No one wants to be involved in a real estate deal gone badly. The process of buying a home is stressful enough, and you don't need potential pitfalls along the way to steer you off the right way to invest in the home of your dreams.
One big advantage successful real estate investors have is they understand the terminology that sellers, real estate agencies, mortgage lenders and the Internet use to entice you into buying a home. For example, if you see the term, "fixer-upper", you can assume that the home needs major work. You may spend less to buy it, but you want to make sure you're not spending more than you paid to fix it up.
The second mistake can be not knowing enough about the real estate agent you have entrusted with one of the biggest investments in your life. Take time to interview all potential realtors. Make sure that the real estate agent you go with is one that you feel comfortable with and will represent your best interest from start to finish.
A real estate agent can be helpful and can keep you from making some major mistakes. However, if you see that an agent is representing both you and the person selling the home, beware! Looking out for a buyer and seller under wrong umbrella should be a warning that you are in a no win situation.
Another problem always arises if you try buying a home without a pre-approved loan. Having a pre-approval gives you an edge with sellers. It tells them you are serious, qualified and know enough about real estate not to have the wool pulled over your eyes by any seller.
Always check comps in the area you are interested in. Find out what houses are selling for in the area, what sales have been in the past and how stable the neighborhood is in terms of sales. This can be done with the help of a realtor or finding Internet sites that help do the analysis with your input.
Education is the key to avoiding pitfalls whether you are buying your first or last home. It puts you in the position of being able to play fair game with sellers and almost guarantees you a rewarding home buying experience.
ABOUT THE AUTHOR:
Richard sells real estate in the San Gabriel Valley which is about 12 miles South of Los Angeles. For more information, visit his website at http://www.westsangabrielvalleyrealestate.com
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