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. In times of fluctuating interest rates understand you cannot lock in a rate until you have an accepted purchase contract. Do not base your purchase on what the lender says you can afford -- base your purchase on the payment price that fits into your budget.Your agent can assist you to find out how much home you can buy with a comfortable payment.
2) - Failing To Seek Out The Services Of An Experienced Real Estate Agent
Many Buyers are unaware of the fact that in almost every case they are not responsible for paying the agent’s fees; the agent is being paid a commission from the seller. It is always best to seek out an experienced real estate agent that can use their information regarding recently listed and sold properties to get you the lowest price possible. Make sure the agent is working for your best interests --not their commission.
3) - Failing To Know The Market Before Making Your Offer
Once you have found the home of your choice, talk with your agent regarding your offer. You should make sure the agent is fully informed as to your purchasing situation -- the type of loan you will be using, what your situation is regarding closing costs, what contract contingencies you will be wanting or needing. Keep a level head in regard to your purchase. Don't over spend -- know what your closing costs will be and how they will be covered. This is where your choice of agent is paramount -- you MUST have an agent who is looking out for you and your position.
4) - Not Being Informed Of Your Rights & Obligations During Your Offer To Purchase
It is of the utmost importance to be aware of your rights and what to expect from a competent real estate agent. 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 price down fast in their counter offer. In reality this often does nothing more than upset the seller and will probably end up ruining the chance at an acceptable offer to both of the parties involved. Have good communication with your agent, and they will be able to inform you on the many proper ways to negotiate a deal and still get you the lowest price.
6) - Failing To Use Home Inspection Company
Buying your home often times the most important investment and financial transaction that you will ever make. A home inspection can save you 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 homes systems and appliances.
7) - Letting Your Emotions Cloud Your Judgment
Buying a home is an important and exhilarating process! It is important not to let your emotions get the best of you and cloud your judgment of whether you can really afford to make the payments comfortably, and so on. Be sure not to get so excited that you get in over your head.
