1) Not Being Pre-Qualified For Financing Before Looking
When you start to look, it is important that you know how much you can comfortably spend on a home. Getting pre-qualified for financing will lock down your price range and help prevent you from being turned down after falling in love with a home. It will also save you the strain of having to find a lender within a few days of conditionally buying a home.
2) Failing Seek Out The Services Of An Experienced Real Estate Professional
Many buyers are unaware of the fact that in almost every case they are not responsible for paying the agentís fees...the agent typically receives a portion of the listing commission (which is a seller's expense). Many buyers are also surprised to realize that the real estate professional does not actually represent the buyer in the transaction. Before working with a real estate professional, please make sure to find out who the professional represents in the transaction (if anybody) and find out about the professional's experience and background. As we've already discussed, it is always best to work with an experienced real estate estate professional that can look out for your best interests.
3) Failing To Know Research The Market Before Making Your Offer
Before you make any offer to purchase a property, have your real estate professional provide you with a "Comparative Market Analysis" (which is a list of houses that have recently sold and are comparable to the one you're interested in purchasing). Reviewing a Comparative Market Analysis prior to making an offer will help ensure that you do not overpay.
4) Not Being Informed Of Your Rights & Obligations During Your Offer To Purchase
It is very important to be aware of your rights and what to expect from a competent real estate professional. A small mistake in a condition or clause could end up costing you time and money, or in some cases even void your contract.
5) Not Understanding The Common Negotiating Methods Used At Offer Time
Some buyers have been told that the best way to get a good price is to "low ball" the seller from the start in hopes that the seller will drop their asking price significantly. In reality, this often does nothing more than upset the seller. In many cases, a low ball offer can ruin any chance you have at purchasing the property. To avoid this difficult situation, rely on the expertise and negotiating ability of your real esate professional. A good real estate professional will be able to inform you of various ways to negotiate a deal...and still get you a fair price!
6) Failing To Use Home Inspection Company
Buying a home is a very important investment and financial transaction. Consequently, make sure you obtain a thorough home inpsection before closing. A home inspection can save you hundreds or even thousands of dollars and unexpected problems down the road. In addition to the inspection, it is often a good idea to request some type of Home Warranty to cover the electrical appliances that come with the home.
7) Letting Your Emotions Cloud Your Judgment
Buying a home is an important and exhilarating process! It is important, however, not to let your emotions get the best of you and cloud your judgment. Be sure not to get so excited that you "get in over your head" as far as monthly expenses are concerned.