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.
When
buying a home, 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
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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 before looking at real estate
for sale 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
mistakes will help ensure you receive best value for your dollar
when the time comes to buy your home!
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