Mistake _6. Buying the Wrong Type of House

How you can buy the wrong type of house seems hard to imagine, but it’s a major reason many homeowners move. For instance, you love the picturesque look of two-story homes but find having a family room in the basement is not what you want. A ranch with an open floor plan is more what you really desire for family togetherness. Or you buy a home with the laundry room in the basement, and after awhile you find going up and down the stairs is a real pain. You need to look at how the house will function for your family. How do you really live? Do you really need a formal dining room and living room? Would you be happier with an eat-in kitchen and a great room and a den to use as a home office? The house only needs to fit one family—yours.
Sam and Becky made this mistake when they found a charming two-story house in a great neighborhood near Sam’s work. They were renting a home but wanted a place of their own. They made an appointment to see the home and immediately fell in love with the oak trim and crown molding, as well as the formal dining room and updated kitchen. The next weekend they took their three boys ages 5, 9, and 12 through the home. The kids loved the backyard with the big sycamores, but understandably they were not too happy to leave their neighborhood and school. But it was summer, so changing schools was not a problem.
An offer was made and accepted. Thirty days later the loan closed and Sam, Becky, and kids moved into their own home. They were excited and the first couple of weeks were fun. But then, the time came to register the kids for school, and Becky found out the school was two miles away, which meant the kids would have to ride the bus. She also found out that there were no families in the neighborhood with elementary school age kids for a possible car pool. It was a middleaged neighborhood that they soon found out they had little in common with.
It wasn’t long before Becky also realized that the formal floor plan of the two-story wasn’t kid friendly. They wanted to be near the kitchen where mom was, not downstairs in the family room or in the upstairs bedrooms.
About a year later Sam and Becky put the home up for sale and started house hunting again. This time they were determined to be a little wiser and do some homework before they jumped at a home with enticing curb appeal.
It’s important to put some thought into what your family lifestyle is and make a list of important things you want in a home. Don’t be swayed by a cute restored bungalow just like the one you grew up in, if a bilevel fits your family better. Every once in awhile take a deep breath and do a reality check when you’re out house shopping. Try to project what your needs will be in five to ten years from now. And don’t let awesome curb appeal sway you if the floor plan doesn’t fit your needs.

Mistake _5. Not Checking Out

First-time and experienced homebuyers sometimes fall into this trap. They see a house that pulls the right strings and pushes the right emotional buttons, and they buy. Overlooked is the neighborhood. Questions that should be asked but often aren’t include, ‘‘Are there gangs?’’ ‘‘Is there a neighborhood crime watch group?’’ ‘‘What is the age makeup? ’’ ‘‘Is it a transient neighborhood with a high turnover?’’ ‘‘How are the schools, and is the home on a busy street?’’ No matter how much you like your house, if the neighborhood doesn’t fit your lifestyle, you’ll be selling before too long.
Juan and Rita found this out when they bought a cute, renovated bungalow in an older neighborhood. They soon found out that their neighborhood had several teens who liked to race up and down the street, and three of the homes on their street were rentals. The yards were not being taken care of, and obviously the area was going downhill. Unfortunately, Juan and Rita were not using a realtor when they bought the house. They had driven by the home and noticed a ‘‘for sale by owner’’ sign. The sellers were an older couple who wanted to move to a warmer climate and offered them a good deal on the home. The buyers were so focused on the home that they didn’t even think about the area. To avoid making this mistake, spend a lot of time in the neighborhood before you buy. Check out the different ways you can get to the house you’re interested in. How close are shopping, schools, and other areas of interest? And finally, how quiet is the neighborhood at different times and on weekdays as well as on the weekend?

Mistake _4. Not Having an Exit Strategy

Many younger first-time homebuyers purchase one-bedroom condos, small two-bedroom homes, and PUDs. They don’t stop to think that in a few years their home will become too small when kids come along and/or their income increases. Too often, these smaller properties are hard to sell and accumulate less equity than homes with two or more bedrooms will.
Nick found this out when he bought a one-bedroom condo after he got his first job right out of college. Hearing that it’s better to own than rent, he visited a new condo project. Smitten by the amenities and lifestyle image the development offered, he bought one and lived there for two years.
After meeting his one and only, Nick got married and the couple lived in the condo for two more years; when a baby came along, suddenly, the one-bedroom became a tight fit. A bigger home soon rose to the top of their priority list and they started looking. There were some nice homes they could afford, but they would have to sell the condo first.
So Nick talked to a realtor and found out that because quite a few units were for sale, getting a buyer was going to be a slow process. To sell the condo, he would probably have to discount it close to what he owed because other owners had dropped their prices to rock bottom. The condo has been on the market a year now, and there haven’t been any offers. Nick is seriously considering renting it out if he doesn’t get an offer in another couple of months. As Nick learned the hard way, before you buy property, think about how long you intend to live there. Remember that the average homebuyer stays in the home about six years. So it’s important to do some what-if thinking before you commit.