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Agents can also tell you which houses did not sell and were withdrawn or expired.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
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
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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