|
Whether you’re planning to buy or sell a home in 2011;
watch out for these common mistakes
A property cloud your good judgment: Assuming the appraisal and the actual value are one in the same.
Yes, appraisals are meant to be objective estimates of value: Different appraisals can come up with different results. Sellers should have their agent perform a comparative market analysis to get a better idea of their home’s true worth before putting it on the market, while buyers should request a similar service from their agent.
Skipping loan preapproval.
This is a crucial step for buyers, and one that may seriously affect your chances of getting a good home quickly. Obtaining preapproval for a mortgage will give you a better idea of how much you can safely borrow,
Trying to time a purchase or sale: with when the real estate bubble is going to burst is nearly impossible.
Deflate and then inflate again with market fluctuations. Buyers and sellers should realize that real estate is always a long-term investment.
Schools, taxes, homeowner association and other quality-of-life-affecting aspects of home ownership.
Hiring the wrong real estate agent.
Hiring a friend or family member who is an agent. Remember also that an agent who suggests the highest listing price or has the lowest commission is not necessarily the best choice. If you remember – smart, empathetic, experienced and dedicated – you will usually be happy with your agent.
Not knowing the contract.
Since the contract is a legally binding document, not knowing what you’re signing can be a very big mistake. Review it carefully before signing, and make sure it contains everything it should, including who is paying for
What and any verbal commitments. Make sure your agent takes an active part in the construction and negotiation of the contract. This is one step that can cause you large amounts of time and heartache if done wrong.
Not doing a criminal search.
Agents in many areas of the U.S. are not obligated to tell buyers if there is a sex offender or other criminal residing in the neighborhood. Ask your agent to provide you with this information,
if possible, and also do your own research. Check with the local sheriff’s office to find out how to access sex offender and other criminal databases.
|