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Mistakes
to Avoid When Buying a Home
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Buyer / Seller Guides List
A great way to make
the home-buying process flow smoothly
is to educate yourself and learn
from mistakes others have made -
this can make the difference between
buying the home of your dreams and
buying a "lemon."
Not getting
pre-qualified or pre-approved
If you receive pre-qualification
or pre-approval from a reputable
lender, your negotiating position
is strengthened. It shows agents
and sellers you are serious about
buying a home.
Not seeking
guidance from real estate professionals
and inspectors
These people are trained in buying,
selling and inspecting. Find someone
you respect and trust and allow
them to help – it will benefit you
in the end.
Choosing
an agent haphazardly
Don’t jump from agent to agent just
because you saw their name on a
sign outside of a house you like.
Interview at least three agents
and choose the one you feel most
comfortable with and who will focus
on your needs.
Not getting
enough information about the properties
Obtain market statistics and sales
records for the area you are considering
buying a home in so you know how
things (prices, conditions, list-to-selling
price ratios) stack up in your neighborhood.
Not looking
at enough houses for sale
The more you see, the more you’ll
learn about what you want and what
each house is worth.
Not making
the correct price comparison
Don’t assess the value of a house
only on the asking price. Your real
estate agent should compile reports
that reflect and compare the selling
price of similar houses recently
sold.
Forgetting
to calculate all the costs
When calculating the maximum price
you can afford, don’t forget to
include hidden costs, i.e. courier
costs. Calculate a reasonable price
range and look for a house that
is priced closer to the lower end
of your range.
Not asking
enough questions
Don’t be afraid to ask questions!
You’re not supposed to know everything
about buying a home. Remember, this
is potentially the biggest purchase
you will make in your life – don’t
get caught in a "lemon" because
you didn’t ask enough questions!
Fear of
losing a specific house
Don’t fall in love with the first
home you see. New listings come
onto the market all the time. The
best deal may still be around the
corner.
Not looking past the interior decorating or
cosmetic improvements
Don’t choose a house because you
like the interior decorating – that
is not what you are buying and it
will probably go with the seller
when he moves. Check out the actual
structure of the house!
Not checking
out every nook and cranny before
purchasing
Go through the house with a fine-tooth
comb. You don’t want to find out
after you’ve bought the house that
the roof is leaking. Open cabinets,
turn on every switch, notice details,
move stuff away from the walls,
look in the attic, turn on faucets.
Not making
a low offer
Pay only what you can afford. The
seller can always make a counter-offer,
and you can counter-offer again
until you settle on a suitable price,
or you can simply walk away.
Being pushed
into buying a certain home
Don’t make a decision until you
feel you’ve seen enough to pick
the best one.
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