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1.
Not
having a plan: Having
a plan is important to avoid many headaches involved in the complicated real
estate transaction. Evaluate your current situation, make a list of
features, which are important for you and then communicate this information
clearly with your Realtor. This will help your Realtor look for homes that
match your criteria. A proper game plans will save you time and reduce the
hassle of shopping for a home. Spend a little time in advance and save a lot
of time and money in the future!
2.
Thinking
I cannot afford a home: Home
ownership is a durable investment and the tax laws favor home ownership like
no other tax shelter. Tax deduction alone can sometimes make owning a home
cheaper than renting. In addition, home appreciation and savings through the
payment of principal can build up saving in a short period.
3.
Looking
for a home to buy before listing your current home: If you make an offer on a property when you have not
yet sold your current home, it can cost you your negotiating power. In
addition, sellers do not want to wait for buyers who have to sell a house,
unless they are willing to pay top dollars. On the other hand, if you have
bought a new home, you may end up selling your existing one at a discount to
avoid incurring double expense.
4.
Failing
to properly screen your realtor: To find the best home at the best price in the shortest period, choose a
qualified real estate agent who is amiable, experienced, and motivated.
 5.
Failing
to be pre-approved for a loan: Do not waste hours and days searching for a home
that is not in your price range. Save time and money by having yourself
pre-approved for a loan. You will have a peace of mind and negotiating power
if you are approved for a loan. In addition, the seller is more willing to
deal with you and you avoid loan related problems after selecting a
property.
6.
Choosing
a loan solely based on interest rate: You should get together with an expert who
can explain the different types of loan program; each with its own special
benefits and specific requirements. There are several government and state
assisted loans to consider. Consider options such as 15-year versus 30-year
loan or paying versus not paying points, etc. Select a lender who has
knowledge and access to a wide variety of loan programs, who is willing to
help you choose the loan program that is best for your situation, not best
for the lender.
7.
Failing
to have a home fully inspected by a qualified inspector. Always have home inspections done by a
Professional Home Inspectors. Termite, Radon, and Toxic Mold are a few
necessary inspections. Make sure your sales contract provide you option for
the return of your deposit, canceling the contract, or bargaining for a
lower price to compensate for the cost of potential repairs. Without such a
clause, you are very likely to get into legal wrangling with the seller
later.
8.
Not
knowing you rights and obligations: Real estate laws are extensive and complex. An improperly written
contract can cause the sale to fall through or cost you thousands of dollars
for repairs, inspections, and remedies for title defects. You need to know
your rights and responsibilities and it is your agent’s responsibility to
keep you informed at every juncture.
9.
Failing to make your own inspection: Even before a professional inspection, there are many items you can check
yourself as you are shopping for a home, such as, structure, water damage,
water pressure, plumbing, wiring, energy efficiency, pest, etc. Ask to see
the seller’s survey when seller bough the house.
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