It is highly recommended that all homebuyers, and especially First time home buyer, or inexperienced home buyers retain or seek professional help from a Real Estate Agent before proceeding; or the very lease be prepared by researching information and excersizing due diligence to avoid the common pitfalls and common mistakes.
Lack of research
Research includes basically asking questions about the house or the property. Your Real Estate Agent would do this for your and guide you every step of the way, otherwise, you could ask due dilligence questions including:
- Reasons for putting the property on sale
- Any problems about the house’s foundation that needs to be addressed.
- If the former owners have paid for the house and the methods of payment.
- If there are any problems in the area where the house and property is located like being near a flood zone, termite problems, etc.
- If there are any problems in town area.
Not considering the bidding and maintenance cost
Your research would also include the price. It is a common scenario when a buyer would tend to offer a higher price for a property that would fit their needs and demands. Before bidding for a property, search for similar houses in the area and how much were the sold in the last few months. It is better to look at houses and properties that were already sold than those houses still up for negotiations or sale. Buyers should bid consistently with the other houses’ prices.
Aside from the upfront price of the house or property, buyers would also forget to factor in the maintenance cost of the house. Without considering the maintenance cost, homebuyers would often find themselves buried in debts. Real-estate investors and home buyers should always keep the expenses in mind when buying property. Since the cost of improving the home would definitely have an impact how they would price their house. Having the home inspected could put a dent on your bank account, but never sacrifice it. Always get a good home inspector even if it means you would be spending more
Too much waiting
Another mistake that most homebuyers make is that they think can get a house on their own. There is nothing wrong with buying property and house without any professional help. It is just that it could be very stressful and would take much of your time. Real-estate agents have the resources, contacts, and tools that would be able to help make the search quicker. Additional, if you’re planning on investing in this industry then you would need the real-estate agent, and also a home inspector, a lawyer and an insurance representative.
