Mistakes Every Home Buyer Should Avoid
Mistake #1: Thinking you can't afford it.
Buying a home is the smartest financial decision you will ever make. In fact, most American home owners would be financially unstable during retirement if it weren't for the equity in their home. Additionally, mortgage rates are flexible and tax allowances favor home ownership.
Even if you have little money for a down payment or credit problems, chances are that you can still buy a new home. There are many strategies that can help you attain the dream of home ownership and working with the right professionals is an important step in this direction.
Mistake #2: Not hiring a buyer's agent to represent you.
Buying property can be a daunting task. In fact, it is probably the biggest single investment you will ever make. Real estate transactions have become increasingly complicated. New technology, laws, procedures and competition from other buyers requires buyer agents to perform at unprecedented levels of professionalism and service. Making the wrong decision can cost home buyers thousands and thousands of dollars and, unfortunately, for some buyers home buying can turn into a negative and stressful process.
It doesn't have to be like this!
Working with a buyer's agent who has a deep understanding of of the real estate industry and is on your side will help you avoid negative situations. This means they are loyal to you and are obligated to look out for your best interests. Buyer's agents can assist you in finding you the best home, the best lender and the best inspector for you. Perhaps best of all, the buyer's agent is paid out of the seller's commission even though he/she is working for you, the client.
Trying to navigate the home buying process without the assistance of an experienced and reputable agent is never recommended.
Mistake #3: Getting a cheap inspection.
Shopping for a cheap inspection should be avoided. The cost of a home inspection, even at the high end of the spectrum, is very small in comparison to the home being inspected. Additionally, the cost of hiring a certified home inspector is almost insignificant.
As a home buyer, it's likely you have been adding up closing costs, shopping for mortgages and trying to get the best value for your money. Don't let your real estate agent or an unaccredited home inspector talk you into skimping on an inspection. Certified inspectors perform the most thorough inspections and earn their fees many times over.
While certified inspectors might charge slightly more, you will save money in the long run and you can't put a price on peace of mind.
*Note: This page will be updated often with industry-related resources, tips and tricks.