) – Not Being Pre-Approved 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-approved 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 it would benefit you to lock in a lower rate. This could save you thousands of dollars if the rate increases while you are in the process of buying.
2) – Failing To Seek Out The Services Of An Experienced Full Time Real Estate Agent
Many buyers are unaware of the fact that the same Realtor can show them properties listed by almost any other Realtor. It is always best to seek out an experienced full time Realtor who will be available when you need him or her, and who can use his/her information regarding recently listed and sold properties to get you the lowest price possible.
3) – Failing To Research The Market Before Making Your Offer
Have your agent prepare all the area sales and comparables in your area and get a copy to look over before you make your offer. This will help ensure that you do not overpay what the home is really worth. In most cases, this is the same type of information that the seller saw when setting the price of their home.
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 Realtor. 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 quickly 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 Realtor, and he/she 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 is often the most important investment and financial transaction that you will ever make. 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 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.