The 10 Mistakes Buyers Make When Purchasing a Home

Purchasing a home is one of the biggest financial decisions you will make. It is very important to be informed before and stay informed during the process—and make sure you have a good REALTOR® at your side every step of the way.

Here is a list of the 10 most commonly made mistakes buyers make when purchasing a home (as documented by Brian Buffini)

1. Making an offer on a home without being prequalified. Pre-qualification will make your life easier—so take the time to speak with a lender. The lender’s specific questions in regard to income, debt, etc., will help you determine the price range you can afford.

2. Not having a home inspection. Trying to save money today can end up costing you tomorrow. A qualified home inspector will detect issues that many buyers might overlook.

3. Limiting your search to open houses, ads or the Internet. Many homes listed in magazines or on the Internet have already been sold. Your best course of action is to contact a REALTOR®. They have up-to-date information that is unavailable to the general public and are the best resource to help you find the home you want.

4. Choosing a REALTOR® who is not committed to forming a strong business relationship with you. Making a connection with the right REALTOR® is crucial. Choose a professional who is dedicated to serving your needs—before, during and after the sale.

5. Thinking there is only one perfect house out there. Buying a home is a process of elimination, not selection. New properties arrive on the market daily, so be open to all possibilities. Ask your REALTOR® for a comparative market analysis, which compares similar homes that have recently sold, or are still for sale.

6. Not considering long-term needs. It is important to think ahead. Will the home suit your needs 3-5 years from now?

7. Not examining insurance issues. Purchase adequate insurance. Advice from an insurance agent can provide you with answers to any concerns you may have.

8. Not buying a home protection plan. This is essentially a mini insurance policy that usually covers basic repairs you may encounter and can be purchased for a nominal fee. As an item of value, I provide my clients a Home Warranty from Super Home Warranty company ($459 value)

9. Not knowing total costs involved. Early in the buying process, ask your REALTOR® or lender for an estimate of closing costs. Title company and attorney fees should be considered. Pre-pay responsibilities such as Homeowner Association fees and insurance must also be taken into account. Remember to examine your settlement statement prior to closing.

10. Not following through on due diligence. Buyers should make a list of any concerns they have relating to issues such as crime rates, schools, power lines, neighbors, environmental conditions, etc. Ask the important questions before you make an offer on a home. Be diligent so that you can have confidence in your purchase.

Bonus Tip: Being Unrepresented With New Construction. New build salespeople are protecting the interest of their builder, your REALTOR® is protecting your interest, with negotiations, recommended inspections, etc.