Over the past fourteen years, we have had the pleasure of helping thousands of homebuyers. It is safe to say that I have seen just about every mistake that can be made by home buyers and sellers as a real estate agent and broker. Most of these mistakes are self inflicted; the good news is that these mistakes are easily avoided.
- No inspections. We have all seen the real estate programs where the investor decides to save a little money by not paying for a home inspection and/or termite inspection only to discover after closing there is significant hidden damage. While there may be legitimate reasons not to have an inspection (new construction), this is one step you should not skip over lightly.
- Trying to time the market. We all want to get the best deal available; the best price, the best interest rate, the best potential. We often witness great opportunities disappear while people wait for verification that a better deal is not around the corner. Experienced investors will tell you to look for a sound investment in the current market.
- Failure to understand the “local” nature of real estate. Real estate is big business and is featured all over the news these days. That being said; real estate markets in New York have little to do with what is happening in our market. What is typical in your town may not be the same here. Your real estate professional should be able to provide recent stats on what is happening in their local market.
- Not shopping by neighborhood. We see a lot of people utilizing the internet to shop for homes with little thought to the neighborhoods they are looking in. Generally speaking, homes in a subdivision are similar in value to other homes in the neighborhood. A $250K home will be surrounded by other similarly priced homes and so will a $50K home.
- Not all mortgage lenders are created equally. Talk to your realtor about local lenders so you can compare them to those internet lenders you have been in touch with. Learn what the local guidelines and challenges are so you can be assured that the lender you chose is ready, willing and able to assist you.
Buying a home is a team effort. Ideally your realtor, lender, inspectors, insurance agent and closing agents will all work with you and each other to make for a smooth transaction. When you work with a highly knowledgeable Realtor, you benefit from years of experience. There is a lot to know to make a sound purchase, don’t leave it up to chance.
