Expensive Mistakes Homebuyers should avoid

In a buyer’s market or a seller’s market, first time homebuyers as well as seasoned homebuyers should always be smart when shopping for a new home. In a buyer’s market where there is so much inventory to choose from, potential buyers can easily lose their focus. In a seller’s market, there isn’t enough inventory and homes go under contract so quickly, sometimes there’s just not enough time to really think clearly and make wise decisions.
Below are some tips that every homebuyer can make use of.
1. Make sure you get pre-approved for a home mortgage and most importantly, have it in writing. Most buyers need a mortgage for purchasing their home. Finding out what you can afford and feeling comfortable with your estimated monthly payment could be two different things. In addition, finding out earlier than later that there is a credit issue that needs to be cleared up will make all the difference in the world once you finally find your dream home. Potential sellers will not wait for you to clean up your credit. Be sure your final document from the bank says it is a pre-approval letter and not just merely a pre-qualification.
2. Work with an experienced real estate agent. Check the agent’s references and ask friends and family for a referral. Call the local real estate office in your town and ask for a recommendation. Visit their websites. Are they well organized and professional? It doesn’t cost you any more or any less to have your own real estate agent, no matter what you are buying, whether it is a newly constructed home or a resale.
3. Never consider a home that has a serious defect. No home is perfect but some homes have blemishes that no matter what you do, you can’t disguise it. Ask yourself if you are prepared to deal with this blemish on the selling end too.
4. Get a comparative market analysis before making an offer. Don’t assume every house is priced right for the market. Insist on a comparative market analysis before deciding on your offer. Licensed real estate agents have all the tools to do this quickly and efficiently for you.
5. Contingency clauses -- it depends on the market. In a fast and furious seller’s market most people try not to tack on any contingency clauses such as “contingent upon my home selling”. With multiple offers coming in, a seller will totally bypass your offer, even if it is a full price offer. On the other hand, in a buyer’s market a contingency clause regarding obtaining an appraisal of less than or equal to the purchase price and the buyer’s approval of a professional inspection report make good sense and should be considered.