Buying a home requires a substantial amount of knowledge. Knowing all legal ramifications, financial options, and the effect emotions play on your decisions is vital. Real estate tenets are ever evolving, as laws and processes change on a daily if not weekly basis. If you can learn from others mistakes and gain as much knowledge as possible, you will minimize any disappointment due to poor decision making. Below are 7 of the most common, precarious and expensive mistakes made by home buyers.
? Buyer's remorse - This is very common in real estate, when the buyer changes their mind at the last minute. This cause is due to lack of upfront preparation. In the "final hours", the buyer acknowledged an issue that did not meet their approval. There are many resources available for the home buyers use. Do not go it alone or make hasty decisions. The end result may result is serious legal issues, such as the loss of earnest monies deposited when you made the offer.
? Over-Extending Yourself - There are many financing factors to consider but be careful not to become "house poor". Extending your home buying finances to the maximum can lead to much financial stress. Not having any extra income to furnish your new home or covering costs involved for normal house maintenance could be disastrous. You must be sure that buying a home will not leave you strapped financially.
? Going it alone or having no representation - If you think you do not need representation by a real estate professional, think again. Educate yourself on the laws of Agency and be sure you are exclusively represented by the agent. Going it alone could be perilous if problems arise. Many homebuyers will hire the listing agent of a home to do both sides of a transaction with the belief it will save them money. The listing agent has a fiduciary duty to the seller to get them the highest possible price for the home and the best possible terms. You want someone who negotiate on your behalf and look at for your best interests as a buyer.
? Shop mortgages - Do not simply use the first mortgage company you interview. Interview at least 2 or 3 different lenders. Getting the best terms and interest rates should not be your only deciding factor. If a lender offers you the best rates but later "drops the ball" and your home does not close escrow as per the terms of the contract, this could cost you a bundle. It is also highly likely you will lose the home to another buyer. Customer service should also be a factor in the equation.
? Getting Pre-qualified or Pre-approved - Many buyers think they have a good idea of the price range they can afford. They proceed to preview these homes and find out they do not qualify for this price range. The buyer then regroups and their agent shows them lower priced homes based on their qualifications. This can be most discouraging for the home buyer and their emotional excitement diminishes. In today's market with all the short sales and bank-owned homes, it is mandatory for the buyer to be pre-qualified or pre-approved prior to writing a contract on a home. This mandatory requirement will only strengthen the buyers negotiating power.
? There is no "Perfect Home" - Many homebuyers exhaust their efforts looking for that perfect home. This is an impossible task. There will always be pros and cons when making that home buying decision. Weigh these carefully based on your wants and needs. There will always be "cons" when deciding to purchase. Spending too much time looking for the perfect home will be exhausting, discouraging and you could miss on other marketable features such as points and interest rates.
? Ignoring the Home Inspection - Every buyer is protected when making an offer on a home at least until the Home Inspection is completed. Home inspections are paid by the buyer, and in most cases, paid up front. The average home inspection costs around $300. This is a very wise investment and will give you peace of mind knowing the home is structurally sound. It will also point out "hidden" issues you and your agent might not have noticed when initially previewing the home.
Buyer caveat (Buyer Beware). Do your research and ask lots of questions of your real estate professional. There is no such thing as a "stupid" question. Feel comfortable that you are represented by a professional. The power of education and knowledge in the real estate market can be very rewarding.
For more information on the home buying process in the newresalehomes.com Phoenix Real Estate or newresalehomes.com/metro-tucson.php Tucson Real Estate markets, please visit Real Estate Homes, LLC where you can search for all current homes for sale.
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