Many home buyers are very diligent about scouring the internet for information when they are selecting homes to consider. BUT (and it’s a big but) (I love saying that) many people fall in love with the home and rush to purchase without checking out 6 important factors that can cause costly buyer mistakes.Let’s make sure you know about these common buyer mistakes, so you can make sure they don’t happen to you!
1. Be Sure To Get A CMA Before You Make Your Offer
CMAs – Comparable Market Analysis is critical to knowing how much to offer. Just because you’ve look at similar homes doesn’t mean you know the home’s value. Remember that asking prices are always higher than closed prices. Zillow admits their Zestimates are often wrong by as much as 17% on average. Don’t make this common buyer mistake…get a formal market analysis so you are sure what the market value is.
2. Focusing on the wrong expenses
Buyers often make a buyers mistake by focusing intently on the mortgage payment and closing costs and often they forget to look down the line at additional expenses that are sure to come up. Of course, the closing costs and mortgage payments are important but make sure when looking at your budget you’ve taken into account the possible landscaping costs, utilities or other additional fees that will inevitably be built into owning this particular home. It’s perfectly acceptable to ask the seller for an expense list just so you can plan accordingly.
3. Restrictions, Community Health & Other Buyer Mistakes
More often than you might think buyers finalize their purchase before they’ve actually researched the type of restrictions they’ll have to work with. Sometimes you might find that you can’t do that add on because of zoning laws, or maybe you didn’t realize you’d have to park down the street! Even a fence may not be allowed by the association rules or zoning.
Check out the financial health of the community. Ask to see budgets and reserves of the home owner association. Avoid the common buyer mistakes of accepting the word of the Realtor without getting and understanding the reports.
4. Previous work was up to par
Buyers can so often get wrapped up in the excitement of the “perfect home” that they neglect to look into the previous construction or renovations that took place. Did the previous home owner get all the permits and plans required to finish that basement or did they pay cash under the table to someone who may or may not have built it to building codes? This is especially true for homes that have been “flipped” by people who are not experts in construction.
5. Watch Out For Price Killers
There are several things that can kill the price of your new home and make it very difficult to sell. It’s a common one of the buyers mistakes to watch out for. For example, is the builder stall building homes? If they are , and you need to sell, you will be competing with someone who can lower the price far lower than you can and that kills prices. Check out how many homes are short sales or bank foreclosures as distressed sales lead to lower prices.
6. Have you studied the neighborhood?
Make sure you look at the crime rates, schools in the area, commute times, etc. These might sound pretty straightforward to you but again, you’d be surprised by the type of information that gets overlooked because of excitement over the home itself. Discuss these things with your agent as well as any other type of info you should be looking for to make the best possible decision you can. This home is a very important investment and you need to make sure you’re making a well-informed decision.
If you would like to be sure you aren’t making these buyer mistakes or others, call the local specialist Tony Delisi at RE?MAX Unlimited Northwest 847-471-7177.
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