Deadly Mistake #1: Thinking you can't afford it.
Today, buying the home of your dreams is easier than ever
before. Many people who thought that buying the home they
wanted was simply out of their reach are now enjoying a new
lifestyle in their very own new home.
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.
Deadly Mistake #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.
Deadly Mistake #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 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.
NACHI front-ends its membership requirements. NACHI turns
down more than 1/2 the inspectors who want to join because
they can't fulfill the membership requirements.
NACHI certified inspectors perform the best inspections by
far. NACHI certified 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.
Copyright 2005 National Association of
Certified Home Inspectors
