Welcome Home: 10 costly mistakes homebuyers make
Protect yourself from these common pitfalls 1. Making an offer on a home without being prequalified. Prequalification will make your life easier, so take time ahead of a real-estate purchase to speak with a lender. Start with your own bank, or better yet, ask your Realtor for a local referral. In the resort market, some properties qualify for underwriting better than others. A local lender will have the best advice, and the best success record. Your lender will help you determine the price range you can afford, based on income, debt, etc. This is perhaps the most important step on the path to home ownership.2. Not having a home inspection. Trying to save money today can end up costing you tomorrow. A qualified home inspector will detect issues that many buyers can overlook.3. Limiting you search to open houses, ads, or the internet. Many homes listed in magazines or on the internet have already been sold. Your best resource for current listings is a Realtor! We have up-to-date information that is unavailable to the general public, including listings that are not in the MLS, or advertised in any way at the request of the seller.4. Choosing a real estate agent who is not committed to forming a strong business relationship with you. Making a connection with the right Realtor is critical. Choose one who is dedicated to serving your needs – before, during, and after the sale.5. Thinking there is only one perfect house out there. Buying a home is a process of elimination, not selection. New properties arrive on the market daily, so be open to all possibilities. As your Realtor for a comparative market analysis. This compares similar homes that have recently sold, or are still for sale.6. Not considering long-term needs. It is important to think ahead. Will the home suit your needs 3-5 years from now? Will is sell easily when your needs change? Will you be willing to sell it in changing market conditions. These are all things to discuss with the Realtor, to understand trends and how they may affect your future.7. Failing to choose adequate insurance. Purchase adequate insurance. Advice from an insurance agent can provide you with answers to any concerns you may have.8. Not buying a home protection plan. This is essentially a mini-insurance policy that usually lasts one year form the purchase date. It covers basic repairs you may encounter and can be purchased for a nominal fee. Talk to your Realtor – they will help you find the right protection plan, or they may even purchase it for you.9. Not knowing total costs involved. Early in the buying process, ask your Realtor or lender for an estimate of closing costs. Title company and attorney fees should be considered. Pre-pay responsibilities such as Homeowner Association Fees and Insurance must also be taken into account. Remember to examine your settlement statement prior to closing… to ensure accuracy, and understanding.10. Not following through on due diligence. Buyers should make a list of any concerns they have relating to issues such as – crime rates, schools, power lines, neighbors, environmental conditions, etc. Ask the important questions BEFORE you make an offer on a home. Be diligent so that you can have confidence in your purchase.TheTeam@Elich.com is at Re/Max Properties of the Summit, 305 Main Street in Frisco. Butch Elich & Paula Parker are longtime locals providing real-estate customers with award winning service. Find them at http://www.elich.com or search for them by name on Google, Twitter, or Facebook.
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