Do not Listen To This Advice! The Worst Advice Home Buyers Get

If you want to buy a house you will have people pull you aside  and try to give you some advice, they mean well of course. They are your friends and family and they want to pass their pearls of wisdom to you. After all, they have been there, done that.

Nonetheless, you should never listen to anyone who is not an expert!

We know very well of course that they are only trying to be helpful, but just because people have an opinion does not mean that they are informed. And when it comes to buying a house, you need informed advice.

So to keep you from jumping into the real estate market armed with well intended but utterly wrong advice, we have gathered here the worst advice home buyers have heard, and we will explain to you why you should not listen to it.

Wait! Prices will go down.

Why people may say this:

The predictions have been going on for years: The housing bubble is going to burst again. Income is stagnant. Prices cannot stay high forever.

Why it is bad advice:

Sadly, we cannot predict the future. Of course prices may go down, but they may go up as well.

So if you want or need to buy a home, the time is not some day, it is now, regardless of future predictions that may or may not come true.

Make a very low offer then negotiate.

Why people may say this:

A lot of people believe that negotiations can cut the price by half, or even more, they live and die by this rule.

Why it is bad advice:

While negotiating is always a good idea, making an unreasonable offer may end up costing you the deal before you even start negotiating. It often starts negotiations off on the wrong foot with the seller.

So check market price and make a reasonable offer, just a little bit less than what you are willing to pay for this house.

This way, you leave some room for negotiations without antagonizing the seller.

Never pay full price.

Why people may say this:

Some people view the process of buying a house as a challenge between the seller and the buyer, if you pay full price the seller wins and you lose.

Why it is bad advice:

Of course you do not want to buy an overpriced house, but sometimes the house is well worth the required price.

So this is completely circumstantial, check the market price first and then inspect the house thoroughly.

If you find that the price is reasonable then paying full price might be the only way to get the house, especially in a seller’s market.

It is ok to get a smaller house in a better area.

Why people may say this:

People will give you advice according to their priorities and not yours.

Why it is a bad advice:

No one knows your family’s needs like you do.

So if you know that you need a three bedroom house then find that, in the best area you can afford a three bedroom house.

Stretch your limits if you really like this house, money comes and goes but you will live in this house for a long time.

Why people may say this:

Who does not want a bigger and better house?

Why it is a bad advice:

It is always wise to live slightly below your means, since you never know what life might bring you.

A financial crisis such as a layoff or medical problem may throw you of-track if you are not well prepared.

So buy the best house you can afford, with emphasis on “You can afford”.

You do not need to inspect that house, it is a new construction.

Why people may say this:

People assume that just because the building was recently built everything in it must run perfectly.

Why it is a bad advice:

Not all building companies and contractors meet the appropriate standards.

So you should always inspect the house you are about to buy, new construction or not. You may decide against buying the house altogether or just decide to make a few changes before you move in.