10 Mistakes Buyers Make When Purchasing a Home

1. Not Choosing a Committed Real Estate Agent ~ As a real estate professional, agents must pass the state exam and complete a specified number of hours of post-licensing classes. Besides that, agents differ in training, approach, and attitude. So, it’s important for you to do your research before choosing an agent to help you purchase a home. Look for an agent that specializes in what you’re looking for new homes, resales, short sales, foreclosures, HUD homes, etc. Don’t be afraid to interview multiple agents. The right connection can make a difference, but remember that a good agent will be able to find you the perfect home in less than 3 months from when you are definitely ready to buy.
2. Not Getting Pre-Qualified Before Starting the Home Search ~ If you don’t meet with a mortgage lender before starting your home search, you could be wasting a lot of time and energy. A lender will analyze your finances and give you a price range of homes you can buy.  Without this initial assessment, you could be looking for overly expensive homes or cutting yourself short on your dream home.
3. Not Knowing All the Costs of Buying ~ Your mortgage lender can provide an estimate of all costs involved in purchasing a home, including home owner association dues, title insurance, etc. This will prevent closing surprises and will give you a full understanding of your responsibilities.
4. Not Using All Your Home Search Options ~ With the arrival of the internet, there has been a major shift in home searches. Less people are contacting real estate agents to start their home search and are relying more on online searches. There’s nothing wrong with that if you aren’t very serious about buying.  Matter-of-fact, starting your search online or reading local news ads gives you a better idea if you can afford to purchase a home or not. However, if that’s all you’re relying on, you’re missing out. Why? Real estate agents have access to much more detailed home searches and are the first to know when a new home comes on the market. They also have what’s called “pocket listings”. These are properties that are not marketed or entered in the multiple listing service, because the owners would like to maintain a certain level of privacy or are on the fence about selling (but would with the right offer!). Using a real estate agent can give you more options.
5. Not Being Flexible ~ Many buyers spend months imagining the perfect home – the features they want…the location…It’s great to have an idea of what you want, but being too specific can make you over limit your search.  Other buyers set their minds on one specific home and convince themselves that no others can compare. But not being open to all possibilities could cost you. You could end up overpaying in desperation or cutting out a great neighborhood you never realized was there. It’s your real estate agent’s job to know the area. They’re in different neighborhoods multiple times a year and they can point out areas you might not be familiar with, but have the features you want. You may be surprised by what they find!
6. Not Thinking Long Term ~ Your needs – both financial and personal – may change down the road. Are you planning to grow your family? What does the HOA limit? Does it affect potential personal needs? Is the community or home pet friendly? You might be able to afford an adjustable rate now, but what about in 5 years? It’s important to keep ideas like this in mind when making decisions that could affect future choices.
7. Not Doing Your Due Diligence ~ All concerns as about a home should be addressed as early as possible. If you are concerned about crime rate, schools, flood zones, power lines, future construction projects, etc. should be addressed before making an offer on a home. In North Carolina, after the offer is made, you will have a set amount of time called the “Due Diligence Period” to have the home inspected. If there are serious issues with the home or you are unable to come to an agreement on repairs with the sellers, you can pull your offer without risking your earnest money. It much more difficult to right any issues or concerns after the home is purchased.
8. Not Having a Home Inspection ~ This relates to doing your due diligence, but it’s so important it needs to be mentioned again. It may cost you additional money to have your home inspected, but it’s totally worth it in the long run. You could potentially purchase a home with major unseen issues that even the current owners are unaware of. It could cost you well over the amount you would pay for an initial home inspection.
9. Not Understanding Insurance ~ The amount of money that you spend on home owners insurance depends, in part, on where the home is located and how it is constructed. This is especially true in coastal areas like ours, where there are flood areas and owners are required to have Wind and Hail coverage. It’s very important that you consult an insurance agent as soon as you decide to make an offer on a home. The cost of insurance may affect your decision to buy a home.
10. Not Purchasing a Home Warranty ~ Home warranties cover the major systems and appliances of a home for one year from the purchase of your home for a nominal fee (see 210 Home Warranty Brochure (http://www.thecameronteam.net/agent_files/pdfs/New%20210%20Brochure.pdf)). If you’ve ever had an appliance or electronic break a few months after you bought it, you know how frustrating and costly it can be to get it replaced. A home warranty can potentially save you from a big headache later on and can, oftentimes, be negotiated into the sale agreement of a well made offer.

Source: http://www.thecameronteam.net/Buyer-Resources/

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