10 Deadly Mistakes Buyers Make When Purchasing a Home
1. Making an offer on a home without being pre-qualified
Pre-qualifications will make your life easier – so take the time to speak with a lender. Their specific questions in regard to income, debt, etc. will help you determine the price range you can afford. It is an important step on the path to home ownership!
2. Not having a home inspection
Trying to save money today can end up costing you tomorrow. A qualified home inspector will detect issues that many buyers can overlook.
3. Limiting your search to open houses, ads or the internet
Many homes listed on the internet have already been sold. Your best course of action is to contact a Realtor. They have up-to-the-minute information that is unavailable to the general public and are the best resource to help you find the home you want.
4. Choosing a Real Estate agent who is not committed to forming a strong business relationship with you
Making a connection with the right Realtor is crucial. Choose a professional who is dedicated to serving your needs – before, during and after the sale.
5. Thinking there is only one perfect house out there
Buying a home is a process of elimination, not selection. New properties arrive on the market daily, so be open to all possibilities. Ask your Realtor for a comparative market analysis. This compares similar homes that have recently sold, or are still for sale.
6. Not considering long-term needs
It is important to think ahead. Will the home suit your needs 3-5 years from now?
7. Not examining insurance issues
Purchase adequate insurance. Advice from an insurance agent can provide you with answers to any concerns you may have.
8. Not buying a home protection plan
This is essentially a mini insurance policy that usually lasts one year from the close of escrow. It usually covers basic repairs you may encounter and can be purchased for a nominal fee. Talk to your agent to help you find the protection plan you need.
9. Not knowing total costs involved
Early in the buying process, ask your Realtor or lender for an estimate of closing costs. Title company and attorney fees should be considered. Pre-pay responsibilities such as Homeowner Association fees and insurance must also be taken into account. Remember to examine your settlement statement prior to closing.
10. Not following through on due diligence
Buyers should make a list of any concerns they have relating to issues such as crime rates, schools, power lines, neighbors, environmental conditions, etc. Ask the important questions before you make an offer on a home. Be diligent so that you can have confidence in your purchase.