Union County Realtor Offers The Top 10 Mistakes Made By First Time Home Buyers

Westfield, NJ - Westfield local, Michelle Pais is a force to be reckoned with in the real estate business.

Pais has been a realtor for 15 years and six years ago became the Founder and CEO of Signature Realty NJ in Springfield, which serves Union, Somerset and Essex counties.

Pais personally sells about 100 homes per year.

And with that much experience in the real estate field, Pais is looking to pass on her knowledge to first time home buyers.

Here are top 10 mistakes first-time home buyers make:

1. They don't know what they can afford: Home buyers should get pre-approved before they even start looking. First time home buyers tend to fall in love with a home and then overpay or find out later that they can’t afford the home they fell in love with.

2. They don’t do their research ahead of time: First time home buyers often set their eye on a home only to find out later, after starting the paperwork, that there are problems. Buyers should do neighborhood research ahead of time and ask questions about the school, transportation, and community.

3. They don’t make a list of non-negotiable items needed in their future home: Buyers should have a brief list of non-negotiable items they need included in their home. Is the master bedroom with a master bath really needed or are you willing to settle on having one bath? Have a list ready to show your real estate agent so you're not wasting time seeing homes you'll never buy.

4. They hesitate on good deals: Some home buyers get pre-approved, find a home that fits all of their needs and then are afraid to pull the trigger. Maybe they feel they haven't seen enough homes or that a better option is out there, whatever it is, they hesitate. Depending on the city, first time home buyers typically can take 2-4 months when they start looking to settle. In that time, interest rates can change and the marketplace sees a lot of turnover. When a buyer finds a good deal there is no time to hesitate.

5. They let an opinionated home inspector or attorney make their decision for them: When a first home buyer finds a good deal, but are addressed with a few minor issues, they should get a contractor quote or second opinion before walking away from the deal. “I found one client a phenomenal deal that was listed under market value. When they had the home inspection, a couple of minor issues came up. Instead of hiring a contractor to get an opinion on correcting the issues, they were scared by the home inspector. They killed the deal only to find out later the house closed for $25,000 over their original offer."

6. They don’t pick the right realtor: The right realtor will make all the difference in finding your perfect home at the right price. First time home buyers often don't do the proper due diligence on an agent. A big mistake is going with an agent whose full time career is not real estate. It’s very easy to get a real estate license. There is a big difference between being licensed and being professional. Buyers should ask realtors how many homes they have sold in the last 6 months.

7. They don’t calculate expenses: First time home buyers should figure out the benefits of renting versus owning. There are many advantages, not to mention tax savings alone, in home buying but depending on your area, renting could win out.

8. They don’t know the cost of making improvements: It’s good to have a realtor with contractor knowledge or vendors to find out what deals can be had to make improvements on a home. Many buyers may get overwhelmed on updates but should be open-minded. First time home buyers should know they can get a rehabilitation loan to help cover expenses. They think they need all the capital upfront, but are unaware that programs like these exist. Your realtor should also be aware of these programs.

9. They make other purchases before closing: First time home buyers may be so excited that they shop for furniture for a new home before closing. They don’t realize that the purchase of additional items is looked at in the debt to income ratio. This may change their bank loan and may no longer allow them to qualify for a mortgage.

10. They don’t know the importance of terms: Price and terms are both equally important. First time home buyers sometimes think price is the only major factor but terms are just as important. Closing date, the down payment amount, and any stronger terms are needed when negotiating. A great down payment, figuring out the closing date, and finance is key.

For more information on Michelle Pais visitwww.signaturerealtynj.com

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