1. 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.
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 yours?
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 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. Being aware of these Big Time
mistakes will help ensure you receive best
value for your dollar when the time comes to
buy your home!
