Nine Buyer Mistakes and How You Can Avoid Them!
When getting ready to purchase a home, whether you’re a first time buyer or this is your 20th home, it’s wise to know that there are some details that are easy to miss if you don’t know what to look for. When beginning the process to buying a home, be sure to go over all of the steps of the process with your agent. Ask any questions you might have so that you are clear as you take the steps toward owning your dream home!
Here are nine different things that could trip you up on the way to the closing table:
1. Making an offer without understanding the market:
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 blind. Without this knowledge of market value, you could easily bid too much, or fail to make a competitive offer at all on an excellent value.
2. Buying a home that doesn’t fit your needs:
Buying a home is very emotional. It’s important during the process to think wisely about what you are looking for and what will fit your needs. Can you afford the payments? Is it big enough? Is it too big? Will you get tired of the commute? Have I talked to the neighbors? Be sure that you are looking at every angle and getting good professional advice before you buy.
3. Not checking your Title Commitment before closing:
I use the best title companies in Colorado for issuing title and title commitments. You will want to be sure that you use reputable companies to issue your title and go over your title commitment before closing to be sure that the chain is clear.
4. Failure to get a survey or an ILC.
Be sure you request an updated property ILC which clearly marks your boundaries and improvements. Your agent should know someone Be sure that there are no encroachments to your property and that the improvments on the land are as shown on the ILC. If they are not there needs to be time in the .
5. Missing items that compromise the integrity of the home:
Seller’s are required to disclose any known major physical defects. Go over the Seller Property Disclosure with your agent! Be sure that you check all of the items that are listed. Ensure that you have a professional and reputable inspector do a thorough inspection of the home early in the process. We usually ask for less than 10 days for inspection and the objection.
6. Not getting a pre-appoval or pre-qualifying:
Meet with your lender and get a quick and easy pre-approval and a pre-approval letter. This will show the seller that you are serious and ready to purchase.
7. Contract Misses
Keep a close eye on your dates and deadlines in the contract. All of the important events in the buying of your home will be dated on the contract. Your agent should be following these closely for your benefit, but the contract is between YOU and the Seller. Take as much responsibility as you can
8. Hidden Costs
There are costs associated with the purchase of a home that you might not be aware of. There are closing fees, insurance fees, possible administrative fees, filing fees, origination fees on loans and possibly more. Your agent should go over these costs with you to show you what is normal and how those fees and costs will affect your closing.
9. Rushing the Closing
You will want to make the closing as quickly as you can without rushing the process. There needs to be time for the lending institution to perform its due process, which is usually 30-45 days. The seller will of course want it to be as quick as possible. Be sure that you and your lender discuss the options for closing and how you can facilitate those options. Give the lender time to do the job within reason.
We hope that this information was helpful to you! Please be sure to call me directly with any questions or if I can help you find the home of your dreams! 303-898-9000