1. Potential buyers believe they are well informed when they are not. There are hundreds of thousands of websites containing information about real estate. The problem is that all of these sites probably have at least one piece of accurate information on real estate transactions in your city, state and county. Which one piece of information is the right one? How many inaccuracies do you ingest before realizing you have the wrong information?
2. Skimping on Inspections. The Buyer is getting ready to spend several hundred thousand dollars for a home and yet they balk at paying a few hundred dollars for a good home inspection? At the minimum, plan on paying for a Whole House Inspection as well as a Wood Boring Insect Inspection. If Radon, Chimney, Structural or other is indicated, get them all done during the Inspection Period. This is your opportunity to find out about any problems with the house. This is part of doing your due diligence.
3. Getting a 'Pre-Qual’ Letter from some random 'lender' that has a reputation for not being able to perform. Do you know how awful you would feel if the money was not in place for you to complete your transaction on the day of closing? What would you do with all your possessions in the moving van? How long would it take you to cancel the utilities, cable, phone, and mail? Where would you go if someone else was moving into your old home the following day? How much money would you lose? What a nightmare! There are several local lenders with a good history of doing their job in a timely manner so that my clients can close on time. That’s why I refer them to clients. I receive no financial remuneration for recommending lenders; I only do so to make the entire buying process smoother for my clients.
4. Looking for the perfect home before applying for a mortgage. First off, many people lose out on the house they want because they are not prepared to make an offer so the house they really, really 'love' goes under contract to another buyer while they are just beginning their loan application process. Second, most sellers do not want unqualified buyers shown into their home. Third, responsible buyer's agents are not going to show unqualified buyers into homes. If they are, you've got to wonder what else they are doing that is not according to established laws, rules, procedures, and our Code of Ethics. Fourth, how about you find out that you only qualify for $280,000 instead of $375,000? All of the homes that you’ve seen in the higher price range are going to look better to you than the homes you can actually afford. There are more reasons but the idea is to positively identify the type of mortgage and amount so that your agent can plan your showing trips around homes that are going to work for you.
5. Buyers that think they can get a deal by speaking directly to the Listing Agent. Are you nuts? The Listing Agent represents the Seller. They have a legally binding, written contract promising fiduciary duties to their client. They have a pre-existing relationship with the Seller. Oh, you're some expert negotiator and/or really smart? Yeah, right, we've never before met anyone like you and your ego. I have never, ever met an unrepresented buyer who did not make a mistake and/or leave money on the table. Save on commission? Nope. Commission is negotiated between the Seller and their Agent before the property is listed for sale. The Buyer is not part of that negotiation.
Home Buyers Frequently Encountered Misconceptions
Home buyers, particularly first time buyers, usually start off with a number of misconceptions about buying a home. These are cleared up during our initial consultation. Following are some of the misconceptions I have encountered most frequently this past year.
6. Organizing their home search without professional assistance. There is a group of guys in Brookside who go to Open Houses every Sunday in the spring and summer. Each of them owns their own home and has absolutely no intention of moving. They just enjoy looking through all of the homes for sale in real life. I would trust them to coordinate a home showing tour because they've been doing it for years. (Of course, I would have to teach them how to use the CSS and MLS.) Most buyers use a variety of public websites, hand-written notes, and even spreadsheets. They have fun; they wander aimlessly; they feel tired and frustrated. I have access to professional software. It's expensive and robust. I have experience. (Also expensive and robust.) My clients often express delighted amazement at the difference between their efforts and my organized method of finding the right home for them. Is looking for a home a hobby or a goal for you?
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