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
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
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.
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
4. Failure to get a Home Inspection
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
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
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
Home buyers believe Lender Title
Insurance protects their title interest
as they paid for this insurance.
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