:: Buyers :: 4 Common Mistakes to Avoid in Today's Market
1. Shopping For a Home Before Shopping For a Mortgage.
Knowing your purchasing power from the onset can save you hours of searching
for homes you cannot afford, or may allow you to afford a better home than you
anticipated.
2. Failure to be Represented by Your Own Buyer's Agent.
Many times, buyers meet a listing agent when they visit an open house and might
ask this agent to represent them in the purchase of the house. It is not hard
to imagine how this scenario might create a conflict of interest for the listing
agent. A far better alternative for buyers is to have their own agent representing
their best interest. A buyers' agent will help their clients construct a successful
offer that meets their needs as well as those of the seller. Additionally, once
an offer is accepted, the buyers' agent can work to ensure that their buyers'
concerns and questions are addressed and their needs are protected.
3. Failure to Review a Comparative Market Analysis (CMA) Before Completing the
Purchase Agreement.
Reviewing the recent sales prices of comparable homes and the asking prices of
similar homes currently for sale and in escrow, you will be better equipped to
ascertain the true market value of available homes. By carefully reviewing an
updated CMA and determining the number of potential buyers (if any) in competition
for the home, you stand a higher chance of presenting a successful offer without
overpaying for the property.
4. Failure to Include Reasonable Contingency Clauses in Your Purchase Offer.
In competitive bidding situations, some agents advise their clients not to include
any contingency clauses in their purchase offers. This well-meant advice is very
risky as it limits your ability to fully understand a home's defects and potential
issues before you own it. The more protective and prudent approach which we advise
is to offer short time frames of the removal of some contingencies. This still
places you in a strong position without giving up any of your rights.