Most common mistakes that DFW buyers make (Dallas, McKinney: real estate, HOA fees)

[Snow-Flake]

- Buying a house in a poor school district (bad for resale)
- Do your research and find a good, experienced home inspector
- Not having an agent to represent you in today's market (whether buying, selling, or leasing)
- Getting carried away with the bidding war and paying more than you're comfortable with (buyer's remorse)

[HockDad]

Couple of thoughts:

1) if the house has been on the market for 6 months at a fair price, you will have a problem selling it when it is your turn to sell it in a few years;
2) real estate agents are worth their weight in gold- but do your research. Go to several open houses in neighborhoods you are interested in and meet the agents while they are trying to sell a house. Also, ask around. Don't hire your friend, sister, etc. just because she has a license. Get someone connected.
3) getting a great house up north is fantastic if you work in DT, until you realize that your commute is 1 hour each way and you never get to see your house in the light.

[jcl_cls02]

I suggest planning a budget and get what you can afford and stick with that number. Utilities, HOA, and insurance fees are high here and can provide sticker shock AFTER moving in. So make sure to factor in good buffer for cost living expenses into your budget. As others have suggested, the biggest mistake is buying far from work, and realizing its an hour commute which should be 20 mins for a 15mile drive. Also, plan on living in your home for at least 5 years if you're thinking of reselling (if your willing to break even). House appreciation fluctuates depending on market conditions and can take awhile to recoup or make a profit. A good realtor is also required when buying a home here as he/she knows the DFW market really well. Good luck.

[TurtleCreek80]

1. Being in a rush to buy, either because you feel like you're "x" age and should own a house by now OR because you're moving to Dallas and don't want to go through the hassle (or "throwing away money") of renting for a year to get your bearings on neifhborboods, traffic, if you like the job and plan to stay in Dallas long-term, etc.

2. Working with a realtor who doesn't specialize in the area you want to live. Your best friend's mom or your company's generic relo agent may have no experience with the "xyz" market, even though they're well respected in the "abc" market. The best thing that person can do for you is find you a referral to the area you're looking in.

3. Number 2 goes along with this: the friend-of-a-friend who "dabbles" in real estate, only selling a few houses a year is a TERRIBLE choice, even if they offer to discount the broker fees and lower your purchase price. Hire a professional people. It's not worth saving a few thousand dollars if the sale gets botched.

4. Not researching ALL the costs of home ownership: property taxes, adequate insurance, monthly bills, expected maintance for HVAC, pools, etc over the long haul. Also, for those just starting out- the cost of furniture, window treatments, etc.

5. Assuming the city you live in is the school district you're zoned for. Or that the school you drive by is the one you're zoned for. School districts are called "independent" because they DO NOT follow town or county borders.

6. For relo's, getting carried away with how much "more" you can get in Texas. There's a reason why 4,000sf houses can be found for $200k here--> the land is cheap (outside of a few plum in-town areas) and expansive. Beware the additional costs to heat & cool and furnish a much larger home than where you came from. Also, beware the long commutes and toll roads.


5.

[AV8n]

1. Consider the layout of the house with respect to the distance of the water heater from the bathrooms and kitchen. The house we are renting has a split floor plan, and the water heater is on the opposite side from the kitchen and master bath. As a result, it takes several minutes for the water to get warm enough for washing dishes, bathing, etc., which results in a lot of wasted water.

2. Realize that school districts can be fluid, especially in areas that are still growing. Frisco homeowners are finding this out the hard way right now.

3. If you intend to park your vehicle(s) in the garage, try it out before you buy/rent. It was a surprise when we tried to park my truck in the garage only to find out it was a few inches too long, and wouldn't have fit in beside the car anyhow.

[adixyz]

- Falling in the trap of a "deal' by the builder and spending multiple times the rebates for the so called 'upgrades'.
- Not understanding the quality aspects of a good construction and what are upgrades? Differs for each builder.
- Buying a house far greater than your needs due to social pressure or ignorance.
- Buying without understanding the impact of upcoming development around the house specially for a new construction.
- Not knowing the "unknowns" and/or not asking the right questions. A good real estate agent matters specially if you are new to DFW area.
- Being too fussy about fulfilling all the needs and not compromising on some.
- Relying too much on general information / forum postings Vs rationally identifying your family needs and finding the right area/ match.
- Relying on assumptions that a house is good based on your country or other US regional preference like buying close to a highway or commercial or having a master bedroom on a particular floor. Exceptions apply but such preference may not be liked by many during reselling.

[BeanyMalone]

A lot of the advice in this thread, and it's good, pertains to a home purchase anywhere. Specifically for DFW, I would add:

1. Give yourself the time to find an area that is right for your family. There tends to be a vacuum that pulls people up the Tollway. There are many beautiful neighborhoods and wonderful schools that way, but there are equally good choices elsewhere that may be better for you. They just might take a little digging (and some self knowledge).

2. The commutes can be deceptive. If you have found an area you like, try the commute in rush hour if you have the chance.

3. Because the clay soils can cause foundation problems, factor an inspection by a structural engineer into your budget. You may not need one, but you may. 18 months ago, it cost me about $500 to get one. Money well spent.

4. There is lots of development going on all over. If you are focusing on a newer neighborhood with undeveloped land, find out what is being proposed. Others will know more about this, but in some of the western areas of the metroplex, there is natural gas drilling. It may not be an issue for you, but its better to be informed.

Good luck with your home search.

[Doubletrouble]

Taking really bad advice from friends and family who have no clue what they speak.

[frenzyrider]

Can we also include advice for investment home? What should one consider when purchasing a second home for investment (rental) purposes?

[dfwuno]

Buying a townhome that has no HOA. Still a lot of units being built and sold with 4 6 or 8 units and no association. And then realtors advertise NO HOA!!! and people bite. Sure I would love to have no dues or association but when one or two units don't keep theirs up or paint or trim trees etc it hurts the entire complex. Go back 5 or so years and see what the places look like and good luck getting what you paid back.