The present real estate market is a real estate Buyer’s smorgasborg…literally!
Due to the unfortunate reality of foreclosure for many homeowners, market inventory, across the country, is both plentiful and most often priced better than right. Here in Atlanta, savvy homebuyers and investors can take advantage of the over abundance of great properties just waiting to be bought. Many have been sitting for months. Drastic price reductions, government incentives, and of course, the assistance of a professional and knowledgeable Realtor, all contribute to a Buyer’s chance of being a first time homeowner or investor.
Why employ the services of a professional and knowledgeable Realtor? Before answering this very important question, ask yourself these questions: (1) why do I employ the services of a professional and knowledgeable physician?; (2) why do I employ the services of a professional and knowledgeable attorney?; (3) why do I employ the services of a professional and knowledgeable builder?…and so on and so forth. It’s pretty safe to assume, that knowledge and professionalism are important qualities for any business person desiring to be received as professional and knowledgeable to possess. It’s probably safe to further assume that Buyers and Sellers of real estate, depend on the knowledge and professionalism of the Realtor they employ to assist in their real estate transactions.
With all of this said, and with the often seemingly un-navigable sea of real estate facts, laws, clauses, addendums, attachments, contracts, titles, forms of ownership; governmental guidelines, types of mortgages, etc. etc. It’s quite possible (and it happens every day), that uninformed or misinformed Buyers get led to the well of home ownership, only to find themselves drowning in the waters of debt, foreclosure, eviction, and substantial financial loss. Before taking the plunge into home ownership or real estate investing, be sure to review the following common home buying bloopers.
HOME BUYING BLOOPER #10
Not fully understanding your total financial commitment. Your Realtor is legally obligated to provide you with bare minimal, service within the legal bounds of the property you contractually agree to. However, in making the move from renter/tenant to owner/owner, you must seriously consider the monetary commitment purchasing a home represents. Outside of your mortgage, there are costs associated with purchasing your home that many, if not most people fail to seriously consider. A professional and knowledgeable Realtor is licensed and trained to provide you with additional information which will prove invaluable in the long run, in helping you full understand the “opportunity of cost” of purchasing a home.
HOME BUYING BLOOPER #9
Failing to develop a long-term financial plan. Although the purchase of a home represents, for most, one of the most important financial accomplishments, it is merely a short-term accomplishment/goal. In the long-term, you need to evaluate why you purchased your home in the first place. Perhaps your long-term goal is to sell your newly acquired property at a profit, or perhaps parlaying it into income producing property. Either way, a professional and knowledgeable Realtor will be able to co-pilot you on to the landing strip of home ownership.
HOME BUYING BLOOPER #8
Relying solely on your own home listing hunt. If you are like the average real estate consumer today, you are Internet savvy and quite comfortable and capable of conducting home searches online, however, a professional and knowledgeable Realtor will have inside access to information and tools to assist you in making an informed and knowledgeable purchasing decision, often at half the time it would take you to prepare, present and negotiate on your own behalf.
HOME BUYING BLOOPER #7
Failure to do your homework! Don’t make the mistake of being enamored with the idea of owning a home and fail to conduct property research on the neighborhood of your intended purchase. Ultimately, it is your responsibility to conduct indepth research about the home you intend to “sign on the dotted line” for. A professional and knowledgeable Realtor can provide you with professional advice on where to begin your search.
HOME BUYING BLOOPER #6
Beginning your homesearch without first being prequalified for purchase. The process of prequalification gives you the detailed outline of just how, and if you are financial capable of taking on the responsibility of home ownership. A professional and knowledgeable Realtor will put you in contact with those individuals responsible for ensuring you receive financing for your home. Being prequalified is also a powerful negotiation tool to present to prospective Sellers. Your offer to purchase will be taken much more serious than those of competing Buyers, if your Realtor is able to present your offer to purchase real estate as being a preapproved Buyer. By doing so, you increase your chances of winning your bid, exponentially.
HOME BUYING BLOOPER #5
Putting on blinders. Allthough you may have the picture of your home in mind, be willing to be flexible in searching for and ultimately finding your dream home. A house that is in the right neighborhood, purchased at a competitive price, is much easier to renovate or sell and move up from.
HOME BUYING BLOOPER #4
Skipping the home inspection. Because purchasing a home entails maintenance costs you may not have incurred as a renter/tenant, it is vitally important that you search and narrow your home choices and then budget for the inspection of your ultimate choice. In hiring a licensed and certified home inspector, you make yourself aware of all possible flaws in your new home. This will also insure you are not caught off guard by these possible flaws.
HOME BUYING BLOOPER #3
Deciding against a home warranty. This extra coverage can prove to be invaluable as added protection against things that may go wrong in your new home.
HOME BUYING BLOOPER #2
Buying the cheapest insurance. Shopping for the right insurance to cover you, the home owner from unforseen calamity, is very important. Your insurance carrier should be reputable and client oriented. You will want to have a premium with a company which can be trusted to pay on any claims.
HOME BUYING BLOOPER #1
Choosing the wrong real estate agent. The Realtor you hire should have your best interests in mind and should take the fudiciary responsibilities a real estate license represents, very seriously. You should feel confident in the abilities and competencies of the Realtor’s services you should employ.
If you should take time to assess these common bloopers as well as to give some serious thoughts to the responsibilities connected with home ownership, you will be more likely to enjoy your purchase and turn the purchase of your home into a stepping stone to financial independence.
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