10 Deadly Homebuying Pitfalls

10 Deadly Homebuying Pitfalls

May 5, 2016

From Merrimack Valley MA Real Estate

Buying a home is a big deal.  There are many home buying pitfalls a buyer can make.  This article will discuss some of the bigger pitfalls that can make your home purchase less than perfect. These deadly pitfalls can cost you tons of money, cause lots of aggravation or both!

Unfortunately many times a homebuyer will rush forward in the excitement and emotion of buying a home, only to get extremely frustrated with the home buying process or find out they made a mistake later on.  Find out at the end of the article how to avoid these 10 Deadly Home Buying Pitfalls.

1 - Not Understanding Agency

Real Estate Agency is a misunderstood topic by many and can create many problems if not fully understood.  Basically, agency is how a real estate agent works for you and will interact with you in a real estate transaction. It is a “legal relationship” you have with your agent.  One mistake many buyers make, is buying a home at an open house directly from the listing agent. 

The listing agent or sellers agent, owes the seller fiduciary responsibility….. their job is to secure the highest and best offer possible on the property… their duty is to the seller, not you the home buyer.  They are to legally give every advantage to their seller even at your expense.

A Buyer’s Agent on the other hand owes the home buyer fiduciary responsibility.  Every home buyers has the right to use a buyer’s agent.

2 -  Not Getting Pre-Qualified Before Looking at Homes

Looking at homes is fun! Talking about money or lack thereof is not!  Getting a proper pre-approval letter will head off tons of aggravation and heartache from the beginning. 

A proper pre-approval will ensure you are looking at the right homes, let you look with confidence and can even be used as a negotiating tool.

You will also be having dialogue about programs and interest rates with your mortgage officer prior to finding a home.  There will be no surprises by the time you submit your mortgage application on a specific home.

3 - Not Seeking The Proper Professional Help

Don’t think you can learn everything you need to know about buying a home on the internet.  Real estate is dynamic and markets change quickly.  An article written a year ago can be outdated. 

One thing I can say for certain is as a home buyer you don’t know what you don’t know.

There are buyers agents that can help you buy, plus you have mortgage bankers, home inspectors, real estate attorneys, appraisers, home improvement contractors and more…. Each can play a vital role in your home purchase.  Saving $500 by not having a real estate attorney review your purchase contracts or skimping a $100 to get a cheaper home inspection is penny wise and pound foolish. 

Everyone of these professionals are immersed in the business of real estate 8+ hours a day.  Every day, every closing and every client bring them more real estate experience to help serve their next client.

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