Bright eyed buyers

The trend of our amazing lending rates continues! 30-year fixed-rate mortgages are hovering right around 3 percent and 15-year fixed-rate mortgages are an astonishing 2.39 percent. To make a long story short, this is clearly a great time to borrow money for a home. But before you start throwing money at the first for sale sign you see, let's take a peek at how to spot a great deal.

One of the biggest frustrations we hear from first-time home buyers and seasoned buyers alike is the long, seemingly drawn-out process of getting from showing to closing. Once the buyers have made the decision to take that step and purchase a home, there seems to be road blocks at every turn and the temptation is to want to skip a few steps in hopes of moving things along. Here are a few pitfalls that can both cause the process to slow down further, but more importantly, can allow a perfect home to slip through your fingers. Just like with running, skiing, boxing and many other facets of life, we need to slow down to go faster.

Not seeing beyond the wallpaper is one of the more common mistakes new buyers make. To be perfectly honest, this is a favorite of mine since it tends to leave more opportunities for those of us who have learned this lesson. "When buyers walk into a house and are turned off by paint choices, carpet condition or even unpleasant smells, they are missing out on the real (or potential) value of that home, notes Badger Real Estate agent, Kevin Killourie.

Taking the time to look beyond the cosmetic issues will allow you to see the full potential and evaluate the home as it truly is. Paint, carpet and wallpaper can be remedied with a long weekend and some elbow grease. I’ll admit I battled with some awful pet smells in a former duplex, but it paid off in the end. Most of my competing buyers didn’t get past the entryway of the home for that reason alone. I was able to rid the place of the smell, add some brighter paint choices and turn what most considered an undesirable home, into a marketable investment property.

If this really is your first time buying a home, get yourself an expert agent. A good agent will have access to the history of the home and can likely shed light on the unseen potential or pitfalls of any given property. Anyone can click around the Internet and print off data sheets, but a qualified, local agent is far more valuable than a piece of paper. Oftentimes agents also know about a home that you would have passed right by online, but is actually exactly what you are looking for. Best of all, working with an agent to buy a home will normally not cost you a dime. Confirm the agency relationship with your agent before you get started and you’ll be pleasantly surprised.

Always stick to your guns. Often when we get excited about a big purchase and certainly about the prospect of moving into a new home, we lose sight of what was important to us. If a three-bedroom is what you were after and you become enamored with a quaint 2 bedroom with that amazing view, remember that you wanted that third bedroom for a reason. It is OK and even a good strategy to allow yourself to be flexible on smaller, less important items. Make a list of non-negotiable items and hold steady to it. You may have to pass up on a few good deals, but you will be thankful when you finally reach the closing table.

Look beyond the end of your nose. I can hear my mother saying that to me after having just spent an inordinate amount of money on Fun Dip and gummy bears. In my defense, I was only 35 at the time! When you are evaluating a home, look beyond its condition and surroundings today and explore what the future may hold. Your agent may know about some future projects or developments. The town offices will have information on future plans as well. Make note of the traffic patterns and drive around at different times of the day to get a clear picture of the area. Of course we can’t predict the future, but a little detective work can go a long way.

Last, but not least, don’t skip the inspection. I wish I made a commission on all the times I’ve encouraged people to get inspections. Most of us are not construction experts or structural engineers. Relying on a professional for this stuff is just good business. I worked as a mechanic for a year but I still bring every potential car purchase to Tim, my former boss, for his evaluation. Sure I can find my way around most cars and can fix a multitude of problems, but his 40 years of experience are so much more valuable than any “good deal” out there. The same is true of your house. Let an expert look “under the hood” and give you a little peace of mind before you lay out your money. While there may be things that don’t pass the inspection, at least you will be able to make an informed decision on what you want to repair.

Buying a home, for yourself or even as an investment, is a huge deal. You won’t catch all of the problems and you may even hit a pot-hole or two along the way. But slowing down and taking the process a little more methodically is always a good idea. You’ll avoid more of the pitfalls, you’ll save yourself a few headaches and you might even find something you wouldn’t have otherwise seen. These crazy mortgage rates won’t last forever.