Whether you are a first time home buyer or seasoned real estate expert I wanted to put together some tips for you when you get out there and purchase your next home because let's face it now is a great time to buy, interest rates are lower than in previous years and home prices are lower than they have been in 10 years. So grab some coffee, tea or your preferred beverage of choice and take a look at some things to consider when buying your next home.
10 Mistakes buyers make when buying a home
1. Making on offer on a home without being pre qualified. Take some time and meet with your lender to get pre qualified. This will save you time and money because at the end of the day when you find the perfect home and you want to make an offer you will have a clear idea of just how low or high you can negotitate to the best price.
2. Not having a home inspection. A home inspection is a great way to find out before you finalize your home purchase to find out what kind of repairs or maintenance you will have to spend to maintain your home. Failing to get an inspection will cost you more money than the initial home inspection fee.
3. Limiting your search to open house ads or the Internet. Many homes that are listed online or in the newspaper have already been sold. Contact a Realtor so you can get info on homes before they hit the market or are advertised. I provide a complete list of homes that are not on the market or are bank owned/REOs and you can call me to get this list anytime by sending me an email or by calling my 24 information line at 800-627-0994 Extension 1400.
4. Choosing a real estate agent who is not committed to forming a strong business relationship with you. It is crucial you find a Realtor who is committed to your needs before, during and after the sale. My business is based on working by referral and as such I often am working with my clients friends, family, co-workers or church members and I pride myself on never being too busy for your referrals.
5. Thinking there is only one perfect house out there. When house hunting it is especially important in this market with short sales and foreclosures to not lose sight of other houses on the market. Houses come and go on the market every day and you should consider and compare as many houses as possible so that you can find the right house. I provide my clients with a market analysis so they can easily compare square footage, features and prices in the marketplace so that they can make an informed decision when buying a home.
6. Not considering long term needs. Keep in mind that when buying a home you will need to live in it for a number of years and if you will be expecting a baby, downsizing, or making life changes your home will need to fit your life changes.
7. Not examining insurance issues. Be sure to consult an insurance advisor to determine your homes insurance needs. Based on your area you may need specific coverage and policies and an insurance adviser can answer these questions and help you determine the best coverage for your needs.
8. Not buying a home protection plan. If you are looking to save money by not buying a home protection plan reconsider because a home protection plan is really a mini insurance policy that lasts for up to one year form the close of escrow. During your first year of home ownership it is always great to have some security in knowing that you will be covered for minor repairs. I advise my clients to purchase a policy before closing escrow. For more details on home warranty coverages and plans go to www.ahswarranty.com/homeowners/ourproducts/ourproducts.html
9. Not knowing total costs involved. To help my clients prepare for closing and before submitting an offer I give them an estimated closing costs sheet that goes over in detail the expenses required for the purchase of the home so that at the closing table there are no last minute surprises. This also helps buyers know exactly how much home they will be able to afford and is a significant tool for negotiating price when making an offer to purchase a home.
10. Not following through on due diligence. Take some time before writing an offer or beginning the process of buying a home to make a list of concerns, things that are important to you, familiarize yourself with area schools, environmental issues, crime rates and any other influences that may affect your happiness over time in your home.
If you are ready to make a home purchase please take some time to consider the points above and when you are ready contact me.