8 Big Time
Mistakes
That cost you money when
buying
your home
#1 Failing
to use the services of an experienced REALTOR. Many times
buyers avoid using the services of a REALTOR under the mistaken belief that it
costs them money - or that they will be able to negotiate a better deal directly
with the seller or seller's agent. This can be an expensive mistake.
If you are negotiating directly with the seller or seller's agent, you may
not be taking advantage of the best deal available in the marketplace today! You
can have your own REALTOR, a Buyer Broker or Purchaser's Agent, who is committed
to using the experience gained through hundreds of successful negotiations for
your benefit - at no charge to you! Your agent can be paid from the same
commission that the seller's agent is paid from - by the seller.
Real Estate is a unique business, where an agent with one day's experience
and no sales gets paid the same as an agent with several years experience and
hundreds of successful sales. An experienced agent can help you avoid the other
costly mistakes outlined here, and make your home buying experience an
enjoyable, stress-free one!
#2
Not
knowing who the agent is really working for. It is important for
buyers to know and understand for whom the agent helping with the house hunting
is actually working. The agent may be working as a sub agent - representing the
seller's best interests during negotiations - or as your agent representing your
best interests during negotiations. If you are not sure who your agent is
working for - ask for clarification. Your REALTOR must fully explain agency.
When negotiations commence, wouldn't you want to know whether information you
divulge will be used for the seller's benefit - or yours?
#3 Failing
to have a Comparative Market Analysis prepared before offering.
Before you make an offer to purchase that special home, you must have a good
idea what the market value is to ensure you do not overpay. Your agent can
prepare a Comparative Market Analysis showing what similar homes have recently
sold for, and the difference between the asking and selling prices. This is the
same type of report the seller receives when deciding on an asking price.
Wouldn't you like to have access to the same information as the seller?
#4 Failing
to recognize different negotiating styles and strategies. Many
buyers think that the way to achieve a fair purchase price is by offering low.
This is the strategy of the buyer who is not in possession of all the facts
essential to negotiating the best possible deal. Many times that type of
strategy will polarize negotiations and lead to inflexibility on part of the
seller - or worse yet - failed negotiations!
If you have chosen your REALTOR wisely, the most effective strategies for
this particular situation will be revealed to you. Remember, in the real estate
business, an agent with many successfully closed transactions usually costs the
same as someone who is inexperienced. That experience could mean a better deal
at the negotiating table with a minimum amount of hassles.
#5
Failing to have the home inspected by a competent home
inspection
company.
Buying a home is a major purchase usually made after spending just half an hour
looking at the home. Isn't it worth ensuring you will not be surprised later
with deficiencies costing thousands? Your REALTOR can recommend several
reputable companies for you to choose from, and will ensure the appropriate
clause is inserted in the offer.
#6 Not
knowing and understanding your rights and obligations set out in the Offer To
Purchase. It is important to understand completely the terms of the
Offer to Purchase. Wrong assumptions, poorly written or missing clauses, and not
understanding how the clauses affect the purchase, can lead to increased costs
or a void contract. An experienced REALTOR can thoroughly explain the agreement
to you and help you to fulfill your contractual obligations.
#7 Letting
emotion blind reason. Buying a home is an exciting time and is
usually an emotional decision. It is important that those emotions be validated
by facts and reason. An experienced agent will help to remove the emotion from
the negotiating process and provide you with the information you need to make
the right decisions.
#8 Failing
to take the steps to be financially pre-qualified, and having an interest rate
guarantee before looking at homes. Knowing how much you
can comfortably afford will ensure you are looking in the right price range and
prevent you from buying a home that will strain you financially and emotionally.
Having an interest rate guarantee will protect you in times of fluctuating rates
and ensure that your initial projected payments do not suddenly escalate,
resulting in extra interest charges. An experienced REALTOR can help you
initiate this process and can also recommend alternative sources of financing.
Being aware of these Big Time mistakes will help ensure you receive best value for your dollar
when the time comes to buy your home!
