Ten Mistakes Home Buyers Make.
Working with more than one agent.
Real estate agents work on commission. Once you have selected a professional agent whom you trust, assure them that you will work only with them so that they can focus on finding you the right house. Your loyalty will be repaid by their loyalty to you.
Not signing a Buyer Broker contract with their agent.
You now can hire an agent to work exclusively for you. By placing your agent under a BUYER BROKERAGE contract, your agent will be obligated to be your advocate in negotiating the best price and terms for you in the purchase of your new home.
Not getting pre-approved by a lender before looking for a house.
By arranging your financing in advance of your house hunting, you will avoid the disappointment of looking at homes you can't afford. By getting pre-approved for your loan, you become in effect a cash buyer and can often save money on the purchase of your new home.
Not buying now.
Once you are able to buy a home, it's best to act right away. Buyers often pay thousands of dollars more for the same house because they waited for the price to drop. Traditionally house values increase. In addition, by acting quickly, you begin to get the tax savings of home ownership and to enjoy the increase of your equity in the home.
Losing the house of their dreams because they had to think it over.
Ask any experienced real estate agent and they can tell you stories about people who find their dream home and lose it to another buyer. Doesn't it make sense that if you have fallen in love with a home others will also see the same value?
Not buying a Home Warranty.
No matter how well maintained the house you buy looks, things can go wrong after you move in. Protect your investment by purchasing a Home Warranty that will cover you against costly repairs to most of the homes operating systems and appliances. Ask your exclusive agent to request that the seller purchase the protection plan for you.
Not listening to their agent about the offer they should make.
Many buyers lose the home they fall in love with by thinking they can save money by making a low offer. Your agent will share with you the information about the current market value of the home. The seller also has this same information. By not making a realistic offer for the home, you may insult the seller and allow another buyer to get the home instead of you.
Not reading and understanding the terms of the offer being made.
You have the right to read and understand the Purchase Contract. While many buyers do not read the entire contract, always ask your agent to review the most important sections of the contract. Generally, anything that is printed in bold type, and any part of the contract that has been written in, is extremely important.
Not having a Home Inspection done during the inspection period.
No matter how nice the home looks to you, and no matter how completely the seller has disclosed any defects in the property, you have the right to make your offer subject to a Home Inspection by a competent professional inspector. Let your agent help you understand any inspection reports you receive.
Not getting written estimates of closing costs from your lender and agent.
Even 'zero down' loans have buyer closing costs attached to them. Make sure your lender and your agent give you written estimates of these costs and that you understand what they are for.
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