|
| |
3 DEADLY
MISTAKES
Every Homebuyer Should Avoid
Deadly Mistake #1: Thinking
you can't afford it.
Today, buying the home of your dreams is easier than ever before. Many people
who thought that buying the home they wanted was simply out of their reach are
now enjoying a new lifestyle in their very own new home.
Buying a home is the smartest financial decision you will ever make. In fact,
most American and Canadian home owners would be financially broke at retirement
if it weren'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 owe less-worth more situation is called equity
build-up and is the reason you can't afford not to buy.
Even if you have little money for a down payment or credit problems, chances are
that you can still buy that new home. It just comes down to knowing the right
strategies, and working with the right people. See below.
Deadly Mistake #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.
Deadly Mistake #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.
NACHI front-ends its membership requirements. NACHI turns down more than 1/2
the inspectors who want to join because they can't fulfill the membership
requirements.
NACHI certified inspectors perform the best inspections by far. NACHI certified
inspectors 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.
|
