Biggest mistakes home buyers make
Top 5 mistakes home buyers need to avoid
Time to buy a home? Make sure to avoid these 5 mistakes…you could miss-out on that perfect home.
Top 5 Mistakes Homebuyers Need To Avoid
- Make sure you have access to the entire marketplace
- Stop! Don’t call that sign in the yard. Work with a Buyers Specialist with a smart home buying strategy
- Have a good understanding of your motivation and timeline
- Use caution when deciding on buying big ticket items before your home closes
- Be ready and approved to make offers
Access to the entire marketplace
It is surprising but all agents don’t have the same level access to all the Multiple Listing Services available. This means that if the agent you are working with is not a member of all of the MLS (multiple listing service) available in your desired area, you could be missing out on homes that fit your criteria.
It is also important that you choose an agent with a wide network of resources outside of the multiple listing services.
Some of these resources include bank owned properties, foreclosures, corporate owned homes, government owned homes, pre-foreclosure homes, homes in probate and estate sales, distressed sellers who are forced by the court to sell, homes not yet listed, and homes with recent price reductions.
Work with a Buyers Specialist
Don’t call the sign in the yard!! Calling a sign in a front yard will put you in touch with the sellers agent. Some traditional agents work with both buyers and sellers which means that they could be potentially working on both sides of the transaction. Who are the agents actually representing?
A buyers specialist only works with buyers. That means they only represent the buyer in the transaction and there is no chance of a conflict of interest.
Buyers Specialist also have an advantage because they are specialized. Which allows them to focused on the active inventory finding the perfect homes for their clients. Agents that work with buyers and sellers often don’t have the time to keep track of all the inventory while also dealing with the time draining aspects of listing homes.
Another advantage of working with a Buyers Specialist is they know how to win homes in a competitive market. This is because top buyers agents write multiple offers a week, they have excellent insight into the kinds of offers that are winning.
Have a good understanding of your motivation and timeline
Your buyers specialist agent will need to know just how motivated you are. This is always about communication. A huge mistake homebuyers make is not communicating with their agent about the timeline that they want to achieve. This can be tricky in a competitive low inventory market place.
Buyers Specialists can craft offers to be more aggressive or less aggressive depending on the situation. The worst thing that can happen is a homebuyer missing out on the perfect home because of a few thousand dollars, which they would have probably paid to win the home.
Be very clear with your buyers agent on each offer you make. And update them if there is any change in your urgency level.
Use caution when deciding on buying big ticket items before your home closes
Stop! Don’t buy that new car yet! One of the biggest mistakes a homebuyer can make is to make drastic changes on their credit score. Changes in the debt to asset ratio could delay the purchase of a home.
Lenders give pre-approval letters based on the financials of the homebuyers, if some of those categories change drastically so does the amount the bank will most likely lend out to you.
Make sure that talk with your lender before you make any large purchases that require payments.
Be ready and approved to make offers
“That home is perfect! I just have to get a pre-approved for a loan….and it’s gone….the home is under contract before I was able to make an offer.”
Don’t make the mistake of waiting until you find the perfect home before you get your financing in order. Often in highly competitive sellers markets you will need to make a competitive offer very quickly.
Working with a Buyers Specialist will solve this problem. They will be able to help you identify options for home loan financing.
Getting a pre-approval letter is a must so you don’t miss the “one”