Thinking you can't afford it.
Today, buying the home of your dreams is easier than ever before. Many
people who thought that buying the home they wanted was simply out of
their reach are now enjoying a new lifestyle in their very own new
home. Buying a home is the smartest financial decision you will ever
make. In fact, most American and Canadian 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 more
flexible today than ever and tax allowances favor home ownership. Real
estate values have always risen steadily. Of course there are peaks
and valleys, but the long term the trend is a consistent increase.
This means that every month when you make a mortgage payment the
amount that you owe on the home goes down and the value typically
increases. This owe less-worth more situation is called equity
build-up and is the reason you can't afford not to buy. Even if you
have little money for a down payment or credit problems, chances are
that you can still buy that new home. It just comes down to knowing
the right strategies, and working with the right people. See below.
Deadly Mistake #2:
Not working with a buyer's agent
to represent you. Buying property is a complex and stressful task. In
fact, it is often the biggest single investment you will make in your
lifetime. At the same time, real estate transactions have become
increasingly complicated. New technology, laws, procedures and
competition from other buyers require buyer agents to perform at an
ever-increasing level of professionalism. For many homebuyers, the
process turns into a terrible, stressful ordeal. In addition, making
the wrong decisions can end up costing you thousands of dollars. It
does not have to be this way! Work with a buyer's agent who has a keen
understanding of the real estate business and who is on your side.
Buyer's agents have a fiduciary duty to you. That means they are loyal
to only you and are obligated to look out for your best interests.
Buyer's agents can help you find the best home, the best lender and
the best inspector. Best of all, in most cases, the buyer's agent is
paid out of the seller's commission, even though he/she works for you.
Trying to buy a home without an agent at all is, well... unthinkable.
Deadly Mistake #3:
Getting a cheap inspection.
Buying a home is probably the most expensive purchase you will ever
make. This is no time to shop for a cheap inspection. The cost of a
home inspection is very small relative to the home being inspected.
The additional cost of hiring a certified inspector is almost
insignificant. As a homebuyer, you have recently been crunching the
numbers, negotiating offers, adding up closing costs, shopping for
mortgages and trying to get the best deals. Do not stop now. Do not
let your real estate agent, other inspectors or anyone else talk you
into skimping here. Never accept an inspector recommended by the
listing or selling agent, you need a certified, qualified professional
inspector to look out for your interests. Certified inspectors do
more, they deserve more, and yes they generally charge a little more.
So do yourself a favor...and pay a little more for the quality
inspection you deserve.
