10 Deadly Mistakes Buyers make when Purchasing Real Estate

Both Realtors and Buyers should know how to make buying a piece of property a positive experience for everyone involved. These 10 steps will help make that a reality.

10 Deadly Mistakes Buyers make when Purchasing a Home.

1.) Thinking there is only one perfect house out there.

2.) Limiting your search to open houses or ads.

3.) Choosing a Real Estate Agent who is not committed to forming a strong business relationship with you.

4.) Making an offer on a home without being prequalified.

5.) Not knowing total cost involved.

6.) Not considering long term needs.

7.) Not having a home inspection

8.) Not buying a home protection plan.

9.) Not examining insurance issues.

10.) Not following through on due diligence.

Thinking there is only one perfect house out there.

Buying a home is a process of elimination, not selection. New Properties arrive on the market daily, so be open to all possibilities. Ask your Realtor for a comparative market analysis. This compares similar homes that have recently sold or are still for sale.

Limiting your search to open houses or ads.

Many homes listed in magazines have already been sold. Your best course of action is to contact a Realtor. They have up to date information that is unavailable to the general public and are the best resource to help you finds the home you want. To start your search use a website on the internet that has an IDX search such as www.GreatCarolinaProperty.com and www.GreatGeorgiaProperties.com which are updated daily with new listings. That way, although not guaranteed, you are more likely to begin your search with active listings.

Choosing a Real estate agent who is unknowledgeable or not committed to forming a strong business relationship with you.

Making a connection with your Realtor is crucial. Choose a professional who is dedicated to serving your needs before, during and after a sale. So many Realtors are unqualified to give you the best service. Many don't understand contractual agreements, building codes, covenant and restrictions of neighborhoods, local crime rates, school quality and so forth. A knowledgeable, honest Realtor can mean the difference in a good purchase and a bad one. Beware of Realtors who can't tell you a downside to a particular property. They may not have YOUR best interest in mind.

Making an offer on a home without being prequalified.

Prequalification will make your life easier so take the time to speak with a lender. The specific questions in regards to income, debt, etc. will help you determine the price range you can afford. Banks are being very frugal in this lending market, although you may feel you know what you can afford the bank may not agree. Nothing is more disheartening than finding your dream home only to find that it is not within your reach. Prequalification is an important step on the path to home ownership.

Not knowing total cost involved.

Early in the buying process, ask your Realtor and Lender for an estimate of closing cost. Sometimes these costs can be negotiated with the seller so they can vary greatly. Be prepared for fluctuations in the cost depending on the property you decide to make an offer on. Inspection cost, Title company and attorney fees should be considered. Pre-pay responsibilities such as home owner association fees, insurance and taxes must also be taken into account. Remember to examine your settlement statement prior to closing.

Not considering long term needs.

It is important to think ahead. Will the house suit your needs 3 to 5 years from now? In the past with a strong economy it may have taken less thought about long term investments. You could easily buy a home as an investment and sell it in two years with out any loss or perhaps even a profit. But now times have changed, many people have found themselves with a home they no longer need and or sell. Be certain this is a home you will be comfortable with in the long run in case the market is slow to recover. Is your family growing? A house suitable for 3 toddlers now may not suit you as they grow. A big home now with 3 teenagers may be too big once they are grown and out of the house. A big yard to maintain may be great now but what if you become disabled? Could you maintain it then?

Not having a home inspection

Trying to save money today can end up costing you tomorrow. A qualified home inspector and an honest Realtor will detect issues that many buyers overlook. So many people make the mistake thinking why do I need these professionals? Only to find themselves paying too much for their home or a money trap. These professionals EARN their fees, and save you money in the long run. Don't be a fool and skip this step.

Not buying a home protection plan.

This is essentially a mini insurance policy that usually last one year from the close of escrow. It usually covers basic repairs you may encounter. It can be purchased for a nominal fee. Talk to your agent to help find the protection plan you need.

Not examining insurance issues.

Purchase adequate insurance. Advice from an insurance agent can provide you with answers to any concerns you may have.

Not following through on due diligence.

Buyers should make a list of any concerns they have relating to issues such as: crime rates, schools, power lines, neighbors, environmental conditions, etc. Ask the important questions before you make an offer on a home. Be diligent so that you can have confidence in your purchase.

Buying a home does not have to be a bad experience. With the right Realtor and a little homework on your part you can make a sound, quality investment. If you are looking for western North Carolina or North Georgia mountain property then let me, Gary Ward, be your Realtor. With over 12 years of experience as a Real Estate Broker and 17 years of living in the area, I know the difference in a good investment and a bad one.

Whether you want lakefront property, a Riverfront home, or just a mountain cabin. I can assist you in making a sound purchase you can be proud of.