April 25, 2014 / By Trusst Builder Group
Despite its market troubles in recent years, real estate is still one of the best investments people can make. Thanks to historically-low interest rates and below-average prices, more and more people are taking advantage of the times to purchase second homes. However, what many don’t understand is that they may be making one or more key mistakes that can impact their results.In this month’s blog post, Trusst home builders in Wilmington NC share ten mistakes to avoid when buying a second home.
#1: Putting Off the Purchase
The real estate market is a gamble. One day, you can hit it big and the next, you can lose it all. So, when you see a property that fits your needs and budget, you should make an offer on it. Putting it off with the hopes that the owner will reduce the price or that interest rates will drop even further will result in someone else buying that property.
#2: Listening to Friends
If you have friends that want you to move near them, or if you want to live near your friends, then odds are your friends are going to try and convince you that their neighborhood is inexpensive, safe, and a good bet. Don’t rely on your friends’ information. Instead, research the area yourself and hire a professional to help you determine which properties best meet your needs.
#3: Failing to Consider Re-Sale Value
Many people buy a second home with the intention that the home will be the last they ever buy and as such, the property’s re-sale value is not considered in their decision. But, life has a funny way of changing one’s plans and if you need to unload the house in the near future, you want to be able to do it. Therefore, make sure re-sale value is always a consideration before purchasing a second home.
#4: Not Getting Pre-Qualified for a Mortgage
Getting pre-qualified for a mortgage amount is almost a requirement these days. It is also something that every prospective buyer needs to do because it gives you a realistic number to work with in terms of what you can and can’t afford to spend on your second home.
#5: Failing to Consider What You Truly Need in Your Home
When you are looking for your second home, you should take an account of your life now and in the future so you can make the best purchase decision possible. For instance do you plan on having more kids or do you have older children who will be moving out soon? Do you have a pet that requires a large yard? There are other considerations to keep in mind than just the home’s beauty and location.
#6: Making a Decision Based on the Current Owner’s Lifestyle
If you look at a property and you can’t stand the owner’s choice in paint colors or decorations, you have to be able to look past all of that because their decorations won’t be there when you move in and you can always re-paint. Making your decision based on such things will strictly limit your options.
#7: Not Learning About Community Deed Restrictions Before Buying
Some communities have firm restrictions about everything from how many pets you can have to what colors you can paint your home’s exterior. Failing to find out in advance about such rules and regulations will help save you a lot of frustration in the future.
#8: Buying a Home in a Community with Amenities You Don’t Need
If the community you are interested in buying has a swimming pool, a clubhouse, golf course, or other luxurious amenities, you should only buy if you are interested in utilizing those amenities. The reason is because those amenities are paid for through your home’s price and/or monthly association fees and if you do not plan on using them, then you will be paying more for your home than you really need to.
#9: Waiting to See the Finished Home Before Buying
If you are considering purchasing a home in a new development, sometimes the actual home may not be built yet. Waiting to see the actual home will usually result in someone else purchasing the lot first. Having the foresight to look at the floorplans and listen to the advice of the builder and designers will help ensure that you don’t miss out on buying the best lot at the best price because as the development grows, lots will become fewer and prices will go up.
#10: Wanting to See “Everything That’s Available”
With thousands of resale homes and new homes being introduced to the market every day, you will never be able to see and compare them all. Write a list of your wants and needs and get pre-qualified and use that to information to help narrow your choices. Then, once you find the ideal home according to your data, put in an offer.
Contact Trusst Builder Group Today for a Consultation
Trusst Builder Group home builders in Wilmington NC are experienced, reputable, and one of the most trusted builders in the state. We have professionals who can help you get the home you have always dreamed about. Whether you want to buy a new home in one of the luxury communities we build in or you want a custom built home of your choice of property, Trusst has an incredible selection of customizable floorplans you’re going to love. Call us today at 910-371-0304 to schedule a professional consultation. We can help you avoid the common mistakes made by second home buyers so you can enjoy greater value and satisfaction in your new home.