Don’t Make These 4 Home Buyers Blunders

By
Real Estate Agent with Tunmire Realty

Buying a home needn't be a high-risk venture. With a little planning, preparation and the use of a knowledgeable real estate agent, you can avoid these common buying blunders.

Procrastination

How many times have you called on a property only to learn it was already under contract? It happens more often than you might realize, especially for the biggest bargains or areas in high demand. Working with a real estate agent allows you to make your buying preferences clearly defined and then be automatically notified once a property that meets your expectations is listed.

Budgeting

Find out how much home you can afford by getting pre-qualified and pre-approved by the bank. Not only does it send the message that you are a serious buyer who is willing and able to close on the right property, it can also help the broker negotiate other terms, such closing costs, on your behalf to make the deal work.

Assumptions

Never assume that the taxes and insurance quotes for a property will remain the same after purchasing. Property or homeowners insurance also involves your independent credit score as well as the history of the home and its condition.

Likewise, property taxes are often years behind or may have a cap placed upon them if the property was eligible for homestead exemption or other special limitations placed on tax increases. Always obtain at least three independent insurance quotes on a property and obtain a newly revised estimate for property taxes before making a final offer.

Skipping Inspections

Whether the home is brand new or 100 years old, always invest in an inspection to prevent costly repairs and other hazards.

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Rainmaker
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Lola Audu
Lola Audu~Audu Real Estate~Grand Rapids, MI Real Estate - Grand Rapids, MI
Audu Real Estate~Grand Rapids, MI ~Welcome Home!

Serenity, these are good points for home buyers.  With regards to your third point about Assumptions, a lot of people are not aware of some of the new valuation methods that are being used by insurance companies.  Good post!

Nov 24, 2009 09:46 AM #1
Rainer
176,189
Julia Odom
Select Realty Professionals - Chattanooga, TN
Chattanooga Homes for Sale

Great tips. I'd add under budgeting to be ready for some expenses that you weren't expecting (increased energy costs associated with larger living areas, for example)

Nov 24, 2009 09:57 AM #2
Rainer
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Serenity Thompson
Tunmire Realty - Fort Worth, TX

Thanks Lola! I know in my neighborhood alot of the foreclosures now had nothing to do with an increase in the principal and interest payment, but the taxes and insurance. People lost their homes because they weren't prepared.

Nov 24, 2009 09:58 AM #3
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Rainer
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Serenity Thompson

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