1) – Not Being Pre-Qualified For Financing Before Looking
When you start to look, it is important that you know how much you can comfortably spend on a home. Getting pre-qualified for financing will lock down your price range and help prevent you from being turned down after falling in love with a home. It will also save you the strain of having to find a lender within a few days of conditionally buying a home. In times of fluctuating interest rates it would benefit you to lock in a lower rate. This could save you thousands of dollars if the rate increases while you are in the process of buying.
Be sure the lender you select verifies credit, income and assets up front. Let them know if you had a bankruptcy, foreclosure or short sale, if you are a cosigner on a loan, or if any pending judgements exist.
Work with your agent to be sure you know added expenses of a property like insurances, taxes, association dues. It's about the overall monthly payment more than the dollar amount. You may be qualified for a higher amount but when you add these costs to the monthly payment, it may not work for you.
2) - Failing To Seek Out The Services Of An Experienced Real Estate Agent
Many Buyers are unaware of the fact that in almost every case they are not responsible for paying the agent’s fees; the agent is being paid a commission from the seller. It is always best to seek out an experienced real estate agent that can use their information regarding recently listed and sold properties to get you the lowest price possible.
In Florida, we have Sales Associates and Realtors. Realtors are Sales Associates with addition education and accountability standards. Currently, there are over 319,000 real estate licensees in Florida. About 118,000 of them are Realtors. Only Realtors have access to the multilisting service and electronic lockboxes. Additionally, only Realtors have access to all National Association of Realtors, Florida Realtors, and their local Board of Realtor statistics, training, and support.
Statistics show that most agents do not work full time. Be sure your Realtor works full time in the current market so you get the best representation possible.
3) - Failing To Know Research The Market Before Making Your Offer
Have your agent prepare all the area sales and comparables in your area and get a copy to look over before you make your offer. This will help ensure that you do not overpay what the home is really worth. In most cases, this is the same type of information that the seller saw when setting the price of their home.
4) - Not Being Informed Of Your Rights & Obligations During Your Offer To Purchase
It is of the utmost importance to be aware of your rights and what to expect from a competent real estate agent. A small mistake in a condition or clause could end up costing you time and money, or in some cases even void your contract.
Be sure you understand disclosures, inspections, and lending practices and work with licensed professionals at all times to avoid costly mistakes.
5) – Not Understanding The Common Negotiating Methods Used At Offer Time
Some buyers have been told that the best way to get a good price is to low-ball the seller from the start in hopes that the seller will drop their price down fast in their counter offer. In reality this often does nothing more than upset the seller and will probably end up ruining the chance at an acceptable offer to both of the parties involved. Have good communication with your agent, and they will be able to inform you on the many proper ways to negotiate a deal and still get you the lowest price.
Negotiation processes are different in different areas. As your agent for the sales price to list price ratios in your area. Only a Realtor can provide this information to you.
In the current Florida Market, low ball offers are not working well and buyers are losing out. We are in a solid sellers market right now and you must adapt practices to that market.
6) - Failing To Use Home Inspection Company
Buying your home often times the most important investment and financial transaction that you will ever make. A home inspection can save you hundreds or even thousands of dollars and unexpected problems down the road. In addition to the inspection, it is often a good idea to request some type of Home Warranty to cover the electrical appliances that come with the home.
Florida inspectors must be licensed. Be sure to verify your inspectors license at http://myfloridalicense.com. Spend a few minutes not to avoid added expenses later.
7) - Letting Your Emotions Cloud Your Judgment
Buying a home is an important and exhilarating process! It is important not to let your emotions get the best of you and cloud your judgment of whether you can really afford to make the payments comfortably, and so on. Be sure not to get so excited that you get in over your head.
This is a big factor for many buyers.
At Innovative Realty Solutions Group, it's about the customer. You must find the right house, at the right time and at the right price!