#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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