Homebuyer Beware: Don’t Make These 4 Costly Mistakes

By
Real Estate Agent with Joe Manausa Real Estate 8508880888

With almost 30 years of experience in the real estate industry, I have gained a lot of wisdom from the experiences of both buyers and sellers. Below, I’ve outlined four common mistakes that I have seen repeated by many homebuyers throughout the years and tips on how to avoid making them.

1. Failing to consider your current budget

One of the first things people should do when they are thinking about buying a home is meet with a real estate agent with expertise in working with buyers. They will assist you in assessing market conditions, prioritizing your wants and needs, identifying your most comfortable budget, and help you determine ways to get the most for your money.

In reality, most buyers start their home buying process by looking at homes online until they find one they are interested in visiting. Then, they are typically matched with a real estate agent through that property whose primary purpose is to sell that home, instead of working to optimize the buyers experience.

2. Not differentiating between needs and wants

Choosing a home can be a draining process. With an extensive list of features to look for in a potential home, finding just the right home can become difficult and confusing. Breaking your list of desired features into two categories, must-haves and wants, will make the process easier. Do you really need a fireplace, or could you do without one? What about a third bathroom? Knowing that a perfect home doesn’t exist and the difference between your “wants” and “needs” will make the home selection process much smoother.

3. Not recognizing true value

When numerous cosmetic updates are needed in a home, it can be difficult to see a home’s true value. Many times, buyers let the condition of a home disproportionately affect their valuation of it. We often see buyers choose a home in good condition over a home that, with some minor cosmetic updates, would be much more valuable for the money.

Remember, the value is “in the dirt”. Minor repairs such as replacing carpet or painting can be done prior to closing, so don’t let these issues overly affect your personal valuation of a home.

4. Failing to self-educate and ignoring reputable advice

A lot of the stress from buying a home can come from feeling like you don’t know as much as you should. A Chase Homebuyer Survey indicated that 80% of recent buyers were not happy and wish they had done things a different way. Take a moment to think about that… four out of every five buyers wish they had used a more effective process when they bought their home. Fortunately, there is no reason for a buyer to enter this process blind with the right online resources available.

Knowing about everything available to a homebuyer, such as warranties and negotiable costs, will assist buyers in getting the best deal possible when purchasing a home. The structuring of the offer to purchase can make a world of difference for many buyers.

Use the internet to find a buyer specialist that is well regarded by his or her previous clients. Look through Google to find agents with numerous reviews from past customers and take some time to read through the reviews.

Then, set up a time to see this well-regarded agent at their office to ask questions and determine your plan laid out above. Using a highly reviewed agent with a lot of experience can help to make sure that you have the best home buying experience possible.

Starting the home buying process with a good, solid plan is key. It’s ok to browse the internet and look at homes, but understand you’ll be making a big mistake if you start looking at homes in person before establishing your plan.  Team up with a homebuyer specialist and take the time to consider the tips above and you’ll end up loving your home and joining the satisfied 20% of homebuyers who were very happy with the home they bought and the process they undertook to purchase it.

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Re-Blogged 2 times:

Re-Blogged By Re-Blogged At
  1. Gita Bantwal 09/11/2018 04:23 AM
  2. Gabe Sanders 09/20/2018 11:00 PM
Topic:
Home Buying
Location:
Florida Leon County Tallahassee
Tags:
home buying tips
tallahassee real estate
tallahassee homes for sale
homebuyers
tallahassee realtor
real estate tallahassee
joe manausa real estate

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Show All Comments
Rainmaker
2,436,091
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

That's why we need in the know people...case in point or we risk unnecessarily

Aug 29, 2018 03:59 PM #1
Rainmaker
3,780,120
Dorie Dillard CRS GRI ABR
Coldwell Banker United Realtors® ~ 512.750.6899 - Austin, TX
Serving Buyers & Sellers in NW Austin Real Estate

Good evening Joe Manausa,

What an excellent well deserved featured post! 4 great mistakes we have seen buyers make and tips on how to avoid them.

