This week we continue with Part 2 of the Top 10 Mistakes Home Buyers Make. If you missed Part 1, click HERE to read it now.
So your home search has finally come to fruition and you have found a house you love. You are now ready to make an offer. Remember, presentation is everything!
6. Making an Unappealing Offer
Knowing the kind of market you are in is crucial to the type of offer you make on a property. In a seller's market many lower priced homes may receive multiple offers, with several cash buyers. With low inventory, the competition increases. Don't drag your feet on a property you like. Your offer and its presentation often tell the seller what type of buyer you will be. Are you difficult or cooperative? If you are financing, be prepared to make your offer as appealing as possible so you can compete with the cash buyers.
7. Misinterpreting Negotiations with Fighting
Often buyers misinterpret a seller's response to their initial offer. They get offended that the seller may be requesting a larger escrow deposit, or a shortened inspection period. Take the emotion out of the process. This is where your agent is crucial in providing a buffer and helping you secure a contract. Think like a seller. There are usually very good reasons why a seller makes certain demands. They want to be sure you are serious about going through with the transaction and not wasting their time.
8. Misunderstanding the Home Inspection
Very simply put, a home inspection doesn't tell you everything that is right with the property. It lets you know everything that is wrong with it. Don't dwell on the small repairs that are visible, and that you may or may not need to fix, anyway. You should concentrate on the things you can't see rather than those you can. The roof, the A/C, the plumbing, the electric, be sure you are aware of their age and current condition.
9. Missing or Ignoring Contract Deadlines
Florida is a very home buyer friendly state. The real estate contract can protect your interests. Judges are also very protective of buyer's rights. However, missing or ignoring contract deadlines is the quickest way to lose those rights and protections, and earn the ire of courts and judges. Be aware of ALL contractual dates and deadlines, including delivery of escrow deposits, inspection period, commitment period, and closing date, among others. Understand what each deadline requires. And know that every request, extension, revision, and cancellation MUST be in writing. Don't assume that a phone call to your agent will protect you if something goes wrong.
10. Not Knowing All the Costs Involved
It amazes me how many buyers reach a closing and are surprised by all the fees and costs involved in the purchase. Be sure to review your lender's Good Faith Estimate that is delivered to you when you first apply for your loan. It is usually a very good indication of all the costs involved. However, remember it is an "estimate" and some fees will change slightly during the process or at closing.
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