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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