Aug 29, 2018 05:15 PM #2
Rainmaker
868,086
Elyse Berman, PA
Best Connections Realty, Inc. - Boca Raton, FL
Boca Raton FL (561) 716-7824 CRS, ABR, GRI,ePR

Congratulations on the feature Joe Manausa !  You make excellent points.  The problem arises is if the buyers don't listen to the great advice they're given, which is a shame.  I recently had this happen, and it was unbelievable to watch.  

Aug 29, 2018 06:16 PM #3
Rainmaker
786,079
Kevin Mackessy
Blue Olive Properties, LLC - Highlands Ranch, CO
Dedicated. Qualified. Local.

Ignoring reputable advice is chief among these.  We had a buyer for one of our listings who didn't listen to his agent and instead bought a car for his grandson while he was in the middle of a transaction.  Well he missed closing, and we had to push it back.  If he would've listened to his agent this wouldn't have happened and our closing wouldn't have been delayed.  

Aug 30, 2018 12:57 PM #4
Rainmaker
32,751
Susanne Brown
RE/MAX Realty 9 - Howell, NJ
I work hard to make real estate dreams come true!

Many of today's buyers think they know it all because they do "research" on the internet. While there is a lot of information out there, it isn't always good. There is nothing like working with an experienced, knowledgable professional. Unfortuantely these buyers tend to think they know better than us. It is a tough seller's market here and I have seen buyers blow a great deal because they didn't listen to the advice of their agent. 

Aug 30, 2018 06:15 PM #5
Rainmaker
972,462
Jan Green
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Excellent advice for anyone looking to buy a home. First time home buyers would do well to seek your advice!

 

Aug 30, 2018 09:34 PM #6
Ambassador
3,939,966
Jeff Dowler, CRS
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude

Hi Joe

This is an excellent read for buyers! We see these issues, or variations, often, and they CAN be avoided.

Jeff

Aug 30, 2018 09:59 PM #7
Rainmaker
502,263
Mary Hutchison, SRES, ABR
Better Homes and Gardens Real Estate-Kansas City Homes - Kansas City, MO
Experienced Agent in Kansas City Metro area

# 2 and 3 are so important...and I think often require some explaination.  So many times I have said....look at what you can change and look at what you can't. Why is the 'location location location' phrase so true in real estate??  Easy to change decor, harder to change a floorplan!  There is going to be some sort of compromise.

Sep 01, 2018 12:32 PM #8
Ambassador
3,807,856
Kathy Streib
Room Service Home Staging - Delray Beach, FL
Home Stager - Palm Beach County,FL -561-914-6224

Hi Joe- excellent post and glad that it was featured. Often buyers are influenced by the thrill of the home and forget about some of the important factors. 

Sep 01, 2018 02:00 PM #9
Rainmaker
4,432,093
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Congratulations on the featured post. I hope buyers will read it.

Sep 08, 2018 05:01 AM #10
Rainmaker
4,913,020
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
Marketing Agent for The Todaro Team

Good morning, Joe Manausa congratulations on the feature and this is a list that provides good guidance for buyers.... 

Sep 11, 2018 05:00 AM #11
Rainmaker
3,213,923
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Divorce

In this too often age of  the "immediate gratification generation" the line between needs and wants gets blurred !

Sep 21, 2018 04:18 AM #12
Rainmaker
3,546,925
Sheila Anderson
Referral Group Incorporated - East Brunswick, NJ
The Real Estate Whisperer Who Listens 732-715-1133

Good morning Joe. What keen observations and really good focus on what really matters.

Sep 21, 2018 07:49 AM #13
Rainmaker
2,704,514
Lisa Von Domek
Lisa Von Domek Team - Dallas, TX
....Experience Isn't Expensive.... It's Priceless!

Hello Joe Manausa Great post and congratulations on the well deserved Feature!

Sep 21, 2018 09:46 PM #14
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