Read below 6 Common Mistakes Buyers and Their Agent Make That Could Cost Thousands.. or worse!
1. Not choosing the correct representation. Everyone knows a real estate agent. The number one mistake a buyer can make is choosing a part-time or inexperienced agent that is not familiar with the area. Many buyers think they will save costs by doing so, but this could cost a buyer thousands- and even their dream home!
2. Not preparing an offer correctly. In today’s market, many buyers are competing on properties due to lack of inventory. An agent and seller are not only looking for the best deal for the seller, but also the most solid, organized offer. Many agents use outdated contracts, do not submit a Pre Approval Letter or Proof Of Funds, and often times send offers over with incomplete information. Often times, the most solid buyer loses out on a home because of the lack of preparedness in the offer.
3. Choosing the wrong lender. A seller and their agent help choose the right offer, and after that, most of the transaction is in the Buyer side hands. This includes the lender they choose. The lender is in charge of selecting the appraisal management company, getting everything to the underwriter in time, and then everything to the title company in time. All lenders may be capable of providing you a product for your mortgage, however they do not all have the same work skills. You want a reliable lender, someone that has a great reputation, has a good working-relationship with the local top agents, and can get the job done.
4. Neglecting to have the property inspected. It is extremely important to make sure to hire an inspector to inspect the property during the early stages of the contract process. Many buyers feel because the home is “newer”, the expense of an inspection is not necessary. Even on brand new home construction, we highly encourage our buyer’s to have the home inspected, and any repairs discussed with the seller prior to moving forward. Most inspections range from $300-500, and while this may sound like a lot, this could save you thousands if a major issue is found. The inspector will evaluate the structure, mechanics and construction of a property and suggest the property protocol for any concerns that arise.
5. Settling due to emotions. We often hear about many buyers that try “settling” on a property. We want a buyer to be open-minded while viewing properties, as you may not get everything on your “wish list”, but too often a buyer settles on a home because they feel rushed or that they must find something now. Our team will recommend a buyer make a “must” list of items the property must have, and then add in their “wish list” items. As you search for your new home, you may find that you change those parameters, but you want to always make sure you do not settle from those “must” items. And it is important that your agent understand these items to help you make the best decision.
6. Not thinking about resale value. Buyers get caught up in emotions of a property, and fall in love. However, buyers also have a hard time seeing past today. You are making the decision to purchase a home, you probably have not thought of selling that home! Many of our buyers turn around and sell their home within 3-5 years. Find a home that works for you and your needs, but also ask yourself “If I had to turn around and sell this property, how easily could that happen”. The 3 bedroom, 1 bath, no garage home may work for your family, but how does it compare to others in the community if you needed to sell?
Don’t get caught up in any of the above mistakes when purchasing a home. Give The Christy Buck Team a call today to help guide you through the process. 832-264-8934