Monday, January 14, 2013

How to buy a home - Avoid 10 most common Mistakes


HOW TO BUY A GREAT HOME… The Easy Way!

How to Avoid the 10 Most Common Mistakes.

 
Buying a home can be an overwhelming experience. You may encounter a roller coaster of emotions while searching for the right house to call home. For most of us, a home purchase is the biggest investment we will ever make. The emotions associated with purchasing a home can often cloud your judgment. Don’t worry! It will all work out.

Most people who purchase a home do not do much research before their purchase if they do any research at all. Doesn’t it make sense to make your choice after first being informed? But where do you get all the information you need? Don’t worry this little guide will help you avoid making the 10 most common and crucial mistakes.

 

  1. Inspect, Inspect, Inspect- Although a home inspection is optional and typically paid for by the buyer, this money could be the most important $225-$425 you will ever spend! Order a home inspection by a professional. Go over the report thoroughly. Review the restrictions (CC&R’s), By-Laws, and Association Fees with your agent. Be comfortable that you can live with any rules and regulations placed on the property.
  2. Imagine the Property Vacant-Your furnishings will be the ones filling this new home. Don’t let current beautiful features, furniture or disliked features or furniture sway your decision to buy the home or not, they will leave with the owner, and if buying a new construction remember there is a reason they are called “Model” homes.
  3. Income + Lifestyle=Mortgage Payment- Sit down with your lender and real estate agent and honestly discuss your income level and living expenses. Take into account future considerations, children, add-ons, amenities, and fix ups. Don’t over extend yourself, or be able to have enough for incidentals or entertainment.
  4. View Several Homes- See at least 10-15 properties with your agent. Don’t move too slowly but don’t move on the first property you see. With your agent’s help you should be able to view enough properties to get a good overall perspective of the market. When you find the right home for you all the legwork will be worth it.
  5. Utilize Your Team- By aligning yourself with the right real estate professional you will have an entire team at your disposal. Utilize your lender, title rep and agent. They are all working hand in hand for your benefit. Explore all your options.
  6. Be Colombo- Check out all the costs and expenses before your 10 day inspection period is up. Utilities, taxes, insurance, maintenance and homeowner association dues if applicable. A good agent will make sure all the utilities (gas, electricity, and water) are on during your walk-through so you can inspect everything in working order. Inspect the area, talk to your future neighbors. ASK LOTS OF QUESTIONS.
  7. Do a Final Walk Through-Visit the property before closing to make sure there are no surprises. Be sure the property was in the same condition as when you wrote the contract on it.
  8. Plan for Flexibility- Closing dates are not written in stone. Allow for flexibility and have a backup plan. If you or the sellers need a little more time to conclude the final arrangements, don’t let these delays upset or frustrate you. These types of circumstances are not uncommon in a real estate transaction.
  9. If It’s Not In Writings, It Doesn’t Exist- All promises and discussions must be in writing! Don’t make any assumptions or believe any assurances. Even the best intentions can be misinterpreted. A good agent will keep an ongoing log in writing of all discussions and get the seller’s written approval on all agreements.
  10. Loyalty Breeds Loyalty-Be open, honest and up front with your team. Hard feelings and disloyalty will cause headaches, delays or may even keep you from getting into the home you worked so hard to find. Take the time to select the right team in the beginning and your home purchase will be pleasing and memorable experience.

       Leave it to a professional to help you have the smoothest experience possible.

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