Shopping for a new home is an emotional experience. It’s also time-consuming and comes with a myriad of details. Some buyers, however, caught up in the excitement of buying a new home, tend to overlook some items. Their home purchase, then, turns into an expensive headache.
Buyer errors generally fall into one of three areas:
- Paying too much
- Losing a dream home to another buyer
- Buying the wrong home
Avoid these costly errors with our tips and tricks:
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Error: Bidding without sufficient information
What price do you offer a seller? Is the seller’s asking price too high? Is it a deal? Without research on the market and comparable homes, you could lose thousands of dollars. Before you make that offer, be sure you have researched the market. A professional REALTOR can offer an unbiased opinion on the value of a home, based on market conditions, the condition of the home and neighborhood. Without knowledge of the market, your offer could be too much. Or worse, you could miss out on a great buying opportunity.
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Error: Buying a mismatched home
What do you need and want in a home? Sounds simple. Yet, clearly identifying your needs and bringing an objective view to home shopping, leaves you in a better position. Sometimes, home buyers buy a home that is too large or too small. Perhaps they didn’t consider the drive to work, the distance to school, or the many repair jobs waiting for completion. Plan ahead. Use your needs list as a guideline for every home you view.
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Error: Unclear title
Before you sign any final sale document, be sure the property you are considering is free of all encumbrances. Your REALTOR will connect you with a reputable title company that will research the property you are contracted to purchase. As part of their service, that title company will supply you with a copy of the title to ensure there are no liens, debts, undisclosed owners, leases or easements, as well as title insurance to protect you from anything they may have missed. Don’t just go to a courthouse or attorney’s office and sign a deed. You could be signing up for a lot of trouble down the road!
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Error: An Outdated survey
Before the purchase is completed, an updated survey is essential. This report will indicate boundaries and structural changes (additions to the house, a new swimming pool, neighbor’s new fence which is extending a boundary line, etc.).
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Error: Unexpected repairs
For $300 – $500 a professional inspector will conduct a thorough inspection of the home. This way, you’ll have an idea of the cost of future repairs. Be sure your purchase agreement contract is subject to a favorable report.
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Error: Shopping without pre-approval
It only takes a few days to get financing pre-approval. When you are shopping for a home, this gives you more power. A seller is more likely to consider an offer from a serious buyer.