A NEW homeowner made a $30,000 mistake on a $180,000 purchase – but it could’ve been avoided.
The owner reached out to the money advice column Pay Dirt by Slate to explain their very expensive purchase.
They recently bought a mobile home for $180,000 with a traditional loan and 20% down.
The buyer claimed that the seller did not report any structural issues.
But there were – lots of them.
In fact, the buyer noted that the house is essentially splitting in two.
When it was purchased, the mobile home looked like a brick and mortar because of so many additions, but after closer inspection, flaws were easily spotted.
The owner detailed how there are at least $30,000 in repairs just to keep it standing.
Some damages are said to include an inch-wide crack in the floor, a buckling roof, the subflooring needs to be replaced, there are broken doors and uneven flooring.
“The heat pump just died, too,” they added.
One thing the writer detailed is how their real estate agent did not recommend an inspection.
Because of this, there was no report of structural damages that a home inspection definitely would have caught.
When the buyer tried to back out of the purchase, their agent strongly urged them to reconsider.
Passing on home inspections is actually becoming a much larger mistake that most buyers are making.
Columnist Athena Valentine pointed out that because the housing market is so hot, many buyers are ditching the inspection as a way to outbid other buyers.
It’s problematic but very common.
Real estate expert Tom Brickman, who goes by The Frugal Gay, offered this homeowner three possible scenarios: sue, sell or stick with it.
“You have learned a very hard lesson now before you venture into possibly acquiring more costly real estate later on in life,” he added.
How to avoid similar homeowner mistakes
Be your own realtor.
The process of being your own realtor is not easy, especially if you don’t have their resources.
Although, it can be done with some hard work.
Here are a few things to consider if you take this route:
- It’s a considerable time commitment
- Don’t skip the inspection processes
- Find access to the competition
- Properly market your home
- You may still have to pay fees
- Learn how to properly negotiate
Another thing to inspect are your funds.
At the beginning of 2022, 81% of homebuyers couldn’t afford half the homes for sale in their markets, economists from the National Association of Homebuilders reported.
As housing affordability continues to climb, it’s important for potential homebuyers to be sure they have the proper funds before they purchase.
Additionally, potential buyers must be prepared.
Patrick Duffy, founder and chief economist of MetroIntelligence, told The Sun that preparedness is one of the largest missteps homebuyers make.
“Polls have shown buyers not being prepared for the true cost of homeownership, buying homes they don’t like after moving in,” he added.
He added that if a big decision is made in haste, it’s often followed with regret.
First-time homebuyers could get up to $10,000.
Plus, here are four mistakes made by homebuyers and sellers in today’s housing market.
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