Three common mistakes homebuyers should avoid

Common mistake #1

Thinking you can't afford it.

Today, buying the home of your dreams is more affordable than ever. Many people who thought that buying the home they wanted was simply  out of their reach are now enjoying a home of their own.

The purchase of a home is the smartest financial decision you will ever make. In fact, most American home owners would be financially broke at retirement if it wasn't for one saving grace-the equity in their home. Furthermore, mortgage rates are readily available and there are a plethora of homes to choose from in the market today.

Real estate values have always risen steadily. Of course there have been ups and downs over the years but over the course of a lifetime  there is a consistent increase in the value of a home, which means that every time you make an installment payment on your home, the amount that you owe goes down and the value typically rises. This owe less, worth more condition is known as equity build-up and is the reason why you can't afford not to buy.

Even if you have a low down payment or credit problems chances are good that you will still qualify to purchase a new home. It just boils down to knowing the right strategies and working with the right people.


Common mistake #2

Not hiring a real estate agent to represent you.

Purchasing a new home is a stressful and complex endeavor. Often times it is the single largest investment a person makes during their lifetime. At the same time real estate transactions have become increasingly complicated. New technology, laws, measures and competition from other buyers require Real Estate agents to perform at an ever increasing level of professionalism. In addition, making the wrong decisions can end up costing the new homebuyer thousands of dollars.  It doesn't have to be this way!

Work with a Real Estate agent who truly understands the real estate business and is on your side. Real Estate agents have a fiduciary duty to you. That means they are loyal to only you and they are obligated to look out for your best interest. Real Estate agents can help you find the best house, the best lender and the best home inspector. Best of all, in most cases, the Real Estate agent is paid out of the seller's commission, even though he/she works for you.

Trying to purchase a home without an agent is unthinkable.


Common mistake #3

Hiring a cheap home inspector.

Buying a home is probably the most expensive purchase you will ever make. The hiring of a home inspector would not be the right time to try to save money. The cost of a home inspection is very small compared to the home that is being inspected. The added cost of hiring a certified is insignificant.  As an active homebuyer, you have been looking for the for the best house, the best Real Estate agent, the best neighborhood. Do not stop now. Do not let your  Real Estate agent or a cheap home inspector talk you into going with anything less than the best.

Certified home inspectors perform the best inspections by far. Certified inspectors earn their fees many times over. They do more, they deserve more and yes they generally charge a little more. Do yourself a favor and pay a little more for the quality inspection you deserve.