8
Big Time
Mistakes
That
cost you money
when buying
your home.
#1 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!
#2 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?
#3 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?
#4 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.
#5 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.
#6 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.
#7 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.
#8 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!
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