“3”
Mistakes of buying a Home ...
Mistake No. 1 -
Thinking you can't afford it.
Buying a home is the smartest financial
decision you will ever make. In fact, most
American and Canadian home owners would be
financially broke at retirement if it
weren't for one saving grace - the equity in
their home. Furthermore, mortgage rates are
more flexible today than ever and
tax allowances favor home ownership.
Real estate values have always risen
steadily. Of course there are peaks and
valleys, but the long term the trend is a
consistent increase. This means that every
month when you make a mortgage payment the
amount that you owe on the home goes down
and the value typically increases. This
owe less-worth more situation is called
equity build-up and is the reason you can't
afford not to buy.
Even if you have little money for a down
payment or credit problems, chances are that
you can still buy that new home. It just
comes down to knowing the right strategies,
and working with the right people. See
below.
Mistake No. 2
- Not hiring a buyer's agent to represent
you.
Buying property is a complex and stressful
task. In fact, it is often the biggest
single investment you will make in your
lifetime. At the same time, real estate
transactions have become increasingly
complicated. New technology, laws,
procedures and competition from other buyers
require buyer agents to perform at an
ever-increasing level of professionalism.
For many homebuyers, the process turns into
a terrible, stressful ordeal. In addition,
making the wrong decisions can end up
costing you thousands of dollars. It does
not have to be this way!
Work with a buyer's agent who has a keen
understanding of the real estate business
and who is on your side. Buyer's agents
have a fiduciary duty to you. That means
they are loyal to only you and are obligated
to look out for your best interests.
Buyer's agents can help you find the best
home, the best lender and the best
inspector. Best of all, in most cases, the
buyer's agent is paid out of the seller's
commission, even though he/she works for
you.
Trying to buy a home
without an agent at all is,
well... unthinkable.
Mistake No. 3
- Getting a cheap inspection.
Buying a home is probably the most expensive
purchase you will ever make. This is no
time to shop for a cheap inspection. The
cost of a home inspection is very small
relative to the home being inspected. The
additional cost of hiring a certified
NJ home inspector is almost insignificant. As a
homebuyer, you have recently been crunching
the numbers, negotiating offers, adding up
closing costs, shopping for mortgages and
trying to get the best deals. Do not stop
now. Do not let your real estate agent, a
patty-cake inspector or anyone else talk you
into skimping here.
Aggressive inspectors perform the best
inspections by far. Aggressive
licensed NJ home inspectors earn their fees many times over.
They do more, they deserve more, and yes
they generally charge a little more. Do
yourself a favor...and pay a little more for
the quality inspection you deserve.
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