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