Home Buyer
Mistakes to Avoid

Being proactive in the home buying process can make a big difference in your overall real estate experience. There are many things you should do in both preparation and throughout the home buying process. Here are some commonly overlooked elements of buying a home.

Not Using a Professional Realtor®

The most important thing a home buyer can do is actively choose a professional exclusive buyers agent. Most buyers will eventually use a Realtor in their purchase. After all, professional real estate representation is available free of charge to buyers. Why not select an agent who offers outstanding service and resources you expect.

Top Real Estate Agents Offer More Working with a real estate agent is not the same as working with a Top Real Estate Agent. In the volatile real estate industry, agents come and go quickly. Each agent can only offer what he or she brings in knowledge and tools. Real estate agents are independent contractors and each is limited to personal knowledge and resources.

Don't big name real estate brokerages offer the best resources? No. A reputable brokerage is important, but the most important thing is the choice of real estate agents.

A Top Real Estate Agent will always serve your needs better than any other individual. Top Agents bring a confident and personal style to your transaction. Top Agents will shine above the crowd in many ways such as wider reaching marketing, easier to navigate website, and responsive service.

Since a professional real estate agent will cost a buyer nothing, it is wise for a buyer to select an agent at the beginning of the process. Don't settle for whatever agent is in front of you when you are ready to deal.

Not Seeking a Lender Pre-qualification

It is very important to get a lender pre-approval at the beginning of your home search. Failure to get pre-approved can lead to several problems. The most obvious is that you may be shopping outside of your ability to buy. This can use up some of your valuable time and sometimes it is hard to be satisfied in a less expensive home after you have shopped for more expensive ones. More importantly, if you find the perfect home, you will need to be ready to act fast.

Part of your negotiating power can come from being pre-qualified when you make the offer.

Not Being Completely Honest with Your Lender

Your credit will affect every financial aspect of your home purchase. It can mean the difference between full financing or a large down payment. Also, it can affect interest rates, prepayment penalties, closing costs, and many other terms of the loan.

It is important to remember that your team including your Realtor® and lender is working to get you the best deal possible. If addressed early in the process, your Realtor® or lender can help you correct or improve many credit issues before they sour the deal.

Not Negotiating Customary Concessions

Concessions can include anything from a home warranty to part or all of your closing costs. Legal requirements and market conditions change from time to time and your Realtor® should be able to help you understand how to negotiate these items and what is at stake.

Not Requesting a Home Value Report

A market analysis is usually used by sellers to determine the right selling price. As a buyer, you too can have your own market analysis to protect your interests. This is the best way to assess whether you are getting a good price or not. Keep in mind, the appraiser does not do this for you.

Your professional exclusive buyers agent can prepare you a professional market analysis when you have found the right home.

Not Completing Timely Inspections

Your home will likely be among the largest purchases of your lifetime. Any house can have defects both visible and hidden. A professional inspection can protect you from a great deal of frustration as you may know about certain problems up front. If your contracts were properly written, you may also be able to cancel the purchase if defects are found.

Not Considering Current Real Estate and Rental Contracts

Many people are committed to their current housing situation for a duration of time. If you are a homeowner, you may need to sell you home before purchasing the next one. You can make an offer contingent on selling your current home, but there are drawbacks to consider.

If you are in a lease contract, you may want to wait until the lease is expired. Many landlords will allow month to month rentals, but some charge a premium. When you are close to purchasing a home, you may want to look into this option. At a minimum, you should understand your penalty for breaking your lease contract. Be sure to look at both the cost and the affect on your credit.