to these part of Maine.
I’m Maine REALTOR Andrew Mooers, ME Broker
207.532.6573 | info@mooersrealty.com |
MOOERS REALTY 69 North ST Houlton ME 04730 USA
