Five Mistakes To Avoid When Buying A Home In Chicago

Five Mistakes To Avoid When Buying A Home In Chicago

CondoPotential home buyers can make informed home buying decisions they will feel good about for many years ahead by avoiding some basic mistakes. Home buyers sometimes purchase based on emotion and want instead of logical reasoning and practical need. That can lead to years of stress due to being strapped with monthly mortgage payments for a home they are unable to sell for what they owe.

Buying more than is easily affordable

According to the National Association of Realtor’s (NAR) Housing Affordability Index, Chicago’s affordability index is good. The NAR report indicates that a family with a median income for the area can easily qualify for a median-priced Chicago-area home if they have saved approximately 20 percent of the purchase price for a down payment. Saving enough for a good down payment helps lower monthly payments and keeps homeowners in a more stable financial position.

Not using a Realtor

With an agency agreement, the buyer’s agent has a fiduciary relationship with their client and is obligated to work in the home buyer’s best interest. An attorney for real estate will conduct a title search and let buyers know of any possible legal issues with the home they plan to purchase.

Not having proper inspections

Buying a home involves a lot of different steps and many of these steps cost the home buyer money. Some buyers try to lower their out-of-pocket expenses by skipping a home inspection. They may rely on a relative or their own judgment as to the home’s condition. A professional home inspector provides a thorough and objective analysis of the condition of the house and its components.

Not thinking about resale

Building the home of their dreams or buying based solely on their personal preference works fine for people who never plan to resale. Most people will be trying to sell their home within five to ten years. It needs to be a home that will compete well in the market and should have features that appeal to a large number of potential buyers.

Buying based on emotion

Homebuying is a business transaction. Many buyers get into trouble by getting emotionally attached to one of the homes they see. It is best to have a first choice, second choice, and ideally, a third choice before making and negotiating an offer. Buyers should always be ready to walk away from negotiations if the seller doesn’t meet their terms.

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