Buying a house is a pretty big deal. The lay of the land might have a number of pitfalls that a buyer will have to deal with later. Going in blindly without having someone as a backup can cause you to lose a lot of cash. The disappointment sits heavy due to the window of opportunity you have lost.
Many buyers rush forward in all the excitement, only to be frustrated when things don’t go according to their plan. The world of real estate is a very misunderstood place and people trying to buy a house on their own come to realize their mistakes only when they fall prey to the seller’s claims.
Following are five deadly mistakes that a buyer must avoid at all costs before approaching a seller:
1. Foregoing an Estate Agent
Property dealing through an estate agent is completely different than dealing with a listing agent. The listing agent is on the seller’s payroll, so there’s a possibility that he will try to up the sale. His loyalty is tied to the seller and therefore, he will look for ways to make a higher profit that will get him a higher commission. This is why it is important to hire a real estate agent who will deal with the listing agent on your behalf. The agent will tell you about all the loopholes and whether the property is worth buying or not.
2. Not Getting the Pre-Approval Letter
The pre-approval letter allows you to make an offer then and there, after you have decided on the house. This shows the seller that you are committed to the deal and will not back out. This piece of paper is the most effective trick to convince the seller to sell the house to you.
3. Thinking Short-Term
Just because you found a house that falls under you budget does not mean that you should buy it right away. Just like a real estate agent assists you in doing a thorough research on the house, you also need to think about your future plans before buying the house. Does the area have potential for development? Will the prices rise in the future? Are there adequate facilities nearby? These are just some of the questions that you should be asking your real estate agent.
4. Not Doing a Home Inspection
Home inspection is the most crucial part of the home buying process. You cannot take the listing agent’s words that the house is in perfect condition. Get a home inspection done immediately during the due period, so that you know what kinds of repairs you will be dealing with after you have made the purchase.
5. Forgetting About “Fair Market value”
The fair market value is the price that houses on the block are being sold at. A seller will probably price the house slightly lower than the fair market value or keep it the same. Trying to negotiate your way to a lower value will do nothing but make you lose the deal. This is one area best left to the realtor. They will tell you if the value is just or not.
A little precaution is required before buying anything. When it comes to buying a house, you need to be careful with the inspection and appraisal. Steve Bhalla is a real estate agent with immense knowledge about the real estate market. Visit his website now and get registered if you are looking to buy a property.