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!
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?
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?
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.
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.
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.
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.
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! |