1 – Doing It Yourself: House Hunting. 

 Running around to open houses might be fun, but it can waste a lot of time and gas money. Hire a Realtor. An experienced agent will be your best source of information on the local housing market. Their access to the MLS will allow them to show you all listings that meet your criteria as soon as they come on the market. They will help you negotiate the best possible price for your home. In fact, an experienced Realtor will help you avoid the mistakes on this list.

 2 – Not taking time to get pre-approved. 

If you are planning to finance your home, start with the mortgage application. Once you have the mortgage pre-approved, your agent will be able to show you the best homes that meet your budget. When you apply for your mortgage, you will find out if there are any issues on your credit that need to be repaired. Going through the pre-approval process first gives you time to correct any mistakes. For more information on improving your credit, read MyMortgageInsider’s.

3 – Closing costs.

  Many buyers are surprised to learn they have to pay closing costs on top of their down payment. Buyers and sellers split the escrow fees. Your lender will charge a loan origination fee. You will need to pay for the appraisal and any inspections. If the seller has pre-paid taxes, HOA fees, etc., they will be pro-rated from the date you take Title. Ask your agent and your lender to provide an estimate for closing costs. Bankrate recently published

4 – Neglecting the Home Inspection. 

Hiring a home inspector will cost you a few hundred dollars, but it can save you thousands. A professional inspector will confirm that everything is in operating condition. They will check breaker boxes, the HVAC systems, etc., and let you know if there are any problems. If the inspection uncovers major issues like mold or an HVAC unit that does not work, you may ask for repairs. Minor issues like a chip on the sink or a light bulb that needs to be changed should not become a deal-breaker. 

5 – Selecting the Wrong Real Estate Agent

 It is vital to a buyer to select the “right real estate” agent to represent their best interests. However what really makes a great buyer’s agent?

There are many things that a real estate agent must do to be; some may consider a great real estate agent a “jack-of-all-trades.” While this may be true, a great buyer’s agent should be seen as an adviser or counselor, not a “salesperson.” Also, they should be able to discover the needs and wants of a buyer, educate them on current market conditions, help buyers locate homes that can potentially suit their needs, and much more!

In addition to the real estate “skills” that a great buyer’s agent needs to have, one should also consider other things. It is important that a buyer feels comfortable with their real estate agent, as sometimes personal topics are discussed, such as finances. It’s also essential that a buyer understands how their real estate agent can communicate and determine if it will work for their situation. If a buyer prefers e-mailing, they better make sure their real estate agent can use e-mail and checks it regularly. Yes, we said it, can use e-mail!  If a buyer prefers text messaging, they better make sure their agent can text message! A great real estate agent should be able to adapt to their clients’ preferred method of communication!

6 – Not Listening To and Taking the Advice of the Real Estate Agent

Once a buyer hires the right real estate agent, it is time to listen to their advice and trust them! A buyer’s agent should be working in the best interest of their client, the buyer! An experienced buyer’s agent should have the knowledge to guide a buyer through the transaction.

When looking at homes, an experienced buyer’s agent should be able to point out important things to look for while walking through the house, so pay attention and observe them! Once a buyer finds their dream home and is ready to submit an offer, they must listen and take the advice of their real estate agent. An experienced real estate agent should supply information to a buyer to make a firm offer. This is extremely important if the buyer’s local real estate market is a seller’s market. In a multiple offer situation, not taking the real estate agent’s advice can be the difference between a buyer having their offer accepted or a different buyer’s offer accepted!

Having Unrealistic Expectations

Last but certainly not least, one of the mistakes that must be avoided when buying a home is having unrealistic expectations! When purchasing a home, the first thing that a buyer needs to understand is their local real estate market. And what their budget will buy them (their agent should help them with this). A pre-approved buyer for a $100,000 mortgage cannot expect to get a home that is 3,000 square feet, has four bedrooms, and has three baths. Buyers need to be educated on what their money will get them in the market. As listed above, a great real estate agent should help set realistic expectations and get their client a home they will love!

The following common mistake is being unrealistic when it comes time to make an offer. It is so common to hear, “Zillow’s “Zestimate,” said this home was worth $150,000, and it’s listed at $200,000; it is way overpriced, so let us offer $150,000!” Also, another common misconception that a buyer has is thinking that the “assessed value” is the same as market and appraised value. Everybody loves a deal, but a buyer needs to have realistic expectations when placing an offer on a home. Sure, a home can be overpriced by $50,000, but this is not the case for the most part, and a buyer shouldn’t expect to “steal” the seller’s home!

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If a buyer can understand what their money will get them and can have their offer accepted, another common unrealistic expectation results from a home inspection. Home inspections are a very common contingency in most real estate transactions. The primary purpose of a home inspection is to ensure the house doesn’t have any serious safety issues or deficiencies. The goal is not to have the seller replace and repair every little thing in the home. Certain items are more commonly found during a home inspection, but a buyer needs realistic expectations. If a buyer believes a seller will replace a furnace that is 10 years “old” because the home inspector said it was not as “efficient” as a newer furnace, it most likely is not going to happen. Having unrealistic expectations of what a home inspection is and what the purpose is will often lead to a buyer never getting past the property inspection contingency.

Buying a home is a big step and a significant investment in anyone’s life! And should make sure to avoid mistakes

 There are many emotions and feelings a buyer experiences. It’s important that a buyer stays focused and tries at all costs to avoid the above five common mistakes! While not easy, with the proper research, preparation, and professional advice, these and other mistakes can be avoided when buying a house