Purchasing
- Your first home
- Your next home and move
- An investment property
- A vacation home
Refinancing
- To tap your home equity
- To save money
- To avoid rate increases
- To lower monthly payments
Home Equity
- Loans and lines of credit
- Finance major expenses
- Consolidate Debt
- Invest
Don’t make these home buying mistakes
By Melissa Wirkus
Buying a home
is a very confusing and frustrating
process for the majority of first-time
purchasers.
The process can seem to take years
and years without any results, and
this is because many newcomers are
not educated on the home buying process
at all. Actually, many start the home
buying process completely blind, with
no prior knowledge.
You don’t want to be one of
those people. The more educated and
informed you are, the easier the home
process will be.
That is why it is important to avoid
some common mistakes that many new
homebuyers make.
A recent article posted on The International
Real Estate Digest by Erle Rawlins
III, “Mistakes buyers typically
make,” looks into some common
misconceptions that many buyers
make.
One of the things that many buyers
do that really dig them into a hole
is that they give away too much personal
information.
This could mean telling their limit
on a price to a homeowner’s
real estate agent before negotiations
even begin. Make sure you do not do
this.
“Buyers don't clearly understand
the roles and duties of real estate
licensees, especially who represents
whom in purchase
transactions, and may wrongly misinterpret
or rely on a licensee's actions as
representing the buyer's interests
alone. Buyers may innocently disclose
confidential and material information
about their buying needs, financial
abilities and negotiating strategies
to sellers and their agents, especially
when not aware of the roles of the
licensees involved in a transaction.”
Another big mistake that many potential
homebuyers make is not understanding
who pays for what in a transaction.
This could lead to people having very
unrealistic expectations when making
a purchase.
“Buyers think that sellers pay
real estate commissions as well as
other closing expenses and seller
concessions.”
Do not be a naïve and pompous
home buyer and think that the seller
must pay for everything, just because
we are in a buyer’s market.
In most cases, the buyer is required
to foot the closing cost and other
miscellaneous bills.
And last but not least, one of the
biggest mistakes a homebuyer
can make is not inspecting the property
themselves.
People think they can just leave the
inspections up to the professionals,
but it is extremely wise to get a
very good feel of the property for
yourself before buying.
“Buyers are usually unaware
of the importance of personally attending
and conducting thorough and independent
physical property inspections, environmental
audits and separate property
appraisals as a condition of the home
purchase.”