Buying a home should be a rewarding experience, but every move presents a new challenge and a new set of options. Here are the 8 costly mistakes most frequently made by home buyers:
Failing to use the services of an experienced Realtor.
Many times buyers avoid using the services of a Realtor under the mistaken belief that it costs them money – or that they will be able to negotiate a better deal directly with the seller or seller’s agent. This can be an expensive mistake. If you are negotiating directly with the seller or seller’s agent, you may not be taking advantage of the best deal available in the marketplace today! You can have your own Realtor, a Buyer Broker or Buyer’s Agent, who is committed to using the experience gained through hundreds of successful negotiations for your benefit – at no charge to you! Your agent can be paid from the same commission that the seller’s agent is paid from – by the seller.
Not knowing who the agent is really working for.
It is important for you as a buyer to know and understand for whom the agent helping with the house hunting is actually working. The agent may be working as a sub agent for the seller – or as your agent representing your best interests. If you are not sure who your agent is working for – demand clarification. Your Realtor must fully explain the 3 different forms of agency relationship to you. When negotiations commence you certainly should know whether information you divulge will be used for the seller’s benefit – or your’s!
Failing to take the steps to be financially pre-qualified, and having an interest rate guarantee before looking at homes.
Knowing how much you can comfortably afford will ensure you are looking in the right price range and prevent you from buying a home that will strain you financially and emotionally. Having an interest rate guarantee will protect you in times of fluctuating rates and ensure that your initial projected payments do not suddenly escalate, resulting in extra interest charges.
Failing to keep updated on comparative home values.
Throughout the purchasing process you must know exactly what the comparative market values are to ensure that you are searching in the optimum price bracket, and that you do not overpay when you put in your offer. This is the same information the seller receives when deciding on an asking price. You should expect to be aware of the same information as a buyer.
Failing to recognize different negotiating styles and strategies.
Many buyers think that the way to achieve a fair purchase price is by offering low. This is the strategy of the buyer who is not in possession of all the facts essential to negotiating the best possible deal. Many times that type of strategy will polarize negotiations and lead to inflexibility on part of the seller – or worse yet – failed negotiations!
Failing to have the home inspected by a competent home inspection company.
Buying a home is a major purchase usually made after spending just half an hour looking at the home. Isn’t it worth ensuring you will not be surprised later with deficiencies costing thousands?
Not knowing and understanding your rights and obligations set out in the Offer to Purchase.
It is important to understand completely the terms of the Offer to Purchase. Wrong assumptions, poorly written or missing clauses, and not understanding how the clauses affect the purchase, can lead to increased costs or a void contract.
Letting emotion blind reason.
Buying a home is an exciting time and is usually an emotional decision. It is important that those emotions be validated by facts and reason. An experienced agent will help to remove the emotion from the negotiating process and provide you with the information you need to make the right decisions.