Avoid These Three Common Mistakes When Buying A House In Minnesota
Despite recent economic uncertainty, the housing market in Minnesota continues to be red-hot. In Stearns County, prices continue to go up while supply remains elusive.
Minnesota Realtors says in Stearns County in March there were 211 new listings, down from 262 in March of last year. The number of new listings for the year to date is down 100 compared to the year before.
Meanwhile, the median price continues a rapid rise with the median sales price in Stearns County at $255,500 in March, up from $220,000 in March of last year.
If you are one of those folks in Central Minnesota searching for a home, Mike Gerdes of Frontier Real Estate is here to tell us the three biggest mistakes he sees people making when buying a home.
1. OPENING NEW CREDIT ACCOUNTS BEFORE FULL LOAN APPROVAL
"I see people getting pre-approved to buy a home with their bank and then take out a loan on new furniture or a new car and it kills their pre approval."
Make sure that all your ducks are in a row credit-wise before opening any new credit accounts. A pre-approval is just that... it comes before you are actually approved.
2. NOT HAVING A HOME INSPECTION
"In this crazy market buyers are electing to not have a home inspected which is not the best idea."
With such a fast-paced, cutthroat housing market buyers are feeling pressured to decide faster than ever whether to make an offer on a house. Opting to waive the home inspection can leave you holding the potentially large bill for any major or minor house repairs.
3. MAKING AN OFFER THAT IS TOO LOW
"The buyer writes such a low offer that it offends the seller and even though the buyer is willing to go higher the seller elects not to entertain the buyers offer at all."
Everyone wants to get the best deal on a home, but make sure that you aren't trying to get TOO good of a deal. It is a seller's market right now and most homes have no shortage of offers. While it is a good idea to negotiate, make sure that your offer is reasonable.
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