All home buyers commit some mistakes while buying a home. However, when the financial stakes are too high, making a wrong move can be costly.
Here are the five most common mistakes that buyers make.
You make a huge offer hoping that you can get the price lowered later
The real estate sector is recovering. In some neighborhoods in Dallas, Texas, homes now sell for more than their asking price. When more than one buyer is interested in the same property, a bidding war may ensue. In this case, some buyers may make too big an offer. They will then try to lower the price, but that strategy will not work in a strong seller’s market. If you ask for undue credits during escrow, the seller may back out of the deal and sell the property to another buyer who wants it. So make a genuine offer and don’t expect the seller to lower the price later.
You don’t ask for credits until the last moment
You have found a home and you have made an offer, but after inspecting the property, you discover that it requires costly repair work. You’re stuck and would have to ask for credits immediately. If you wait till the 11th hour to make unreasonable demands, the seller is unlikely to cave in.
You are looking for a deal
When you buy a big ticket item like a home, you will definitely want to save some money. While it is okay to look for the best possible ‘deal’, don’t pass up good opportunities when you discover them.
You decide to fly solo
Now that you can find plenty of information online, you will probably assume that you can buy a property without hiring a real estate agent. But this strategy almost always backfires.
An experienced agent knows the local real estate market better than anybody else. You can find listings online, but you need a good agent on your side to present your offer to the seller’s agent. Also, an agent knows the inside stories behind comparable sales. There is yet another reason to hire an agent. Some listing agents refuse to work with unrepresented buyers.
You don’t consider the resale potential of the property
While buying a home, you should also think like a prospective seller. You will probably have to sell this property after a few years. So make sure that you will have no difficulty selling it later.