subject: Buying A Home - 5 Ways To Help You Not Buy Home Headaches [print this page] Buying A Home - 5 Ways To Help You Not Buy Home Headaches
As you know, buying a home is the biggest transaction in your life. Read this article and you won't make 5 common yet costly mistakes people make when they buy a house.
#1 Have A Real Estate Agent Represent You
Not having a real estate agent represent you doesn't save you money. The sellers real estate agent gets the same percentage. If you don't have an agent represent you, the seller's agent just doesn't split the commission. Make sure you at least try to negotiate it down. Besides, an agent can help you pay less.
Contracts written buy sellers or their representatives favor sellers. A buyer's agent will make sure there isn't too much of that going on.
2 Hire A Home Inspector
Unless you're a general contractor, an architect, or in a similar profession, always hire a home inspector to look at the the condo you're going to invest your money in. Even if you're considering buying a condo that's been gut-rehabbed. The value of your condo unit depends on the value of the common areas not only of the unit itself.
Don't use a home inspector that your agent recommends if the agent gets paid only if there's a closing. Agents have influence over the home inspectors they work with often. Some home inspectors will overlook problems. That goes doubly for using a home inspector recommended by the seller or the seller's agent|.
3 Use You Own Appraiser
Appraisers represent the interest of the party that hired them. The one the bank sends out will use a form specifically made for banks. Yes, they're supposed to give an impartial estimate of value. Most of them do. They still represent the bank. They can't tell you anything they find. And the value is of a given date. That means that if the price you're paying is too high or that the city's rezoning the other side of the street and that's going to reduce the value of your condo, they can't tell you. If you hired your own appraiser, you would know all kind of useful things way ahead of closing. Way before you invest too much money and emotion into the process.
Besides, appraisers can do more than just appraise a property. They can do all kind of research for you. They already do a lot of research (neighborhoods, property histories, zoning, market trends, etc.).
By the way, even if you pay for the appraisal, if the lender sent the appraiser, the appraiser works for the lender, can only talk to the lender (unless the lender specifically says they can talk to someone else).
4 Always Use An Attorney
This sounds so commonsensical that a lot of people would think I'm just wasting space when I say don't hire an attorney that has any interest in the other side or is recommended by the other side. Except I've heard of buyers' using the seller's attorney. With bad results.
5 Start Looking For A Mortgage Broker Before You Find The Perfect Condo
It takes time to get a good mortgage broker, so don't leave to the last minute. And get yourself pre-approved before you're ready to write your first offer. Not pre-qualified. Pre-approved. Being pre-approved gets your offers to be taken seriously. Having a good mortgage broker means you don't lose a good deal because the funds were not available on time. It also means you don't get the wrong loan.
Buying a home uses up a lot of your money. Since the most expensive thing you're ever going to buy is your home, it makes sense not to make mistakes. And you're less likely to make them if you're properly represented. So have all the right people on your team.
