Whether you’re selling a first home, buying your dream home or getting into the international real estate market for investment purposes, there are some common mistakes to avoid if you want to execute a transaction that makes financial sense.
Unrealistic expectations. Let’s say you find the La Quinta ranch you’ve been dreaming of and you qualify for a loan—does that really mean that you can afford it? Don’t make the decision to buy real estate just because a lender pre-qualifies you. Do the numbers and determine if you can truly afford all the associated costs, from closing costs and homeowners insurance to upgrades and HOA fees, if applicable. Then create a budget that truly reflects all of your bills and leaves room for a contingency fund and the amortization of a new home. Only then will you be able to determine if you can actually afford the property.
Want vs. Need. Let’s be real—there can be a huge discrepancy between what you need and what your dream home costs. Make a list of all your family’s needs and then look for a house that fulfills them. Give your agent or realtor a copy of the list. The same goes even if you’re investing in the international real estate market—even if you don’t plan on living on the property, you will have certain needs in regards to budget, maintenance and location.
Only visiting once. If you’re ready to spend your hard-earned money on a La Quinta ranch, don’t just visit once. You should schedule several visits to the home before you make an offer, and get professional opinions, if necessary. Buying real estate and living is similar to a relationship—and you wouldn’t get married after just one date. You’ll want to get a good feel for the community, the school system, the commute and anything else that is important to your lifestyle.
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