8 Mistakes Buyers Make – When Purchasing A Home
1.Choosing the wrong Agent.
Look for an agent that specializes in what you’re looking for – new homes, resales, short sales, foreclosures, HUD homes, etc. Don’t be afraid to interview multiple agents. The right connection can make a difference, but remember that a good agent will be able to find you the perfect home in less than 2 months from when you are definitely ready to buy. A dedicated, hard-working agent will work hard to ensure your home buying process runs as smoothly as possible.
2.Not Talking With A Mortgage Lender First.
Taking the time to get prequalified with a mortgage lender first will save you a lot of time. A mortgage lender will assess your finances and will give you a realistic price range of homes you can afford.
3.Not accounting for all the costs of buying.
Encountering unexpected costs could cause stress or even the deal all together. It is always good to sit down with your mortgage lender to look at all costs that will be figured in such as taxes, insurance, closing costs, and Home Owners Association fees.
4.Not Utilizing All Home Search Options.
Real estate agents have access to much more detailed home searches on the Multiple Listing Service and are the first to know when a new home comes on the market. They also have what’s called “pocket listings”. These are properties that are not marketed or entered in the multiple listing service, because the owners would like to maintain a certain level of privacy or are on the fence about selling (but would with the right offer!). Using a real estate agent can give you more options.
5.Not being Flexible With Your “Must Haves”.
Many buyers spend months finding their dream home and everything that goes with it. Setting your expectations high for your “dream home” can seriously over limit your search. Having your mind made up on a certain house could cause you to over pay in desperation or skip over a great neighborhood you never knew was there. A good realtor will know the area well. Let them guide you to houses that have potential of fulfilling your criteria.
6.Not Doing Your Due Diligence.
It is smart to always do your research early. If you are concerned about schools, crime rate, flood zones, future construction projects, neighborhood covenants, etc., you should address these before making an offer on a home. There is a set amount of time once the offer is “accepted” that you have to perform any inspections you see necessary. If the inspections come back as “unsatisfactory” and you are unable to come to an agreement on repairs, you can withdraw your offer. Once the home is purchased, you will be responsible for any repairs needed.
7.Not Having A Home Inspection.
This relates to your Due Diligence responsibilities. A home inspection could reveal expensive repairs needed that the current owners are unaware of. It could potentially cost you well over the amount of the cost of a home inspection to have the repairs done that were not revealed because no home inspection was done. Home Inspections are to protect the buyer and are worth every penny!
8.Not Purchasing A Home Warranty.
A Home Warranty is a smart move for a buyer. If you’ve ever had an appliance or electronic break a few months after you bought it, you know how frustrating and costly it can be to get it replaced. A home warranty can potentially save you from a big headache later on and can, oftentimes, be negotiated into the sale agreement of a well made offer.