9 Buyer Traps and How to Avoid Them

“A systemized approach to the homebuying process can help you steer clear of these common

traps, allowing you to not only cut costs, but also secure the home that’s best for you.”

 

No matter which way you look at it, buying a home is a major investment. But for many homebuyers, it can be an even more expensive process than it needs to be because many fall prey to at least a few of the many common and costly mistakes which trap them into either:


• paying too much for the home they want, or

• losing their dream home to another buyer or,

• (worse) buying the wrong home for their needs.



This important report discusses the 9 most common and costly of these homebuyer traps, how to identify them, and what you can do to avoid them:

 

1. Bidding Blind

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 the Wrong Home

What are you looking for in a home? A simple enough question, the answer can be quite

complex. More than one buyer has been swept up in the emotion and excitement of the

buying process only to find themselves the owner of a home that is either too big or too

small , too long of a commute to work or other various problems. Take the time upfront to

clearly define your wants and needs. Put it in writing and then use it as a yardstick with

which to measure every home you look at.

 

3. Unclear Title

Make sure very early on in the negotiation that you will own your new home free and clear

by having a title search completed. The last thing you want to discover when you’re in the

back stretch of a transaction is that there are encumbrances on the property such as tax

liens, undisclosed owners, easements, leases or the like.

 

4. Inaccurate survey

As part of your offer to purchase, make sure you request an updated property survey which

clearly marks your boundaries. If the survey is not current, you may find that there are structural

changes that are not shown (e.g. additions to the house, a new swimming pool, a

neighbor’s new fence which is extending a boundary line, etc.). Be very clear on these

issues.

 

5. Undisclosed Fix-ups

Don’t expect every seller to own up to every physical detail that will need to be attended to.

Both you and the seller are out to maximize your investment. Ensure that you conduct a

thorough inspection of the home early in the process. Consider hiring an independent inspector

to objectively view the home inside and out, and make the final contract contingent

upon this inspector’s report. This inspector should be able to give you a report of any item

that needs to be fixed with associated, approximate cost.

 

6. Not getting Mortgage Pre-approval

Pre-approval is fast, easy and free. When you have a pre-approved mortgage, you can shop

for your home with a greater sense of freedom and security, knowing that the money will be

there when you find the home of your dreams.

 

7. Contract Misses

If a seller fails to comply to the letter of the contract by neglecting to attend to some repair

issues, or changing the spirit of the agreement in some way, this could delay the final closing

and settlement. Agree ahead of time on a dollar amount for an escrow fund to cover items

that the seller fails to follow through on. Prepare a list of agreed issues, walk through them,

and check them off one by one.

 

8. Hidden Costs

Make sure you identify and uncover all costs – large and small – far enough ahead of time.

When a transaction closes, you will sometimes find fees for this or that sneaking through

after the “sub”-total – fees such as loan disbursement charges, underwriting fees, etc. Understand

these in advance by having your lender project total charges for you in writing.

 

9. Rushing the Closing

Take your time during this critical part of the process, and insist on seeing all paperwork the

day before you sign. Make sure this documentation perfectly reflects your understanding of

the transaction, and that nothing has been added or subtracted. Is the interest rate right? Is

everything covered? If you rush this process on the day of closing, you may run into a last

minute snag that you can’t fix without compromising the terms of the deal, the financing, or

even the sale itself.

This Free Report Is Provided Courtesy Of:

Greg Callaway, Broker

Gulf Harbour Properties, LLC.

15301 McGregor Blvd. - Ste. 2
Fort Myers, FL 33908

Contact Phone: 239-565-2766

Phone: 239-565-2766.
Please contact me if I can be of any assistance in your home buying or selling process.
Powered By:
Home