By: Louis & Carmela Kapeleris

Commentary - 7 Costly Mistakes to Avoid in Real Estate

Tags: 7 Costly Mistakes to Avoid in Real Estate

When your getting ready to Buy a Home, there are many things to think about, prepare for and organize. 
Here are 7 Costly Mistakes Home Buyers can Make when Purchasing a Home.
Costly Mistake #1- Not knowing what You can afford before making an Offer? 
The best way to avoid this is to go to a Bank or Mortgage Broker and get pre-approved for a mortgage. How much home you can afford depends on how stable your finances are: what types of properties you're considering, the financing options available to you and how good your credit is.  Usually pre-approvals are free. If thinking of making offers right away, being Pre-approved for a loan will certainly help you in a Bidding War to Win that Dream home.

Costly Mistake #2-  Choosing the wrong mortgage.
A bad mortgage can cost you thousands in taxes and interest. Shop for the best Terms and Conditions on a Mortgage versus Rate only. Check for the 3 P's -Penalities,Portability and Pre-payment Priviliges. Consult an accountant before Choosing the mortgage thats right for you.

Costly Mistake #3 - Not knowing who the Real Estate Agent Represents?
Unless an Agent is working as your Buyer Representative , then they represent the seller. Many people don't realize this. Next time get yourself your own agent to represent you. They are free and there to help you.

Costly Mistake #4 - Choosing the Wrong Realtor.
There are many Realtors who are wrong for you. For example, the part-time agent who sells an occasional house because they need a little pocket change ID.22426549 or the insurance salesman who believes he can handle two careers or perhaps your cousin George who really needs your business. 
Getting an experienced, competent agent with your best interests in mind generally costs the same as hiring someone who is inexperienced. Bringing that experience to bear on your transaction could mean a higher price at the negotiating table with minimum headaches.The person you select can make it a satisfying and profitable activity or a costly,terrible experience. Its your home, your money...ID.33452110 Make your selection wisely.

Costly Mistake #5  -Not finding Problems with the Home before Buying it.
You should always have a professional Home inspector look at the home before buying it, otherwise you could be looking at huge repair costs later on. Email us for our free guide called - Avoiding a Money Pit!

Costly Mistake #6 -  -Waiting Too Long to Buy.
Although exceptions do occur, buying Now nearly always proves wiser than buying Later. When weighing the pros and cons of Renting versus Buying, 
ID.38401115 it pays to look into a variety of Buying options even it you only plan to stay in the home a couple of years. Consider purchasing at bargain prices, buying a fixer upper where you can quickly create value, or buying a home that would make a good rental property investment.

Costly Mistake #7 - Not Knowing Your Rights and Obligations.
Real Estate law is extensive and complex.  A Purchase of Agreement & Sale is a legally binding contract. If improperly written, the contract can cause the sale to fall through or cost you thousands of dollars for repairs, inspections, taxes and remedies for items included or excluded in the offer. You must be certain of which repairs and closing costs you are responsible for. You and Your Realtor must be aware of any defects or conflicts and how to remedy them to avoid loosing money. 

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