Friday, March 28, 2014

Common Home Buyer Mistakes to Avoid



Problems that
Plague Home
Buyers

Unfortunately, home buyers can make very costly, common mistakes.  Whether a 1st time buyer or a season home buyer,  home buyers can cause themselves problems that will cost them time and money.

These are common only due to the fact that the home buyer doesn't consult a Realtor early in the process or seeks to save money in the home buying process.    Seasoned advise from a Realtor can help smooth the home buying process and help the buyer understand where money can be wisely saved.

Below are the challenges that every buyer should avoid:

1.  Limiting homes searches to generic listing
       sites like Trulia, Zillow and Realtor.com
        and other similar sites

     Challenge: 
         Numerous homes shown are
         already under contract and the data
         provided is typically less detailed than
         Multiple Listing Service information.
         
2.  Starting serious stage of home search
        with out select a mortgage company
        an attaining a pre-approval

     Challenge:
         Sellers typically require a bank pre-
         approval with any offers.  Buyer risk
         losing offer, thus time and money 
         when financing is not secured. In 
         addition, the buyer may risk being
         interested in a home beyond his/her
         means.  Or they can be disappointed
         by the homes toured but could afford
         the benefits of higher priced homes.

3.    Failure to clearly identify key factors required
           of desired home.

      Challenge:
         Realtor and Buyer waste time in homes
         that fail to meet buyer's needs.  A 
         clear definition of home location, 
         features, size, yard type, etc. are 
         required prior to touring the 1st house.
         Remember: Criteria can change as 
         search continues!!

4.   Failure to get a Home Inspection
       
      Challenge:
         Home Inspections are typically 
         declined by a home buyer to save
         money.  Failure to complete a
         home inspection with a licensed
         home inspector is a fatal error.

5.   Failure to get a Survey
       
      Challenge:
         Typically, in most states, a survey is 
         required to do any modifications to 
         structures on the property or to add
         an addition(even a swimming pool!) or          to fence the property. 
       
        Failure to get a survey as part of 
        home purchase process may cause the
        buyer to not be able to use the 
        property as desired due to unknown 
        easement, building set back and other
        restrictions.  Fencing present may also
        be shown to violate property lines.


 6.   Failure to get Owner's Title Insurance
       
      Challenge:
         The mortgage company will require a
         home buyer to purchase Lender Title
         Insurance, insuring the lender against
         any title defects or undisclosed future
         claims that were found through the
         title search conducted prior to final
         settlement.

          Home buyers believe Lender Title
          Insurance protects their title interest
          as they paid for this insurance. 
                    NOT TRUE!

          Owner's Title Insurance required to
          be purchased by a home buyer at
          settlement to protect the home 
          buyer from title defects due to:

           1. Prior stated Lender Title issue
           2. Wishing to Avoid Owner Title Fee


              
       




                                       

  
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