Common Home Buying Mistakes

Making a low offer. Don't insult the seller by "low-balling" the offer. This only tends to create animosity and resentment from the seller. At this point many sellers refuse to negotiate at all. Place yourself in the seller's position. Would you accept your offer if you were the seller? The way to get the best deal is to offer the lowest price you think the seller will accept.

Looking at homes before you are ready to buy. Don't look at homes until you are ready to buy. If you are not in a position to make an offer today, don't look at homes today. Many buyer's feel they want to look around before they are ready to make the commitment. Upon doing so they find the home they always dreamed of but aren't in a position to buy yet. Most times, by the time they are ready, their dream home has been sold.

Not writing an offer on the first home you see. It is true you shouldn't "jump at the first home" just for the sake of jumping. It's also a common mistake for a buyer to find the perfect home early in the process and hesitate in making an offer because they want to look around. Many times by the time the buyer looks at more houses and decides the first one is right for him or her, that home has been sold. This can be a heartbreaking experience.

Testing the seller. Just because you have made an offer doesn't mean the seller isn't considering other offers. Many buyers have made a low offer, or one with poor terms just to "test the seller". During this time, another buyer makes an offer better than yours, but less than you would have offered and the seller accepted that offer.

Making or accepting a verbal offer. In most states, real estate contracts must be in writing. This pertains to initial offers as well as negotiated items and terms. Everything must be in writing.

Failing to read the Seller Disclosure Statement (SDS). Many states require the seller to disclose any material defects of a property. Examples of defects are plumbing problems, roof leaks etc. If you inspect a house and notice what appears to be a water stain on the ceiling yet nothing is noted in the SDS, question the seller. This disclosure is for your protection. Make sure you and YOUR AGENT READ THE SDS.

Looking at houses without getting Pre-Approved for a mortgage. Getting Pre-Approved makes it much easier to negotiate with a seller. A pre-qualification is not the same as a  Pre-Approval. Pre-qualification is done in the process of obtaining a Pre-Approval but is only the first step. Ask your lender or Realtor for more information.

Not hiring a buyer's agent to represent them. A Buyer's Agent owes their loyalty to the buyer and is obligated to look out for the Buyer's best interest. Some of the duties the agent will perform is to prepare a CMA for the Buyer, help to negotiate the best price and terms and gather as much information as possible to help the Buyer make an informed decision.

Not investigating the Neighborhood. Neighborhood reports are a great place to start. The best way is to actually tour the area. This tour should be a different times of the day and week. How will rush hour traffic affect the area? Is any future development planned? These questions should be addressed with your Realtor.

Improper use of  the Home Inspection Contingency. A home inspection is a great way to obtain an objective opinion of a house's condition. However, you must remember that this clause should be used to determine major deficiencies. It should not be used to "pick apart" a house. The Agreement of Sale allows you to set a dollar amount for repairs. If the total cost of recommended repairs exceeds this amount, the seller will either contribute toward those repairs of you may declare the Agreement void. Ask your agent to help you determine the best repair allowance.

Not reviewing documents in advance. The time to review the Agreement of Sale is long before you need to sign it. Reading the document in advance will allow you to analyze it without the "pressure" of needing immediate signatures. Anything not understood should be referred to your Realtor for explanations.

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