#1
Failing to use the services of an experienced
REALTOR. Many times buyers avoid using the services
of a REALTOR under the mistaken belief that it costs them
money - or that they will be able to negotiate a better deal
directly with the seller or seller's agent. This can be an
expensive mistake.
When buying a home, if you are negotiating
directly with the seller or seller's agent, you may not be
taking advantage of the best deal available in the marketplace
today! You can have your own REALTOR, a Buyer Broker or Purchaser's
Agent, who is committed to using the experience gained through
hundreds of successful negotiations for your benefit
- at no charge to you! Your agent can be paid from the same
commission that the seller's agent is paid from - by the seller.
Real Estate is a unique business, where an agent
with one day's experience and no sales gets paid the same
as an agent with several years experience and hundreds of
successful sales. An experienced agent can help you avoid
the other costly mistakes outlined here, and make your home
buying experience an enjoyable, stress-free one!
#2
Not knowing who the agent is really working
for. It is important for buyers to know and understand
for whom the agent helping with the house hunting is actually
working. The agent may be working as a sub agent - representing
the seller's best interests during negotiations - or as your
agent representing your best interests during negotiations.
If you are not sure who your agent is working for - ask for
clarification. Your REALTOR must fully explain agency. When
negotiations commence, wouldn't you want to know whether information
you divulge will be used for the seller's benefit - or your's?
#3
Failing to have a Comparative Market Analysis
prepared before offering. Before you make an
offer to purchase that special home, you must have a good
idea what the market value is to ensure you do not overpay.
Your agent can prepare a Comparative Market Analysis showing
what similar homes have recently sold for, and the difference
between the asking and selling prices. This is the same type
of report the seller receives when deciding on an asking price.
Wouldn't you like to have access to the same information as
the seller?
#4
Failing to recognize different negotiating
styles and strategies. Many buyers think that
the way to achieve a fair purchase price is by offering low.
This is the strategy of the buyer who is not in possession
of all the facts essential to negotiating the best possible
deal. Many times that type of strategy will polarize negotiations
and lead to inflexibility on part of the seller - or worse
yet - failed negotiations!
If you have chosen your REALTOR wisely, the
most effective strategies for this particular situation will
be revealed to you. Remember, in the real estate business,
an agent with many successfully closed transactions usually
costs the same as someone who is inexperienced. That experience
could mean a better deal at the negotiating table with a minimum
amount of hassles.
#5
Failing to have the home inspected by a
competent home inspection company. Buying a home
is a major purchase usually made after spending just half
an hour looking at the home. Isn't it worth ensuring you will
not be surprised later with deficiencies costing thousands?
Your REALTOR
can recommend several reputable companies for you to choose
from, and will ensure the appropriate clause is inserted in
the offer.
#6
Not knowing and understanding your rights
and obligations set out in the Offer To Purchase.
It is important to understand completely the terms of the
Offer to Purchase. Wrong assumptions, poorly written or missing
clauses, and not understanding how the clauses affect the
purchase, can lead to increased costs or a void contract.
An experienced
REALTOR can thoroughly explain the agreement to you and
help you to fulfill your contractual obligations.
#7
Letting emotion blind reason.
Buying a home is an exciting time and is usually an emotional
decision. It is important that those emotions be validated
by facts and reason. An experienced agent will help to remove
the emotion from the negotiating process and provide you with
the information you need to make the right decisions.
#8
Failing to take the steps to be financially
pre-qualified, and having an interest rate guarantee before
looking at homes. Knowing how much you can comfortably
afford before looking at real
estate for sale will ensure you are looking in the right
price range and prevent you from buying a home that will strain
you financially and emotionally. Having an interest rate guarantee
will protect you in times of fluctuating rates and ensure
that your initial projected payments do not suddenly escalate,
resulting in extra interest charges. An experienced REALTOR
can help you initiate this process and can also recommend
alternative sources of financing.
