Don’t Make These 4 Home Buyers Blunders

Buying a home needn’t be a high-risk venture. With a little planning, preparation and the use of a knowledgeable real estate agent, you can avoid these common buying blunders.

Procrastination

How many times have you called on a property only to learn it was already under contract? It happens more often than you might realize, especially for the biggest bargains or areas in high demand.

Working with a real estate agent allows you to make your buying preferences clearly defined and then be automatically notified once a property that meets your expectations is listed.

Budgeting

Find out how much home you can afford by getting pre-qualified and pre-approved by the bank. Not only does it send the message that you are a serious buyer who is willing and able to close on the right property, it can also help the broker negotiate other terms, such closing costs, on your behalf to make the deal work.

Assumptions

Never assume that the taxes and insurance quotes for a property will remain the same after purchasing.

Property or homeowners insurance also involves your independent credit score as well as the history of the home and its condition.

Likewise, property taxes are often years behind or may have a cap placed upon them if the property was eligible for homestead exemption or other special limitations placed on tax increases.  Always obtain at least three independent insurance quotes on a property and obtain a newly revised estimate for property taxes before making a final offer.

Skipping Inspections

A complete, independent inspection is one of the best investments you might ever make, especially when it comes to purchasing a home.

Whether the home is brand new or 100 years old, always invest in an inspection to prevent costly repairs and other hazards.

How to Make Sure Your Home Is Priced to Sell

Pricing right is one of the most important aspects to selling a home.

Price too low, and you are leaving hard-earned money on the table or worse…you can actually create a reverse incentive for buyers to view the home since they may assume the property is in need of extensive repairs. Price too high, and the listing will languish on the market until everyone grows bored of seeing it.

Use these simple steps to obtain a ballpark figure on finding the right price for your home.

Obtain current comparable estimates. If you live in a neighborhood with similar-sized homes, try to find a recent sales example and then extrapolate the price per square foot to derive a rough rule of thumb. Increase or decrease the estimate based upon condition, age, upgrades and other amenities.

Include income potential. If the property is capable of generating an income via rental or other ventures, then use the profit potential of the property to estimate the return on investment or ROI. Most investors expect an ROI at or above the safe, headache-free option of investing in Treasury bonds.

Get a second opinion. Work with a real estate agent who specializes in that location to provide valuable feedback and a second opinion. Remember, if you expect a fast sale then search for all available properties and then plan to price your home near the bottom range of the properties currently listed and sold in the area.