The 9 Critical Errors Most Home Buyers Make
4. Not having financing in place What can you afford? How much cash do you need to close? What are pre-paids escrows points ? Sellers wont seriously look at an offer until youre pre-qualified. Talking with a Mortgage broker ahead of time will answer all your questions and help you find the best financing programs. Your Realtor can provide you with a list of Lenders to call. Having financing in place will allow you to act quickly should you find your dream home Dont let it get away!
5. Not having your home professionally inspected It is not just a matter of trusting the seller on the condition of the home. Most problems that come up during an inspection are not obvious and the seller did not know about them. Saving a nominal inspection fee could cost you thousands of dollars. Your Realtor should contract for your right to an inspection. If after your offer to purchase is accepted, a structural or mechanical problem is discovered, the Seller must make the repair or release you from the contract. Your Realtor can give you a list of reputable inspectors that you can choose from.
6. Not getting a professional survey Is like going on a blind date. What are you buying? Do you know where the property ends? Whos property is the tree on that fence? Being shown a previous survey is not the same as having one professionally done before you close. Things might have changed. This mistake could be costly if your fence or even the house is on the neighbors property or if the tree you didnt know was yours falls on the neighbors house. Your Realtor can help to make sure the survey gets done by a reliable company.
7. Not buying in the right price range Two important things that should be considered. First, do not become house poor. Dont spend so much on the house that you can not afford to heat or cool it or eat for that matter! Your dream house doesnt have to be this one! Guidelines on price should be set forth before you start looking for a home with the help of your Realtor and lender. It is tempting to try for that extra feature or larger yard, but without sticking to the guidelines you, your Realtor and Lender have set out, can quickly get you in over your head. The other side of this error is actually more common, not buying enough house! It is best (while keeping the first premise in mind), to buy as much house as you can afford. It will keep you from having to upgrade sooner (selling, buying and moving are expensive) Generally more expensive homes go up in value quicker. More expensive homes also tend to be in better neighborhoods and are kept in better condition.
8. Not listening to the experts Many buyers have a vision of what they want in a house, how much they are going to pay and the terms of their financing. That is good but they should not remain inflexible. Realtors as well as lenders, inspectors, real estate attorneys and other people who are involved in the buying and selling of Real Estate, should be listened to carefully. You are bound to hear things you dont like but it is best to consider the experts advise. It could make for a costly mistake to hold your ground on principle without the knowledge to back it up. Look for Realtors who arent "yes men" that will not be afraid to stand up to you to protect your best interests. A good agent will help you to detach some of the emotion so you can make a solid business decision.
9. Not signing an exclusive buyers agency agreement You have the right to contract with a Realtor for a right to have them represent you. Hopefully your best interests are always in mind but with a buyers agency agreement your interests are guaranteed by law. Any serious agent will insist on having this agreement with you to protect themselves and all the time they will spend with you. This also protects you. Having this commitment from you will allow your Realtor to dedicate the necessary time and resources. Without this commitment would you expect to get 100% from a Realtor? Helping you find a home is what your Realtor does for a living. They must put their resources into buyers that wont use the time and resources of their Realtor just to buy from someone else. Your Realtor can explain all the details of buyers agency in Nevada.
I hope you have found this report interesting and thought provoking. Providing this kind of information and service is how I do business. I wish you well in all your Real Estate transactions. These issues are just of a few of the potential hazards in the Real Estate market; whomever you choose to help you, insist on a high level of service, knowledge and integrity. Please call me, Sam Whiteside, if you have any questions.
This report is based on personal opinion and related published articles. Is intended as only a guideline and readers must assume the responsibility of making their own decisions regarding the Purchase or sale of Real Estate.
Report courtesy of Tom Schroth: RE/MAX North
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