The top 5 mistakes

THAT BUYERS MAKE

Not getting pre-approved for a loan ahead of time

If you plan to pay all cash for your purchase, this obviously won’t apply to you. But for the other 98% of home buyers out there, we can’t recommend strongly enough the importance of getting pre-approved by a reputable mortgage company ahead of time. Here’s why. Even if you’re absolutely positive that you qualify for the loan you’ll need when buying a home, be aware that listing agents nowadays are advising their sellers not to even LOOK at offers if they don’t include a letter from a mortgage company stating that the buyer is fully qualified to complete the purchase. So even if you ARE fully qualified, you might miss out on the home of your dreams if you don’t have a pre-approval in hand! It also helps identify the exact price range we should be looking in. We often see buyers shopping for homes up to $850,000…only to find that the lender can only approve them for $625,000. Why go through that? Instead, we’ll put you in touch with a lender who will accurately tell us how much home you can buy. That way, you can shop with confidence and peace of mind!

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Hesitating to make an offer on a property

We understand that it can be a little unnerving when it comes time to make the biggest purchase of a lifetime. But here’s the thing. If you’ve found what you consider to be your ideal home, we recommend making an offer as soon as possible. We’ve seen too many instances where another buyer swoops in and buys the home you had your heart set on, simply because you were taking a few days to think about it. Don’t let that happen! There are built-in protections in every transaction that will afford you time to confirm it’s the right decision for you and your family. Call, and let’s talk about it!

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Making a very low-priced offer

All of us wish we could buy a million dollar home for just pennies on the dollar, but the fact is that doesn’t happen very often. Has it ever happened? Yes, probably at auction when an investor is paying all cash at a foreclosure sale perhaps. But for the typical home seller, they’re not going to entertain offers that are so low that they border on the ridiculous. In today’s market, we’re seeing homes actually selling for MORE than the listed price in many instances, so we don’t recommend blowing your chances of owning your ideal home just because it’s tempting to see if the sellers will accept 30% less than their asking price! Don’t worry, an appraisal will be done on the property to determine that you’ve paid fair market value. If the appraisal comes in higher than the amount you offered, great! You got a deal! On the other hand, if the appraisal comes in lower than your offer price, you’ll have the opportunity to renegotiate with the seller, or cancel without losing your deposit in most instances. We’ll discuss exactly how that works. Just give us a call!

Not getting a home inspection

Some buyers elect NOT to get a home inspection because the house “looked like it was in pretty good shape”. Really? Did the electrical wiring and circuits look good? Was the water pressure high enough? Is the flashing around the chimney on the roof in need of repair? Chances are, those things were not considered. For an average cost of $300-500 dollars (higher on very large homes), you can gain an awful lot of “peace of mind” when buying a home. Home inspections are performed by licensed inspectors, most of whom come from construction and home building backgrounds. They will perform a thorough inspection of the property, and identify any areas of concern, while backing it up with a highly detailed report including photos. We strongly advise every one of our buyers to absolutely get a home inspection, as it’s the most important protections you can have when making a purchase of this size!

Listening to poor advice

We understand completely. An uncle used to sell real estate 25 years ago, and he said you don’t need title insurance. Or an appraisal. Or your best friend feels that the builder should have put a different brand A/C unit in the home, or maybe it would be better if the water heater was a bit larger. You might be getting advice from people who possibly aren’t the best qualified. Real estate has changed drastically in the last 25 years. Title insurance guarantees that you’ll have clear title (ownership) to the property. The lender is going to require an appraisal, whether you want one or not. And people argue all the time over what brand air conditioner is the best, or what size water heater is right for a family of a certain size . The point is…we’ll offer our guidance and expertise throughout the entire transaction. We’ve been doing this a very long time, and while we will ALWAYS answer whatever questions or concerns you might have, we simply caution our buyers about advice provided by those who don’t do real estate every day. It can throw you off track and cause unnecessary concern. We’re on your side, and will take very good care of you. It’s our promise, our commitment, and our guarantee!

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