Homebuyer Beware of these 6 Buyer Traps
Buying a house among other things is a major investment. It can be a very expensive process, if you make the wrong decisions during the course of your search and purchase. There are some very common mistakes that many homebuyers will make when purchasing. There are nine traps that I believe can be easily prevented with the correct preparation.
Bidding Blind – Is the price you’re offering for the house the correct price or should you increase/decrease the offer price. The seller’s asking price can very much be disproportionate to the market. You can get recently sold comparable data from your realtor to make an informed decision.
Buying the Wrong Home – Many homebuyers get swept away by emotions and don’t go with the practical choice. The simple question of what are you looking for in a home, can truly be more complex than it seems. I can’t tell you how many times I’ve conducted an intake with a potential client and they say they’re only looking for four walls; however, when we start looking all of that changes. Take the time to write down exactly what you’re looking for (within reason) in a home and don’t part ways with it.
Proper Title Search – This is maybe one of the most important factors, the title work. Get a reputable Title Company so they can check for any liens, easements or other issues that could attach to the deed. Also make sure you purchase title insurance.
Proper Home inspection – Most homeowners will disclose the mechanics and material defects with the home; but minor things to them can be major for you and can be left untold at times. Having an independent home inspector to come out and conduct a thorough inspection. Unless the property is as-is you most certainly should negotiate repairs. A helpful article about what home inspectors search during the inspection can be found here.
Preapproval – Not much to be said here, no one should be out looking at homes without a proper preapproval from a bank. It benefits the seller and the buyer. Buyers with a preapproval can determine how much home they can afford. You should definitely check out my blog that discusses applying for a mortgage loan.
Rushing the closing – It is an undisputed fact that once you’ve found the home of choice, got the contract accepted, inspection and appraisal done that you’re more than ready to move in. let the process take its course (within a reasonable timeframe). Go over your closing documents carefully. Make sure that your interest rates are correct and all fees are the exact amount promised to you beforehand. Effective October 3, 2015 the Consumer Financial Protection Bureau will enforce new rules that says homebuyers must receive their closing documents within 72 hours of closing and they also have 72 hours mailing time unless they were hand delivered. That’s almost a week time before you can close on your new home. A necessary evil is what it is being called. You can find more details about TRID here, or make sure that your Realtor, Title Company and Lender are compliant before signing and working with them.
Adams Morgan Homes for Sale and Real Estate Service. Sherman Hardy is your local Real Estate Expert for Washington, D.C., and surrounding areas. You now have free access to Washington, DC Ultimate Real Estate Search Engine! I'm ready to provide you with a custom home valuation if you're considering selling your home. Google or call me today and let’s discuss how I can help you. Sherman Hardy 301-659-5004