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On the other hand, if you don’t know what you’re doing, it could be a costly experience that haunts you for years to come. In this brief article we’ll discuss some of the mistakes a first time home buyer is likely to make.
Mistake #1: Shopping For A Home The Wrong Way
With the advent of the Internet, a first time home buyer might think everything they need is online. That’s just not true. While the Internet does provide good information, there is no substitute for driving potential neighborhoods. Don’t rely on fancy pictures of houses. Or descriptions of property written by experienced sales agents. Instead, get in your car and drive around the areas you want to buy in. The best times to drive a neighborhood is between 5 pm and 7 pm. That’s when everyone is home and you get to see how the area and the people who live there really are.
Mistake #2: Working With The Wrong Agent
Real estate agents have one agenda: To sell houses. They make their money by bringing buyers and sellers together. Commission-hungry agents can sometimes overstate the merits of a house. You want to work with an agent who prefers to represent buyers. These types of agents – known as “Buyer’s Agents” – have a fiduciary responsibility to serve you the buyer. The seller’s agent works for the seller. By law, they can not be on your side. So make sure you get your own representation.
Mistake #3: Not Getting A Home Inspection
A professional home inspection can save you thousands of dollars. A first time home buyer I know decided to forego hiring a home inspection company. After closing on the deal a bunch of problems crept up. For instance: the shower drain caused a leak into an adjacent room. The furnace was so old it was spewing out carbon dioxide. These two problems alone – which could have been detected by a home inspector – cost over $5,000 to repair.
Mistake #5: Negotiating The Wrong Way
When it comes to getting the best deal on the market, you must know the seller’s situation. You will not get a steal from a seller who is not motivated. But a seller that is going through some hardship that requires they sell will be more likely to negotiate price and terms. The other factor to getting a great deal is knowing what kind of market you’re in. In a “buyer’s market” you’ll do well. In a “seller’s market” you probably won’t. So do your homework and find out the conditions in your market. Then, once you find a home you like, try to find out the seller’s situation before you negotiate. Otherwise, you might end up losing the house you fall in love with to someone else who did their homework.
There are a couple of other things to keep in mind. Financing is a key issue. Make sure you get pre-approved before looking for a house. Clean up your credit report before you see a lender to get the lowest rate possible. And remember: Start early in the process so you never feel pressured into anything.
Category: Real Estate5 First Time Home Buyer Mistakes To Avoid was written by:Author:John AnghelacheAdded: Fri, 20 Apr 2007 14:33:51 -0400 This Article Has Been Read 579 times View all John Anghelache's articlesAbout the Author: John Anghelache owns and operates http://www.medicalplansinfo.com Medical Plans |
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