Ten Deadly Mistakes Buyers Make When Purchasing a Home

1. Searching for Homes Without a Mortgage Prequalification – It can be heart breaking for a buyer to fall in love with a home only to find out that they cannot afford to buy it.  After that, seeing lower priced homes will surely disappoint.  On the flip side, if you can afford more than the price range you are seeing, you may be giving up amenities you’d love to have.  Shop smart – get a mortgage pre-qualification.  Then you’ll be ready to act if you fall in love!  Your lender can tell you exactly what price range works with your specific financial situation.  It’s free and easy.  Call me if you need help with this.
2. Not Having a Home Inspection – This is the best money you can spend to give you a level of comfort that there are no hidden flaws.  And Home Inspection, Radon and Termite Contingencies in the Agreement of Sale allow you to get your deposit money back if you find something that is a deal killer.
3. Limiting Your Home Search to Open Houses or Printed Ads– A Realtor® can provide timely information targeted to your specific needs and dreams.  Open Houses are a good way to learn what you can get for your money, but a terrible way to search for a home. If you are searching on the internet, please know that some popular sites have a substantial delay when posting that a listed home is under agreement.  This can be very frustrating.  A great site for up to date information is www.AnnByerRealEstate.com.
4. Not Knowing the Total Costs Involved – In order to get to settlement, you will need money for closing costs as well and a down payment.  A Realtor® can provide a detailed estimate of closing costs so you’ll have a clear understanding of what money you will need for settlement and your monthly housing costs including principal, interest, insurance and taxes as well as any mortgage insurance premiums.
5. Refusing to Confide in a Trusted Advisor – Some Buyers withhold information from their real estate lawyer or real estate agent because they don’t feel it’s important or they do not want to disclose personal information. Professionals are representing your best interests and to best serve you need to know all the facts.  A home is a big purchase and you will have concerns.  It is best to air them with her and allow her to help you through the process.  She also may be able to protect your deposit if she has full knowledge of the issues should you decide to cancel.
6. Making Big Purchases Prior to Closing – Do not make any purchases of automobiles, furniture, cars, riding mowers or other large purchases as this could alter the qualifying ratios used by your lender.  Hold off on major purchases until after settlement.  Many deals fall apart because buyers make this mistake unaware of the consequences.
7. Assuming Foreclosures and Short Sales are Great Deals – While distressed sales continue to appear on the market, many of these homes require substantial work in order to return them to a livable condition.  Banks are careful about knowing the appraised value of the homes in their portfolio and strive to agree to a price that is reasonably close.  In many cases, the Buyer may need to spend money on inspections only to have their offer rejected.  Short sales can take substantially longer than a normal real estate transaction.  Many Buyers lose patience and walk away.  It’s best to understand the potential rewards to make sure they offset the risks and inconvenience.
8. Disclosing Too Much Information to the Listing Agent – Too often a Buyer who wants to see a property calls the Listing Agent (whose name is on the yard sign).  This agent represents the Seller.  Buyers are better off calling a Buyers Agent so that their interests are fully and exclusively represented.  Look for the ABR® designation (Accredited Buyer’s Representative). Disclosing information to the Listing Agent can jeopardize future negotiations; information is powerful in any negotiation.
9. Not Doing Homework on the Neighborhood – It’s the old adage – “location, location, location”.  While you may love the home, make sure you are happy to live in the neighborhood.  Consider traffic, noise, proximity to amenities, schools, driving distances, etc.  It’s best to talk to people, to drive around the neighborhood at different times of the day, and test out the commute before committing to a purchases.
10. Assuming Seller Will Accept Lowball Offers – While the real estate market has had setbacks, houses in good condition are seeing multiple offers.  It’s best to have your Realtor® assess comparables to determine the market value.  Lowball offers or unreasonable demands are not likely to have success for homes that have recently come on the market.

Are you considering a Home Purchase?  I’d be delighted to help you find your dream home.  Call Ann Byer at 484-678-6445 and I’ll make sure you don’t make these or any other home buying mistakes!