8 Mistakes to Avoid When Buying a Home
Buying a home is one of the largest investments that most of us will ever make. Review these 8 common mistakes that people make on a regular basis and try not to make them yourself. By making one or more of these mistakes may result in you either not being able to purchase your dream home, paying far too much or buying a home that has hidden defects costing thousands of dollars to repair.
The highly trained professionals at SRN Real Estate Pros is here to assist you through this process and we’re always in your corner!
Call us at 386-931-4683 today.
Believing a Real Estate Agent Will Cost Too Much:
Some people mistakenly believe that hiring a professional real estate agent will cost them money. The fact is, for the buyer, the services of a professional agent are absolutely free! The seller pays the commission. If you are negotiating directly with the seller or seller’s agent, you may not be taking advantage of the best deal available in the marketplace today. Using a REALTOR can help make your home buying experience smooth and stress-free.
Choosing the Wrong Agent:
Experience counts when it comes to choosing a real estate agent, and failing to choose a professional who knows the local market can prove be an expensive mistake. Look for a full-time REALTOR who has several years of experience and a track record of many successful sales. You can have your own REALTOR, a Buyer Broker or Purchaser’s Agent who is committed to using the experience gained through hundreds of successful negotiations foryour benefit – at no charge to you!
Forgetting to Look at a Current Market Analysis:
The real estate market is constantly changing. To make the right offer to purchase the home of your dreams, you have to have a good idea of the market value so you don’t overpay. Your agent will prepare a Comparative Market Analysis (CMA) showing the selling price of homes in the neighborhood. The CMA can show the difference between the asking price and the selling price, how many days the homes have been on the market and other useful information. This is the same type of report the seller receives when deciding on an asking price. Wouldn’t you like to have access to the same information as the seller?
Not Recognizing Negotiation Strategies:
One size does not fit all when negotiating the price of a home. Many buyers think that the way to achieve a fair purchase price is to make a low offer. This is the strategy of a buyer who is not in possession of all the facts essential to negotiate the best possible deal. Many times this strategy polarizes negotiations and leads to inflexibility on part of the seller, or worse yet, a failed negotiation. If you have chosen your REALTOR wisely, the most effective strategies for your particular situation will be revealed to you. Remember, in the real estate business, an agent with many successfully closed transactions usually costs the same as an agent who lacks negotiation experience. Years of experience can mean a better deal at the negotiating table with a minimum of hassles.
Failing to Have the Home Inspected:
Buying a home is a major purchase typically made after spending just a short time looking at the home. Isn’t it worth ensuring you will not be surprised later on with deficiencies that can cost you thousands? Your REALTOR can recommend several reputable, competent companies for you to choose from for an in-depth professional home inspection. Your agent will also make sure the appropriate inspection clause is inserted into the offer.
Not Understanding the Contract:
Under the terms of the Offer to Purchase, you have certain rights, but you also have some obligations. Read over your contract carefully and have your REALTOR explain the agreement to you in detail. Wrong assumptions and a poorly written contract with missing clauses can lead to increased costs or a voided contract.
Letting Your Emotions Rule:
Buying a home is an exciting time and it is usually an emotional decision. Remember that your emotions must be validated by facts and reason. An experienced agent will help to remove the emotion from the negotiating process and provide you with the information you need to make the right decisions and keep you on track for a successful outcome.
Not Talking to the Lender Ahead of Time:
Failing to take the right steps to become financially pre-qualified by a bank or other lender before you start looking at homes is crucial. After all, you don’t want to waste your time looking in the wrong price range, whether it is too high or too low. Securing an interest rate guarantee will protect you in times of fluctuating rates and ensure that your initial payments do not suddenly escalate, resulting in extra interest charges. Looking in the right price range will prevent you from buying a home that will strain you financially and emotionally. An experienced REALTOR can help you initiate this process and can recommend alternative sources of financing if need be.
Count on the experienced professionals at SRN Real Estate Pros when you are looking for a home in Volusia and Flagler Counties. Call us today at 386-931-4683 to get in touch with an agent and discuss your possibilities of home ownership.