Both buyers and sellers made plenty of mistakes before the housing bubble burst in 2007. Thankfully, much can be learned from those mistakes to ensure that buyers and sellers don't make them again!
1-Don't view your home as something you can borrow against. Purchasing a home is not like purchasing an investment property. Your home is not a bank that you can borrow funds from for vacations or other large purchases. When refinacning during the housing bubble, homeowners who had treated their home as a bank found that they were unable to sell their homes for the amount that they owed their lender.
2-Keep your home well maintained, but don't go over the top. Don't go above and beyond when it comes to updating and maintaining your home if you don't plan on staying there and enjoying them! Keep in mind that you may not always be able to recuperate the money you spent on maintaining and updating your home.
3-Don't buy a home with little cash down and don't assume your home will appreciate in value. Those that had done this ended up being foreclosed on as their homes depreciated in value.
4-Keep your home move-in ready. Buyers want to move into a home that is not going to require a lot of work.
5-Know what you are getting yourself into when you purchase a home being sold "as-is". Take into account the amount of work and funds it will take to repair the home when you make your offer.
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