8
Big Time Mistakes
That
cost you money
when buying your
home.
#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.
Real
Estate is a unique
business, where
an agent with one
day's experience
and no sales gets
paid the same as
an agent with several
years experience
and hundreds of
successful sales.
An experienced
agent can help
you avoid the other
costly mistakes
outlined here,
and make your home
buying experience
an enjoyable, stress-free
one!
#2 Not
knowing who 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
during negotiations.
If you are not
sure who your
agent is working
for - ask for
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 your's?
#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
you do not overpay.
Your agent can
prepare a Comparative
Market Analysis
showing what
similar homes
have recently
sold for, and
the difference
between the asking
and selling prices.
This is the same
type of report
the seller receives
when deciding
on an asking
price. Wouldn't
you like to have
access to the
same information
as the seller?
#4 Failing
to recognize different
negotiating styles
and strategies. Many
buyers think that
the way to achieve
a fair purchase
price is by offering
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 polarize negotiations
and lead to inflexibility
on part of the
seller - or worse
yet - failed negotiations!
If
you have chosen your
REALTOR wisely, the
most effective strategies
for this particular
situation will be
revealed to you.
Remember, in the
real estate business,
an agent with many
successfully closed
transactions usually
costs the same as
someone who is inexperienced.
That experience could
mean a better deal
at the negotiating
table with a minimum
amount of hassles.
#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?
Your REALTOR can
recommend several
reputable companies
for you to choose
from, and will
ensure the appropriate
clause is inserted
in the offer.
#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. An experienced
REALTOR can thoroughly
explain the agreement
to you and help
you to fulfill
your contractual
obligations.
#7 Letting emotion
blind reason. Buying
a home is an exciting
time and is usually
an emotional decision. It
is important that
those emotions
be validated by
facts and reason.
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. An experienced
REALTOR can help
you initiate this
process and can
also recommend
alternative sources
of financing.
Being
aware of these Big
Time mistakes
will help ensure
you receive best
value for your
dollar when the
time comes to
buy your home!
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