This was a great little blog spot that I happened upon on this snowy morning here in Virginia Beach.  My kids are out of school and my Husband was able to take the day off to be with them.  With coffee in hand, I dive-in to catch-up on all my "reads."  This one I really liked and thought you might too.  Enjoy!

The Top 5 Mistakes Made in the Home Buying Process - and it's Not Always the Buyers Making the Mistake

This post was inspired by Bob Stewart and summarized by William Johnson 

We all have made mistakes in the way we first go about fulfilling the desire for owning a own home. (Notice, I didn't say the Dream of Home Ownership - taking care of what you purchased is not exactly my definition of a dream). I have read so many lists on this subject and thought I would formulate my own lists that is a bit more reality based.

1. The first mistake, in my view, is confusing price with value. Price is a term we mostly understand. It is what the item costs. Sometimes the price is even negotiable. Value is a whole other issue that needs to be explored. The right home in the right location, at the right price - one that can be readily maintained and even improved, is probably a good value.  A first time home-ownership question immediately comes to mind; should I buy a home that is large enough to account for a future family or buy something more modest that suits my needs in the shorter term? Obviously, this question should be answered on an individual and case-by-case basis. There cannot be a stock answer to this question as the answer will be different for every Buyer. Value is better defined as getting the right property that satisfies the right needs at the right time. Trying to find your buyer the right floor plan in the right neighborhood in the right condition is a good start. 

2. Too much time is spent looking for real estate before the professional REALTOR® is selected. A Realtor will help the Buyer through the home purchasing journey, exposing the right property that suits their needs. A listing of a home on the computer can be out of context to the neighborhood that it is in, causing it to just be a house on a random street. I think it is far more useful to engage a professional Realtor from day one when the decision is made to buy a home. A good REALTOR will save a Buyer so much time and will assist the Buyer understanding the nuances of the housing market.  They will guide the Buyer to the best choices that fulfill the needs and wants that a Buyer has listed as a priority, including price versus value.

3. First time and even second time Buyers often use the word "fixer-upper" when  they really mean "we can do the re-painting and maybe even complete some other minor upgrades." If a Buyer says they would like to buy a fixer-upper their Realtor needs to ask what defines a "fixer-upper" to them.  The Realtor should not assume that the Buyer can handle or afford renovations, regardless of how simple the task, at hand, appears. How easy it is to complete repairs or upgrades depends on the abilities of the person who is actually going to undertake the task.  Many times the difficulty and expenses associated with these types of projects can be underestimated, leaving that buyer at risk. A great Realtor will communicate thoroughly to help their clients understand exactly what it is they are getting in to. 

4.  If a real estate professional is not willing to spend the time teaching a new buyer the ins and outs of buying and the true cost of home-ownership is not creating a long term client. It is necessary to spend as much time as a Buyer needs to counsel them in the ever-changing-ways of the real estate market.  It is our job as Realtors to navigate them through the process that is unfolding before them.   

5. The amount of home that a Buyer can qualify for is not often what the Buyer can actually afford. Lenders make loans and we have seen the consequences of Buyers being facilitated to purchase homes they were able to buy but could not easily afford to own or maintain. Taking Buyers to the threshold of their maximum purchasing price that they  qualified for can lead to some serious consequences down the road.  Keep in mind, that it is not always connected to missing or making late payments. It often revolves around the true cost of home-ownership and maintenance. A home not properly and constantly maintained & improved is a home losing value while the costs associated for paying for it, keep rising.  Fortunately, due to lending restrictions and folks being more realistic of life's possible outcomes, home-ownership in the future can be for a life-time not just a period of time.