10 Home Buying Mistakes To Avoid
- Buying A Home Without Representation
Buying a home can seem simple at first, but there is a lot more that goes into it than you may realize. On average 50 people are involved in the buying process of your home. You want to make sure you have someone looking out for you, and navigating you throughout the process. The seller of the home pays the commission of the buyer’s agent. A buyer’s agent has a fiduciary duty to look out for your best interest. It is a win-win situation so you are not uneducated and alone when it comes time to sign contracts.
- Not Knowing Your Representation
It is important to understand the “Definitions Of Working Relationships” when buying a home. A buyer’s agent represents the buyer and looks out for their best interests. Similarly, the seller’s agent represents the seller. A “Transaction Broker” is an agent who is handling both the buying and selling sides of the transaction. In this instance neither the buyer nor seller are getting proper representation. The transaction broker can only present but not advise on the transaction.
- Not Researching To Find The Right Agent
There is an abundance of Realtors to choose from. Finding the right Realtor is as important as finding the right home and the right deal for you. Read reviews and research the service provided by multiple agents to make sure you are finding the right one to work with. This is especially important if you are relocating. Not all REALTORS® specialize in Relocation, and you want to have one that is going to help make your move a smooth, enjoyable and successful one.
- Not Asking Enough Questions
There are a lot of questions you may have when buying a home. Don’t be afraid to ask. There are no stupid questions, and it is better to be safe than sorry. Your agent should be knowledgeable and happy to answer any question you may have. If not, find a new agent.
- Not Getting Pre-Approved Before Looking At Homes
One of the first and most important steps when buying a home is to get pre-approved for a home loan. It would be unfortunate to fall in love with a home priced at $350,000 only to find out you are approved for $200,000. Currently, in Colorado it is a very hot seller’s market due to a lack of inventory. Sellers are much more likely to accept an offer if it has a solid pre-approval letter included.
- Not Taking Into Consideration All Of The Costs
Keep in mind, there are some costs associated with buying a new home. Some of these costs to consider are Ernest money deposit (approx. 1% of purchase price), Home Inspection (ranges from $250-400+), and Appraisal ordered by lender (ranges from $300-$600 depending on lender).
- Finding A Home That Doesn’t Fit A Majority Of Wants And Needs
Make sure the home you are buying is going to fit a majority your family’s wants and needs. It is unlikely that you will find a home that has absolutely everything you could ever want. You want to make sure that the home will be practical for your family. Such as a good location for work and school. Maybe a nice fenced yard if you have a big dog. We advise that you try to find a home that will meet at least 80% of your wants and needs.
- Not Getting A Home Inspection
We believe this is a wise expenditure of around $300-$400. It would be a tragedy to sign contracts and move in only to find out the roof needs replaced after the first rain. Getting a home inspection and catching the issue with the roof early on is a much better idea than paying an exponential amount to repair it later. You can always negotiate the issue and the terms with the seller.
- Not Making A Solid Offer
Putting your best foot forward is a good idea if you want to have your offer accepted. Especially if you really love the home and it is perfect for what you are looking for. Negotiations are an art. You can often get the seller to meet you in the middle and agree to many of your terms. However, you do not want to offend them with a low-ball offer and make them decide to go with a better offer. A hot sellers market will make for more multiple offer situations and can drive the price of the home up.
10. Not Purchasing A Home
Buying a home is one of the greatest investments in a person’s life. Renting a home is just helping someone else build equity. If you are patient, you will likely find a home that is a great fit for you. Do not give up. Be diligent and constantly search for the best candidate. Also, keep in mind your loan pre-approval does not last forever and if you wait to long you will have to start the entire process over again.
All Things Real Estate prides ourselves on being Colorado Springs Real Estate concierge. Providing our clients anything, and everything they need.
All Things Real Estate is a part of Premier Real Estate Group.
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