Have you noticed how many books there are on the market right now heralding the power of “screwing” up and “not giving a ‘you-know-what’” about something or other? Self-help authors are championing failure as part of personal growth — telling us we need to fail multiple times in order to succeed.
This theory is true under certain circumstances, of course, but not when it comes to buying real estate. I’ve yet to see a book called The Hidden Benefits of Totally Messing Up Your Real Estate Purchase, despite the catchy title.
Messing up a real estate purchase isn’t something you want to do once, let alone repeat. Chances are it will be expensive and life-changing, and not in a good way.
So, how is it possible to mess up a real-estate purchase? I’m glad you asked. It could include doing things like:
- Choosing not to use a real estate lawyer. You should be in contact with a real estate lawyer during every step of the purchasing process, including before you sign any legal documents.
- Deciding not to thoroughly check out the neighbourhood you’re buying in BEFORE you sign on the dotted line.
- Not seeking out an accredited, reputable mortgage broker, lender or banker and not getting preapproved for a mortgage before home shopping.
- Not figuring out how much of a mortgage you can actually afford and deciding to put a down payment on a home anyway.
- Not understanding what a down payment involves and thinking you can just borrow money for one.
- Underestimating the real cost of buying, selling, moving and operating a home.
- Not researching the reputation of the builder you’re considering buying from.
You get the picture. Instead of setting yourself up for failure, do your homework. By compiling a team of real estate experts and getting the info you need to succeed, you can close the book on failure.