5 Costly Mistakes to Avoid When Buying a Home
#1 Rose-colored Glasses
Most of us dream of improving our lifestyles and moving into a home. The problem is that there’s sometimes a discrepancy between our hearts and our bank accounts. You drive by a home that you fall in love with only to find that it’s already sold or that it’s more than what you are willing to pay. Most home buyers get caught in this hit or miss strategy of house hunting when there is a much easier way of going about the process. For example: find out if your agent offers a Buyer Profile System or “House Hunting Service,” which takes the guesswork away and helps to put you in the home of your dreams. This type of program will cross-match your criteria with ALL available homes on the market and supply you with printed information and photos of only the types of homes that meet your specific needs and wants. A program like this helps homeowners take off the rose-colored glasses and affordably move into the home of their dreams.
#2 Not Having a Financing Plan In Place
Pre-approval is a very simple process that many home buyers fail to take advantage of. While it doesn’t cost or obligate you to anything, pre-approval gives you a significant advantage when you put an offer on the home you want to purchase because you know exactly how much house you can afford and you already have the green light from your lender. Your worries or fears about whether you will be able to qualify for the home are eliminated in the beginning. With a pre-approved mortgage your offer will be viewed for more favorably by a seller sometimes even if it’s a little lower than another offer that’s contingent upon financing. Don’t skip over this important step.
#3 Not Knowing the Value of a Property BEFORE Making an offer
One of the biggest mistakes a home buyer can make is to submit an offer on a home without knowing the fair market value of the property. Many buyers put in a blind offer that is higher than the home is really worth and end up paying more for the home than they should. What other buyers do in an attempt to avoid paying too much is put in an offer so low that the seller will not even respond to their offer and moves on to a better offer instead. A knowledgeable Realtor will provide you with a fair market value analysis of a property before you make an offer. This will allow you to determine if your offer is low but at the same time enticing enough to get accepted by the seller.
#4 Failure to Have a Home Inspection
As a buyer you need to know the condition of the property you are buying. A home inspector can reveal things about a home that you can not see on the surface. They check every component of the home and look in places most people wouldn’t even think about. I have seen many homes that appeared to be in great condition bhttp://www.scottmarvin.com/admin/content.php?content_id=38850ut had some hidden problems that could have led to a huge expense. A home inspector will find these issues and let you know exactly what is going on with a property before you decide to close on it.
#5 Going it Alone
Some home buyers decide to go it alone without any help from a realtor. Unless you are an experienced home buyer and are up-to-date with the current laws and procedures you should reconsider. There are many parts to the real estate transaction that are best left to an expert. In the state of Ohio you do not have to pay a realtor to represent you as a buyer. There is no cost to you to have an expert negotiate on your behalf, coordinate the inspections, deliver necessary documents to your lender, coordinate the title work with the escrow company, process the warranties and make sure the seller complies on time with the terms of the contract.
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