| Common Home
Buying Mistakes
Not looking at enough Houses for
Sale
Never worry that you may see too many
houses. It's almost impossible to look at too many houses. The more you
see, the more you'll learn about what you want and what each house is
worth. Don't let an impatient real estate agent try to close on a house
you do not want. If he or she is tired of showing you houses; there are
many more agents who will.
It is however time effective for both
you and the agent that you pre-determine as far as possible your broad
needs and wants before hand as to help the agent to identify the most
suitable house to show you.
Not making a low offer
Only make an offer for what you think
the house is worth. If the seller declines your offer you have lost
nothing. He or she can always make a counter-offer and you can
counter-offer again until you find a suitable price, or you can walk
away.
Not making the correct price
comparisons
Few houses actually sell for the
asking price so don't assess the value of a house only on the asking
price. Real Estate Agents are able to compile reports that reflect and
compare the selling price of similar houses recently sold in the same
area. (These reports are commonly referred to in the industry as
Comparative Market Analysis or “CMA”). Agents can also tell you
which houses did not sell and were withdrawn or expired. This will allow
you to make a more accurate decision whether the asking price is market
related.
Forgetting to calculate all
the costs
Remember when calculating the maximum
price you can afford to include all the many hidden costs you might
initially be thinking of. This can easily be as mush as 10% of the Home
Purchase Price and should be deducted of the total to leave you a safety
net.
To determine your specific circumstances ask a lending institution to
calculate your price range. They will do this for you at no charge, as
they need this information to provide a mortgage and hope to get your
business. Many real estate agents can also assist with this calculation.
Fear of losing a specific
house
Don't fall in love with the first
house you see. Also beware of getting hooked on a specific house so much
that you throw caution to the wind. There are many houses and houses
come onto the market all the time. Take your time, within reason of
course. Frequently the best deal is just around the corner.
Not looking past the interior
decorating or cosmetic improvements
Don't choose a house just because you
like the interior decorating. That is not what you are buying and
usually will go all go with the Seller when he moves. Look past any
cosmetics improvements such as recent paint and wallpaper, quickly
redone gardens, etc. Remember to check out the actual structure of the
house itself. You should also investigate the piping, roofing,
electricity, etc. Those are the things item, that if faulty, you will
have to deal with later on.
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