At Carolina One, we deal with people that are looking for different things in the real estate they're interested in. Some are looking for family homes, and others are looking for vacation houses. We have people that are interesting in buying historic homes and others that want the newest structures possible. But despite the differences, there are some mistakes we see across the board. If you're looking for Charleston, SC real estate, try to avoid making some of these common home buying mistakes.
Listening to advice from non-locals
"My father has sold real estate in Virginia for 20 years, and he says that paying any more than _____ for a home is a rip off."
"My friend just bought a home in Columbia, and they only had to pay _____."
We hear variations of these phrases constantly during the home buying process, but a lot of the advice you get from well-meaning, non-local friends and family isn't applicable to the real estate you're looking at. Markets can vary drastically within the state, but the differences in price and expectations in out-of-state areas are staggering. Even people you know that have homes in Charleston might have paid very different prices, since there are a lot of different factors. When you're buying in Charleston, the only advice you should be listening to is from an experienced realtor.
Shopping before you get pre-approved
There is nothing worse than talking to a client that has a dream home in mind, and then seeing them crushed when they realize that they over-estimated the amount they would be approved for at the bank. Falling in love with a property you can't afford isn't just emotionally draining – it can also persuade you to try to take a big financial gamble on a house that isn't practical because you've already decided that it's the home that you want. Wait until you know what you're getting from the bank before you set your heart on a home, and while we're on that topic, we should talk about…
Going for the most expensive home you "can afford"
Your bank may have approved you for a half-million dollar mortgage, but that doesn't mean that you should get a home that requires the maximum amount. We don't have to tell you that banks can be very irresponsible when it comes to lending and mortgages, but too many people believe that if their bank approves something, they have to take it. Before you even talk to someone in the mortgage department, sit down and take an honest look at your financial situation. Base what you can afford off of what you're making now, and not what you hope to be making in a few years. That mistake is what gets people in over their heads on home costs. If you can't afford the mortgage now, then don't gamble on it.