Five Common Mistakes of Home Buyers
Buying a home can be a tedious proposition as anyone who has bought a home knows. But there are some steps you can take to reduce the tension and help you get into the home you truly want with a lot less stress.
1. The first error that many home buyers commit is that they do not “shop” for the real estate agent that will best suite their needs. Having the correct agent is the first critical step you should make when looking to buy – or sell for that matter. Your agent can be the catalyst between the sellers (or buyers), the mortgage agent, home inspector, and on and on. Who you pick for your agent depends a lot on what you need and how comfortable you are with this transaction. All too often people pick someone who knows someone, and they may not be the best choice for them.
I always, and I mean always, advise clients to have their own REALTOR represent them. Many times clients will look at a home during an open house and start talking with the agent on duty there. That agent on duty represents the seller. It is in your best interest to have your own agent who will represent you. Don’t get me wrong, the agent representing the seller will most likely do a good job representing both parties, but the critical test will be at the closing. Does that agent sit with you on your side of the table or do they sit with the seller?
In the majority of cases, there is no cost to the buyer to have their own representative. It is my strongest advice to buyers. Also, if you have an agent agreement, always tell any other agent you come into contact with. It helps keep the matters clear.
2. Shop around for a mortgage. Not all mortgage companies are the same and it is important for such a large investment that you get the right mortgage. Ask questions of any fees or issues you may not understand. Again, the mortgage representative should welcome any questions you may have. If they do not seem to want to answer your questions, find a different mortgage broker, it’s that simple.
Most of the larger mortgage companies will welcome any questions you may have. Don’t be afraid to ask questions.
3, Right now, it is a buyers market, but in time that will change. There are many homes to choose from and sellers will most likely be happy to receive any reasonable offer. However, it is important that once you have made a decision to make an offer on a house, to move quickly. The saying in real estate is “Remember, the house you looked at today, and wanted to think about until tomorrow, may be the house someone looked at yesterday, and wanted to think about until today.” You do not want to get into a bidding war with another potential buyer.
4. The age-old battle is that the buyer wants the lowest price possible while the seller wants the highest price possible. Many times a buyer will come in with an offer that is very low. The seller, who can counter offer, accept or reject the offer will many times either reject the offer outright or dig in their heels and not want to budge on the price of the home. Getting either side to start giving in can be a nightmare for a real estate agent.
If you are making an offer on a home, talk to your agent about the reasonableness of the offer. Remember, the seller wants to sell, and the buyer wants to buy. Getting them on the same page sometimes takes the patience of a saint.
There is nothing wrong with offering a low bid. If that is necessary to make the deal happen, that’s fine. There may be other areas that a buyer can compromise to make the deal more palatable to the sellers, such as a longer period before closing to enable them to move out or to find their next home.
5. The last item that I want to mention is to always consider re-sale. On average, homeowners stay in their homes from 4 to 7 years before relocating. First time home buyers, on average, stay in their home for 4 years. Those whose career requires relocations may move every few years.
Whether it is the schools or proximity to something of interest, resale should always be considered when buying a home. Researching the area to learn what is going on can be a big plus. If you learn that the local planning commission in entertaining the idea of a dump site, find out more information, it can affect your resale.
I have mentioned in many of my postings, your REALTOR can be a big help in sorting out these issues. Talk to a REALTOR to get the facts on what is going on in the market.
As always, if I can help with any of your real estate needs, please don’t hesitate to text or call me at 615 417-8182 or email me at RolandLow1@gmail.com.