Too often the emotional tug for a property, or the desire to buy, exceeds the desire to fully investigate many very important factors that will impact your quality of life.
When someone needs dental work, they make sure they find a skilled dentist who they have confidence in. When one needs an attorney, they seek one who has the proper expertise to truly represent their best interests.
However, when people decide to purchase real estate, especially first time buyers, they are too ofter duped into a false sense of security when they meet a “high volume” agent.
Many “top producers” care much more about their image and income, than they do their clients! This leads to all too common breach of fiduciary responsibility to protect their clients best interests, resulting in innocent purchasers getting stuck with not such great deals.
The good news is that there are also some really great, caring, humanistic agents who care deeply about their clients and make sure that they get the best possible property and terms for their budget.
I wanted to share a few first time buyer mistakes I found in Realtor Magazine that I thought were important to share.
Common first time buyer mistakes [courtesy of Realtor Magazine]:
5. They don’t think about resale before they buy. The average first-time buyer only stays in a home for four years.
Choosing where to buy a house or condo is a vitally important decision. Consulting with an expert who has experience and knowledge of local and regional communities can have a huge impact on ones success and outcome.
Once you’ve done your research on schools and community services as well as commuting options and you are ready to hone in on specific communities you want to engage with someone who has a broad array of knowledge in real estate. One who has knowledge relative to construction, heating, ventilation, landscaping, grading and many related fields, along with a strong network of attorneys and finance people.
The entire legal process of purchasing or selling any piece of real estate can be difficult & stressful or it can be exciting and enjoyable. Working with one who possesses the skills I’ve mentioned has an amazing impact on what one actually gets in or out of their investment. Zillow can be a powerful tool for reviewing homes, agents and more. Check out my Zillow profile and let me know if I can help you!
Everybody wants a great deal and there are hundreds of ads, TV shows and websites that offer “unbelievable” opportunities for a “small” fee! But you know what they say about deals that sound too good to be true! Each of the properties in the aforementioned categories are being offered at a discount for a reason…
Let’s look at some examples:
- Short Sales, which are sales that require a lender’s approval, due to the delinquency of mortgage payments, can take many months to either be accepted or denied by the lender. Therefore buyers must be very flexible on closing dates, and or be okay with not getting such a property and having to start the process again on another home.
- REO’s (Real Estate Owned) are properties that the bank has foreclosed on and they discount them and list them with a broker, generally because of the deferred maintenance and rough condition. When people lose a property to the bank, they usually are not happy and have not been putting time, energy, money or love into the property.
- Auctions are challenging properties, because quite often they are distressed – condition wise, occupied by unhappy owners or tenants, and most often cannot be viewed inside until after agreeing to the auction sale price and signing the papers related thereto. Such papers require no financing contingency, no home inspections and closing within 30 days of auction,
As you can see, these types of purchases are not generally easy or appropriate for anyone who is not very experienced in buying, rehabilitation, dealing with difficult tenants and can handle a significant amount of stress and risk. If you are interested in a property that you feel may fall into one of these categories feel free to reach out. I’d be happy to help you figure out if this is the right choice for you.
While some people know exactly which city or town they want to live in, many people, in this transient society are open to more that one option. People who move to a new area are often focused on their commute to a new job.
Even if you have been in the same job and plan on being there for several more years, choosing a living location is an important decision and one that you want to thing a bit more long-term about.
Here are some of what I believe to be the most important factors to consider when you are looking to buy a property:
- Job location, proximity and stability
- Lifestyle needs, such as recreation, shopping, transportation
- Schools, if you have or plan on having children in a public school system.
- Friends in the area.
- Community you will be living in.
Early on, I suggest you look closely at each of these items and decide how much of a trade-off you are willing to make for each line item. For instance, would you prefer to get more “house/condo” for your money by living a little further from a major city, but have to commute more? Or, would you prefer to live in a city and be comfortable with less space?
Once you’ve started to get a real feel for your preferences, then you can actually begin scouting out the areas you are considering to get a better feel for your future neighborhood and home!
Thinking about a specific location? Concerned with your current commute and looking to move? I’d love to hear from you. Feel free to comment on this post or reach out to me directly.
While all brokers and agents need to earn a living, the motivations of anyone’s broker can have a huge impact on the value that broker brings to the table. Many agents are motivated by greed and only see their “clients” as $’s. Often those agents are heavy closers and often do a high volume of sales.
Other, more humanistic agents see their clients as themselves, as someone they have a fiduciary responsibility to protect and take care of. Obviously, there is a huge range of agents in between on a continuum. This is important to know for those who haven’t yet chosen their agent.
It can mean thousands of dollars of difference. I have seen many transactions where, for the same amount of money, in the same town and even comparable location, 2 different properties with a huge difference in real value, sold for the same price! And this happens largely due to the greed of a pushy broker. So make sure you choose a quality agent who views their clients as fellow citizens, who want the best value and quality property for their budget!
Have any questions? Please comment on this post or reach out via email and I will be happy to answer them!
Also check out my site to see what else is currently on the market.
Contrary to popular belief, with Fall clearly in the air, it is a great time to buy! Many people think that when daylight gets shorter and the leaves start falling that it isn’t a particularly good time to buy a property.
However, the fact that only really serious sellers have their homes on the market, and that there are few competing buyers checking out those houses really can be advantageous to buyers. Heating systems, insulation, energy efficient windows and all components of properties show their true functionality.
Landscaping can look a little drab, but you can always tell the difference between well maintained grounds and those that are in rough shape. So if you are considering investing in real estate I suggest looking now, when there are fewer competing buyers. Interest rates are still at historical lows and only really motivated sellers are on the market at this time of year.
Have questions about a house you saw or anything else real estate related? Please comment on this post or reach out via email and I will be happy to answer them!
Also check out my site to see what else is currently on the market.