7 Buyers Traps and How to Avoid Them
Buyer Beware:
No matter which way you look at it, buying a home is a major investment. For
many home buyers, however, it can be an even more expensive process than it needs
to be. They fall prey to some of the many common and costly mistakes which trap
them into either:
-
paying too much for the home they want,
-
losing their dream home to another buyer or,
-
(worse) buying the wrong home for their needs.
A systemized approach to the home-buying process can help you avoid these
common traps.
-
Not Getting Mortgage Pre-approval.
Pre-approval
is fast, easy and free. When you have a pre-approved mortgage, you can
shop for
your home
with a greater sense of freedom and security. It will also add
strength to your negotiations.
-
Buying the Wrong Home.
What are you
looking for in a home? A simple enough question, but the answer can be
quite complex.
More than one buyer
has been swept up in the emotion and excitement of the buying
process, only to find himself the owner of a home that is either too big
or
too small. Take the time up front to clearly define your wants
and needs.
-
Do Not Be Surprised.
Many buyers still
operate under the impression that it will take weeks or months to find
a home to buy. This is
not necessarily the case. The Internet has revolutionized home
buying, and
buyers are much more educated than they used to be. Be ready
to purchase immediately if you find the right home.
-
Bidding Blindly.
What
price should you offer when you bid on a home? Is the seller’s
asking price too high, or does it represent a great deal? If
you fail to research the market in order to understand
what
comparable homes are selling for, making your offer would
be like bidding blindly.
-
Undisclosed Fix-ups.
Do not expect every
seller to own up to
every physical detail that will need to be attended to.
Both you and the
seller are out to maximize your investment. Ensure that
you conduct a thorough
inspection of the home early in the process.
-
Hidden Costs.
Make sure you identify
and cover all costs—from
your lender as well as escrow—far enough ahead
of time. Understand these in advance by having your lender
project
total charges for you
in writing.
-
Rushing the Closing. Take your time
during this critical part of the process, and insist on seeing
all paperwork the
day before
you sign.
Make sure this documentation perfectly reflects your
understanding of the transaction, and that nothing has been added or
subtracted.
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