wellington real estate

Common Home Buying Mistakes

Buying a home can be a stressful experience. Your emotions can run the gamut starting from the time you begin looking at a listing of homes for sale in Wellington right up to the time you are moving in and beyond. For most of us a home is the largest investment we will ever make in our lives. Often the emotions of purchasing something so expensive and personal can cloud our judgment. This holds true anywhere, whether you are buying a home in Wellington or are looking to buy a house anywhere across the country.

Most home buyers do little or no research before they invest their money. Doesn't it make sense to become as completely informed as possible? The right real estate agent can help you make good sound buying decisions based on your personal circumstances.

Here's a partial list of common mistakes made by people when buying a home in Wellington, Florida. Making one or more of them can be costly in money and/or time.

Proceeding Without a Plan

Without a plan to help you through the entire home buying process, you will be forced to make decisions on a whim, forget important steps, let the process control you, and most importantly, not be able to take advantage of the best buying opportunities. You'll survive buying a home in Wellington without a plan, but why take the chance of making serious mistakes?

Not Asking Enough Questions

From the time you start looking at listings of homes for sale right up to the time of closing you cannot ask enough questions. The old adage, "there are no stupid questions only stupid people who don't ask questions," applies in your dealings with real estate agents, lenders, title companies, and attorneys. The professional advice and expertise your Realtor and the others can give is not free but is money well spent. By asking questions you'll gain the general knowledge of the home buying process so as to make good decisions to make your purchase a success.

Selecting the "Perfect" Home

There is no such thing as the "perfect" home." Even if you build it yourself there will always be that one thing that could have been better. When looking at homes for sale in Wellington follow these simple steps and you should avoid being disappointed.

• Approach the home buying process objectively.
• The good houses for sale go quickly. The home you are looking at today may be the same home that someone looked at yesterday and is thinking about an offer.
• Avoid second guessing yourself.

After viewing each of the different houses for sale ask yourself the following important questions:

• What was right about this house that would make me want to buy it?
• What, if anything, would I want or need to change?
• What was wrong about this house that would make me not want to buy it?
• If the price was right, could I see myself owning this house? If yes, what would the"right" price be?

Failing to Having a Comparative Market Analysis Prepared Before Offering

Once you have found the home for you, now what? Before you make an offer to purchase it, you must have a good idea what the market value is to ensure you do not overpay. Your real estate agent can, and should, prepare a Comparative Market Analysis (CMA) that will show you if the home is overpriced or fairly priced for the market along with what similar homes have recently sold for, and the difference between the asking and selling prices. This is the same type of report the seller receives from his/her Realtor when deciding on an asking price. Shouldn't you have access to the same information?

Failing to Recognize Different Negotiating Styles and Strategies

Many buyers think that the way to achieve a fair purchase price is by offering low. This is the strategy of the buyer who is not in possession of all the facts essential to negotiating the best possible deal. Many times that type of strategy will stall negotiations and lead to inflexibility on part of the seller, or worse yet, stop future negotiations.

If you have chosen your real estate agent wisely, the most effective strategies for this particular situation will be revealed to you. Remember, in the real estate business, an agent with many successfully closed transactions usually costs the same as someone who is inexperienced. That experience could mean a better deal at the negotiating table with a minimum amount of hassles and save you considerable time and money.

Not Knowing and Understanding Your Rights and Obligations

It is important to understand completely the terms of the "Offer to Purchase." Wrong assumptions, poorly written or missing clauses, and not understanding how the clauses affect the purchase can lead to increased costs or a void contract. An experienced real estate agent can thoroughly explain the agreement to you and help you to fulfill your contractual obligations.

Buying On Emotion - Not Value

Your first priority should be on buying a home that will not become a financial nightmare. A home should be an investment and not a financial burden, especially for first-time buyers. If you borrow heavily from family members, sell assets, and live modestly just to take the largest mortgage you can qualify for, you may be guaranteeing financial difficulties in the future. Knowing how much you can comfortably afford will ensure you are looking in the right price range. Having an interest rate guarantee will protect you in times of fluctuating rates and ensure that your initial projected payments do not suddenly escalate, resulting in extra interest charges. An experienced Realtor can help you initiate this process and can also recommend alternative sources of financing. Home ownership should be " fun and rewarding, " not a controlling influence that turns you into a hostage.

Not Cleaning Up Bad Credit History

If you get excited about purchasing a home without first cleaning up any negative credit, you will kid yourself, waste your time and the time of everyone else involved in the process. Take the necessary steps to clean up your credit history.

Not Shopping For Competitive Interest Rates, Points, and Fees

Competition is the best friend of any home buyer. If you do not take advantage of the marketplace, you are bound to pay for it financially for the life of your mortgage; and emotionally when finding out later that you are paying much more for your home than your neighbor. Don't let closing costs get out of hand. Oftentimes you can unknowingly pay twice for fees, giving the loan officer and lender free money. Loan processing, document preparation, and underwriting fees are often already factored into the interest rate, points and application fee. You should also research other fees (credit check, appraisal, courier, etc.) thoroughly in order to request the lowest price. There are plenty of homes to buy and many loan options to choose. But once you've signed your mortgage contract, you may be stuck with an excessive rate and high points if you didn't take the time to aggressively shop for good terms.

Failing to Have the Home Inspected By a Competent Inspector

The decision to buy a home is usually made after spending just half an hour looking at it. Isn't it worth ensuring you will not be surprised later with deficiencies costing thousands? Your Realtor should be able to recommend several reputable companies for you to choose from, and will ensure the appropriate clause is inserted in the offer.

These above are just a few of the many mistakes that home buyers can make. I can show what other mistakes buyers can make and how I can help you avoid them when buying a home in Wellington and ensure you receive the best value for your dollar.

If I can be of service to you please do not hesitate to call me at one of the phone numbers listed below or feel free send me an email which I will respond to within a few hours, but often within minutes. Please be sure to include your contact information in your email.

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