Common Mistakes

Big Time Mistakes Buyers Make 

When Buying Homes. 

It is important for you, the buyers, to know and understand for whom the agent helping you is actually working for.  The agent may be working as sub agent - representing only the seller's best interests during negotiations - or as your agent representing your best interest during negotiations.  If you are not sure who your agent is working for - ask, they must disclose this.  Your agent must fully explain agency.  When you start negotiations wouldn't you want to know whether that Agent works for you or the seller?

Before you make an offer to purchase that special home, you must have a good idea what the market value is so you won't offer too much.  Your agent can prepare a Comparative Market Analysis (CMA) showing what similar homes have recently sold for, and the difference between the asking and selling prices.  Other things to consider are, did the Seller pay any closing cost or upgrades for the Buyer.  This is the same type of report the seller receives when deciding on an asking price.  Wouldn't you like to have the same information as the seller did?

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 stop all negotiations and lead to inflexibility on part of the seller - or worse yet - Back Fire!  If you have chosen your agent wisely, the best strategies for this particular situation will be revealed to you.  Remember, in the real estate business, and agent with many successfully closed transactions costs the same as someone who is inexperienced.  That experience could mean a better deal at the negotiating.

Buying a home is a major purchase.  It is worth ensuring you will not be surprised later with repairs costing thousands.  The inspector could also find possible defects.  Your agent can recommend several reputable companies for you to choose.  Even when buying new construction get an inspection!

It is important to understand completely the terms of the Offer to Purchase.  Wrong assumptions, poorly written of missing clauses, and not understanding how the clauses affect the purchase, can lead to increased costs or a void contract.  An experienced agent can thoroughly explain the agreement to you and help you to fulfill your contractual obligations.  

Buying a home is and exciting time and is usually an emotional one too.  It is important that those emotions be based on 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.

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.  An experienced agent can help you initiate this process and can also recommend alternative sources of financing.

Many times buyers avoid using the services of a agent under the mistaken belief that it costs them money - or that they will be able to negotiate a better deal directly with the seller of seller's agent.  This can be an expensive mistake.  If you are negotiating directly with the seller of seller's agent, you may not be taking advantage of the best deal available in the marketplace today!  You can have your own Buyers Agent who is committed to 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.

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!