| "A systemized approach to the home | | | | |
| buying process can help you steer clear of | | | | As part of your offer to purchase, make sure |
| these common traps, allowing you to not only | | | | you request an updated property survey which |
| cut costs, but also secure the home | | | | clearly marks your boundaries. If the survey |
| that’s best for you." | | | | is not current, you may find that there are |
| | | | structural changes that are not shown (e.g. |
| No matter which way you look at it, buying a | | | | additions to the house, a new swimming pool, |
| home is a major investment. But for many | | | | a neighbor’s new fence which is |
| homebuyers, it can be an even more expensive | | | | extending a boundary line, etc.). Be very |
| process than it needs to be since they fall | | | | clear on these issues. |
| prey to at least a few of the many common and | | | | |
| costly mistakes which trap them into | | | | 5. Undisclosed Fix-ups |
| either:paying too much for the home they | | | | |
| want, orlosing their dream home to another | | | | Don’t expect every seller to own up to |
| buyer or, | | | | every physical detail that will need to be |
| | | | attended to. Both you and the seller are out |
| (worse) buying the wrong home for their | | | | to maximize your investment. Ensure that you |
| needs. | | | | conduct a thorough inspection of the home |
| | | | early in the process. Consider hiring an |
| A systemized approach to the home buying | | | | independent inspector to objectively view the |
| process can help you steer clear of these | | | | home inside and out, and make the final |
| common traps, allowing you to not only cut | | | | contract contingent upon this |
| costs, but also secure the home that’s | | | | inspector’s report. This inspector |
| best for you. | | | | should be able to give you a report of any |
| | | | item that needs to be fixed with associated, |
| 9 Buyer Traps | | | | approximate cost. |
| | | | |
| This important report discusses the 9 most | | | | 6. Not Getting Mortgage Pre-approval |
| common and costly homebuyer traps, how to | | | | |
| identify them, and what you can do to avoid | | | | Pre-approval is fast, easy and free. When you |
| them: | | | | have a pre-approved mortgage, you can shop |
| | | | for your home with a greater sense of freedom |
| 1. Bidding Blind | | | | and security, knowing that the money will be |
| | | | there when you find the home of your dreams. |
| What price should you offer when you bid on a | | | | |
| home? Is the seller’s asking price too | | | | 7. Contract Misses |
| high, or does it represent a great deal. If | | | | |
| you fail to research the market in order to | | | | If a seller fails to comply to the letter of |
| understand what comparable homes are selling | | | | the contract by neglecting to attend to some |
| for, making your offer would be like bidding | | | | repair issues, or changing the spirit of the |
| blind. Without this knowledge of market | | | | agreement in some way, this could delay the |
| value, you could easily bid too much, or fail | | | | final closing and settlement. Agree ahead of |
| to make a competitive offer at all on an | | | | time on a dollar amount for an escrow fund to |
| excellent value. | | | | cover items that the seller fails to follow |
| | | | through on. Prepare a list of agreed issues, |
| 2. Buying the Wrong Home | | | | walk through them, and check them off one by |
| | | | one. |
| What are you looking for in a home? A simple | | | | |
| enough question, but the answer can be quite | | | | 8. Hidden Costs |
| complex. More often than not, buyers have | | | | |
| been swept up in the emotion and excitement | | | | Make sure you identify and uncover all costs |
| of the buying process only to find themselves | | | | - large and small - far enough ahead of time. |
| the owner of a home that is either too big or | | | | When a transaction closes, you will sometimes |
| too small. Maybe they’re stuck with a | | | | find fees for this or that sneaking through |
| longer than desired commute to work, or a | | | | after the “sub”-total fees such |
| dozen more fix-ups than they really want to | | | | as loan disbursement charges, underwriting |
| deal with now that the excitement has died | | | | fees etc. Understand these in advance by |
| down. Take the time upfront to clearly define | | | | having your lender project total charges for |
| your wants and needs. Put it in writing and | | | | you in writing. |
| then use it as a yard stick with which to | | | | |
| measure every home you look at. | | | | 9. Rushing the Closing |
| | | | |
| 3. Unclear Title | | | | Take your time during this critical part of |
| | | | the process, and insist on seeing all |
| Make sure very early on in the negotiation | | | | paperwork the day before you sign. Make sure |
| that you will own your new home free and | | | | this documentation perfectly reflects your |
| clear by having a title search completed. The | | | | understanding of the transaction, and that |
| last thing you want to discover when | | | | nothing has been added or subtracted. Is the |
| you’re in the back stretch of a | | | | interest rate right? Is everything covered? |
| transaction is that there are encumbrances on | | | | If you rush this process on the day of |
| the property such as tax liens, undisclosed | | | | closing, you may run into a last minute snag |
| owners, easements, leases or the like. | | | | that you can’t fix without compromising |
| | | | the terms of the deal, the financing, or even |
| 4. Inaccurate Survey | | | | the sale itself. |