Home buying is considered by many to be an enterprise that can be accomplished just as well alone as with the help of professionals, but that is definitely not always the case. There are mistakes that can be made, and they are often costly. At the very least, it will serve a buyer well to become familiar with common mistakes that are made in the process of buying a home in San Diego. The following examples include some based on specific incidents that have occurred, though all represent common errors.
Overlooking Important Contract Details
In putting his house on the market, a seller fully discloses that the home had previously been infested with termites. The buyer's intention to include a credit for possible future costs is forgotten when a contract with the seller is drawn up. After the paperwork is already completed, the buyer insists on including the credit. The buyer mistakenly assumes his error will be corrected because the seller does not want to put his house back on the market. The seller has no obligation to reduce his expected profit and opts to sell the house to someone else, rather than change the original contract. In the end, the seller finds a new buyer, leaving the first potential buyer with regret.
Failing to Consider Future Re-sell
A buyer who is also a bicyclist purchases a home that has no garage because he figures he will lease garage space, as needed. A few years later, when the market is less competitive, potential homebuyers don't even consider his home because of the lack of garage space. Although a leased garage is an option, buyers know it isn't a guarantee of a long-term solution. The home seller is stuck with the property or with selling at a significant loss.
Buying with a Minimal Down Payment
Lender requirements can be restrictive, but a homebuyer takes advantage of the opportunity to buy a home in San Diego with only 3% down. As a result, he has a very small amount of equity in his home. A much better job opportunity in a different state comes along within two years, and the man has no choice but to take a huge loss on the home because of lack of equity combined with closing costs.
Failing to Factor in Additional Costs
Being a homeowner in San Diego and being a renter are not the same; and when some people make the switch, they are unaware of some important differences. As an owner, a home comes with closing costs, property taxes, maintenance costs, and higher utilities. When all monthly costs are factored in, homebuyers often find that they are unable to afford the mortgage plus monthly expenses.