1 – Bidding Blind: What price should you offer when you bid on a home? Is the seller’s asking price too high or does it represent a great deal? If you fail to research the market in order to understand what comparable homes are selling for, making an offer would be like bidding blind. Without this knowledge of market value, you could easily bid too much or fail to make a competitive offer. Our LUX LIFE Buyer Specialists will research all the facts and figures so you can make the best decision as to what to pay for the property.
2 – Buying the Wrong Home: What are you looking for in a home? This is a simple enough question, but the answer can be quite complex. Buyers can get so caught up in the emotion and excitement of the buying process that they sometimes find they own a home that is too big, too small, or not quite right. Maybe they’re stuck with a longer-than-desired commute to work or more repairs than they really wanted to manage. Our LUX LIFE Buyer Specialists will take the time upfront to clearly define your requirements.
3 – Proper Terms in Your Offer: The purchase contract is a long and laborious document. Our Buyer Specialists will navigate you through the offer process and explain all the clauses to make sure you are protected and have every advantage.
4 – Undisclosed Repairs: Don’t expect the seller to make every last repair. Both you and the seller are trying to maximize your investment. Ensure that you conduct a thorough inspection of the home early in the process. Hire an independent inspector to objectively view the home inside and out, and then review this inspector’s report. This inspector should be able to give you a report of any item that needs to be fixed and the approximate costs. Unless you are buying a brand new house, the seller is not legally obligated to make any repairs. Major structural concerns can be fairly negotiated. Don’t let minor repairs scare you away from a good property.
5 – Not Getting Mortgage Pre-Approval: Pre-approval is fast, easy, and free. When you have a pre-approved mortgage, you can shop for your home with a greater sense of freedom and security, knowing that the money will be there when you find the home of your dreams. At LUX LIFE we can recommend several trustworthy mortgage sources.
6 – Contract Misses: If a seller fails to comply with the contract by neglecting to attend to some repair issues or changing the spirit of the agreement in some way, this could delay the final closing and settlement. Agree ahead of time on a dollar amount to cover any items that the seller agreed to fix and fails to attend to. Prepare a list of agreed-upon issues, go through them, and check them off one by one.
7 – Hidden Costs: Make sure you identify and uncover all costs (large and small) far enough ahead of time. When a transaction closes, you will sometimes find fees sneaking through after the subtotal – fees such as loan disbursement charges, underwriting fees, etc. Understand these in advance by having your lender and escrow company project total charges for you in writing.