Home » Three Deadly Mistakes Home Buyers Should Avoid

Three Deadly Mistakes Home Buyers Should Avoid

#1 – Thinking you can’t afford it

Home buyer decisionsBuying a home is the smartest financial decision you will ever make. In fact, most homeowners would be financially broke at retirement if it wasn’t for one saving grace – the equity in their home. Furthermore, mortgage rates are more flexible today than ever and tax allowances favor home ownership.

Real estate values have always risen steadily. Of course there are peaks and valleys, but the long term the trend is a consistent increase. This means that every month when you make a mortgage payment the amount that you owe on the home goes down and the value typically increases. This equity build-up is the reason you can’t afford not to buy.

#2 – Not hiring a buyer’s agent to represent you

Buying property is a complex and stressful task. In fact, it is often the biggest single investment you will make in your lifetime. At the same time, real estate transactions have become increasingly complicated. New technology, laws, procedures and competition from other buyers require buyer agents to perform at an ever-increasing level of professionalism. For many homebuyers, the process turns into a terrible, stressful ordeal. In addition, making the wrong decisions can end up costing you thousands of dollars. It does not have to be this way!

Work with a buyer’s agent who has a keen understanding of the real estate business and who is on your side. Buyer’s agents have a fiduciary duty to you. That means they are loyal to only you and are obligated to look out for your best interests. Buyer’s agents can help you find the best home, the best lender and the best inspector. Best of all, in most cases, the buyer’s agent is paid out of the seller’s commission, even though he/she works for you. Trying to buy a home without an agent at all is, well . . . unthinkable.

# 3 – Getting a cheap inspection

Buying a home is probably the most expensive purchase you will ever make. This is no time to shop for a cheap inspection. The cost of a home inspection is very small relative to the home being inspected. The additional cost of hiring a certified inspector is almost insignificant.

As a homebuyer, you have recently been crunching the numbers, negotiating offers, adding up closing costs, shopping for mortgages and trying to get the best deals. Do not stop now. Do not let your real estate agent, a patty-cake inspector or anyone else talk you into skimping here. Certified inspectors perform the best inspections by far and earn their fees many times over. They do more, they deserve more, and yes they generally charge a little more. Do yourself a favor . . . and pay a little more for the quality inspection you deserve.