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That
cost you money when buying a property.
#1 Failing to use the services of an experienced Real Estate Agent
Many times buyers avoid using the services of a Real Estate Agent 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.
When buying a property, 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 Real Estate
Agent, who is committed to using the experience gained through hundreds
of successful negotiations for your benefit.
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 property 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 property 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 Real Estate Agent 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
your's?
#3 Failing to have a Comparative Market Analysis prepared before
offering
Before you make an offer to purchase that special property, 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 properties 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 Real Estate Agent 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 property inspected by a competent property
inspection company
Buying a property is a major purchase usually made after spending just
half an hour looking at the property. Isn't it worth ensuring you will
not be surprised later with deficiencies costing thousands? Your Real
Estate Agent 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 Real Estate Agent can
thoroughly explain the agreement to you and help you to fulfill your
contractual obligations.
#7 Letting emotion blind reason
Buying a property 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 properties
Knowing how much you can comfortably afford before looking at real
estate for sale will ensure you are looking in the right price range and
prevent you from buying a property 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 Real Estate Agent can help you initiate this process and can
also recommend alternative sources of financing.
Being aware of these Big Time mistakes will ensure you receive best
value for your dollar when the time comes to buy your property!
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