What Are Some Deadly Pitfalls To Avoid While Buying A Home?

Buying a new home of your own is a big deal.  There are many home buying pitfalls that a buyer can make while buying a home. In this article, we’ll discuss some of these pitfalls that can make your home purchase less than perfect. These pitfalls can cost you loads of money as well.

Not Completely Understanding The Agency:

Real Estate Agency is a misunderstood subject by many however, it can create many complications if it’s not completely understood.  Essentially, the agency is all about how a real estate agent works for you and will cooperate with you in a real estate business. There’s one mistake that almost every buyer makes is buying a home at an open house directly from the listing agent.

Not Getting Pre-Qualified Before Looking for Homes:

Looking for homes is fun but talking about money is not. Getting a proper pre-approval letter will head off loads of aggravation and heartache from the starting. A proper pre-approval will ensure you that you are looking at the right homes. You may also have a little discussion about programs and interest rates with your mortgage officer prior while finding a home. 

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Not Seeking The Professional Help:

If you think you can learn everything you need to know about buying a home on the internet, then you’re wrong because real estate is dynamic and markets also change quickly.  There are buyers agents that can help you buy and you have mortgage bankers, appraisers, real estate attorneys and home inspectors as well. All of them can play a vital role in your home purchase.

Thinking Short Term:

Try to buy a home that will fulfil your requirements for the next 10 years.  There is a cost to selling your house and if the market price is not increasing quickly, you might not get all of your money out in a short time if you end up having to sell.

Not Having a Home Inspection:

Don’t even think about saving money by skipping home inspection. A house is completely filled with expensive systems so, hire a good home inspector as well.  Your buyer’s agent can be a good resource to find a great home inspector.

Not Fully Understanding The Costs Involved:

Make sure you completely understand the costs involved when buying a home.  Many times home buyers overlook the total costs that are above and beyond their down payment, especially if this is your first home.

Not Understanding Current Market Price:

Real estate markets rise and fall frequently.  The present state of a real estate market dictates many things when you are buying a home.  For example, if you are in a buyer’s market you will negotiate in a different way. In a seller’s market, a seller may be motivated but not desperate while in a buyer’s market they may appear desperate. If a market was down last fall and winter, it doesn’t mean that it can’t rise again.

Relying on Oral Agreements:

If you are buying a home based on what your agent is telling you, make sure to get it in writing.  Oral agreements are legal but not enforceable. Any representations that have been made to you and is not in any marketing materials or written contracts need to be put in writing.

Not Understanding Original Market Value:

There is a process for defining the reasonable market value of a home.  It relates homes with similar specifications in a similar location to the subject property.

Only a Comparative Market Analysis can specify what a home is worth.

A home can be expensive, priced right at the market or even be underpriced. Many homes will be priced right at the market or slightly under to make numerous offers.  It is a strategy home sellers and real estate agents use. 

Not Understanding How to Negotiate:

It is simple for a buyer to negotiate in a buyer’s market.  A buyer’s market will let a buyer get away with a lot. Only to be rejected if you don’t change your negotiating strategy. 

Real Estate Agents spend part of every day negotiating prices, home inspections and other detail involved in a real estate transaction. 

How to Avoid These 10 Home Buying Pitfalls?

The solution is quite easy. All you have to do to avoid these home buying pitfalls is to use a buyer’s agent that you can trust and who can provide you enough knowledge, educate you about the whole procedure and bring the necessary skills to the table.

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  • muzhir

    December 15, 2017 AT 05:49 PM

    what about the research and preparation?

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