EIGHT MISTAKES TO AVOID
1. Failing to Use the Services of an Experienced Realtor
Many times buyers avoid using the services of a Realtor under the mistaken belief that it costs them money – or that they will be able to negotiate a better deal directly with the seller or seller’s agent. This can be an expensive mistake. If you are negotiating directly with the seller or seller’s agent, you may not be taking advantage of the best deal available in the marketplace today. You can have your own Realtor, a Buyer Broker or Purchaser’s Agent, who is committed to using the experience gained through hundreds of successful negotiations for your benefit – at no charge to you! Your agent can be paid from the same commission that the seller’s agent is paid from – by the seller.
2. Not Knowing Whom the Agent is Really Working For
It is important for buyers to know and understand for whom the agent helping with the house hunting is actually working. The agent may be working as a sub-agent – representing the seller’s best interests during negotiations – or as your agent representing your best interests. If you are not sure for whom your agent is working, demand clarification. Your Realtor must fully explain Agency. When negotiations commence, wouldn’t you want to know whether information you divulge will be used for the seller’s benefit – or yours?
3. Failing to Have a Comparative Market Analysis Prepared Before Offering
Before you make an offer to purchase that special home, you must have a good idea what the market value is to ensure that you do not overpay. This is the same information the seller receives when deciding on an asking price. Wouldn’t you like to have access to the same information?
4. Failing to Recognize Different Negotiating Styles and Strategies
Many buyers think that the way to achieve a fair purchase price is by starting the offer too low. This is the strategy of the buyer who is not in possession of all the facts essential to negotiating the best possible deal. Many times that type of strategy will frustrate negotiations and lead to inflexibility on the part of the seller – or worse yet – failed negotiations!
5. Failing to Have the Home Inspected by a Competent Home Inspection Company
Buying a home is a major purchase usually made after spending just half an hour looking at the home. Isn’t it worth ensuring you will not be surprised later with deficiencies costing thousands?
6. Not Knowing and Understanding your Rights and Obligations Set Out in the Offer To Purchase
It is important to understand completely the terms of the Offer to Purchase. Wrong assumptions, poorly written or missing clauses, and not understanding how the clauses affect the purchase, can lead to increased costs or a void contract.
7. Letting Emotion Cloud Reason
Buying a home is an exciting time and is usually an emotional decision. It is important that facts and reason validate those emotions. An experienced agent will help to remove the emotion from the negotiating process and provide you with the information you need to make the right decisions.
8. Failing to Take the Steps to be Financially Pre-Qualified and Having an Interest Rate Guarantee Before Looking at Homes
Knowing how much you can comfortably afford will ensure you are looking in the right price range and prevent you from buying a home that will strain you financially and emotionally. Having an interest rate guarantee will protect you in times of fluctuating rates and ensure that your initial projected payments do not suddenly escalate, resulting in extra interest charges.