Mistake: Not knowing how much they can afford to pay for a house before they make an offer.
Prevented by: Get pre-qualified for a mortgage from a Lender, so you know in advance exactly how much you can afford.
Mistake: Not finding out in advance whom the real estate agent represents.
Prevented by: Asking your Realtor. Most people think their agent is working for them. But unless the agent is working as your buyer representative, he/she represents the seller.
Mistake: Not realizing that the wrong mortgage can cost thousands of dollars in unnecessary interest and taxes.
Prevented by: Consulting with a mortgage consultant, accountant, and/or financial planner before making a final decision on which mortgage to choose. CPAs can tell you the long-term effects on your income.
Mistake: Not discovering hidden defects before buying a home.
Prevented by: Hiring a professional to conduct a pre-purchase home inspection.
Mistake: Not knowing how debt can affect their ability to buy or refinance a home.
Prevented by: Asking your mortgage professional to help you review and repair your credit file in advance.
Mistake: Setting their asking price too high because of personal need or emotion rather than fair market value.
Prevented by: Consulting with a professional real estate agent. He/she can assist you in pricing your home correctly.
Mistake: Failing to “showcase” their home by highlighting the best features.
Prevented by: Thoroughly cleaning, repairing, and readying your home for showing before you put it on the market.
Mistake: Signing a listing contract with no way out.
Prevented by: Asking your real estate agent if you can cancel your listing agreement at any time, no questions asked, prior to signing the contract or agreement.
Mistake: Choosing an agent for the wrong reasons. (For example, listing a home with the agent who works for the most popular company.)
Prevented by: Selecting a listing agent with the best marketing plan and track record.
Mistake: Not knowing their legal rights and obligations.
Prevented by: Consulting a knowledgeable, trustworthy professional who understands the technical and legal aspects of a real estate transaction. Contracts are legally binding. Neglected details can wind up costing sellers thousands of dollars.