9
Buyer Traps
And How to Avoid Them
Buyer Beware
• paying too much for the home they want, or
• losing their dream home to another buyer or,
• (worse) buying the wrong home for their needs.
A systemized approach to the homebuying process can help you steer clear of these common traps, allowing you to not only cut costs, but also secure the home that’s best for you.
This important report discusses the 9 most common and costly of these home- buyer traps, how to identify them, and what you can do to avoid them.
Find out if your agent offers a Buyer Profile System or “House-hunting Service,” which takes the guesswork out of finding just the right home that matches your needs. This type of program will crossmatch your criteria with ALL available homes on the market and supply you with printed information on an on-going basis. A program like this can help you to affordably, move into the home of your dreams.
9 Buyer Traps
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 your offer would be like bidding blind. Without this knowledge of mar- ket value, you could easily bid too much, or fail to make a competitive offer at all on an excellent value.
2. Buying the Wrong Home
What are you looking for in a home? A simple enough question, but the answer can be quite complex. More than one buyer has been swept up in the emotion and excitement of the buying process only to find themselves the owner of a home that is either too big or too small. Maybe they’re stuck with a longer than desired commute to work, or a dozen more fix-ups than they really want to deal with now that the excitement has died down. Take the time upfront to clearly define your wants and needs. Put it in writing and then use it as a yard stick with which to measure every home you look at.
3. Unclear Title
Make sure very early on in the negotiation that you will own your new home free and clear by having a title search completed. The last thing you want to discover when you’re in the back stretch of a transaction is that there are encumbrances on the property such as tax liens, undisclosed owners, easements, leases or the like.
4. Inaccurate Survey
As part of your offer to purchase, make sure you request an updated property survey which clearly marks your boundaries. If the survey is not current, you may find that there are structural changes that are not shown (e.g. additions to the house, a new swimming pool, a neighbor’s new fence which is extending a boundary line, etc.). Be very clear on these issues.
5. Undisclosed Fix-ups
Don’t expect every seller to own up to every physical detail that will need to be attended to. Both you and the seller are out to maximize your investment. Ensure that you conduct a thorough inspection of the home early in the process. Consider hiring an independent inspector to objectively view the home inside and out, and make the final contract contingent upon this inspector’s
report. This inspector should be able to give you a report of any item that needs to be fixed with associated, approximate cost.
6. Not Getting Mortgage Preapproval
Preapproval is fast, easy and free. When you have a preapproved 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.
7. Contract Misses
If a seller fails to comply to the letter of 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 for an escrow fund to cover items that the seller fails to follow through on. Prepare a list of agreed issues,
walk through them, and check them off one by one.
8. 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 for this or that sneaking through after the “sub”-total – fees such as loan disbursement charges, underwriting fees etc. Understand these in advance by having your lender project total charges for you in writing.
9. Rushing the Closing
Take your time during this critical part of the process, and insist on seeing all paperwork the day before you sign. Make sure this documentation perfectly reflects your understanding of the transaction, and that nothing has been added or subtracted. Is the interest rate right? Is everything covered? If you rush this process on the day of closing, you may run into a last minute snag that you can’t fix without compromising the terms of the deal, the financing, or even the sale itself.
Ready to Find Your Dream Home?
We will guide you through the process and walk you through every step of the way. We will send you the available options as soon as they are published, schedule showings, and use our years of experience to get you to the closing table as soon as you find the home of your dreams.
Need to get pre-approved? ask us for details
Schedule a call with an Onalim Agent
Testimonials
What clients say about us
If you have experienced the inefficiencies of the "Institutionalized" Property Management Companies that view your community as only a revenue stream, it's time to learn about the services provided by The Onalim Team, a Boutique Property Management Firm.
Joe C.
I had the pleasure of hiring and working with Onalim for about a year! I couldn’t be happier with this group of guys. Alex is super knowledgeable and always knew the answer to my questions. He was always on the ball and one step ahead of the game! Everyone working with Onalim would answer my messages immediately! I couldn’t have been happier. I highly recommend them for all property management needs!
Erin B.
When I have had questions or problem, I was treated with quick response and clarity. Mr. Milano is approachable and he gives our condo options to what ever we have going on. I recommend him highly.
Ginger L.BUY, SELL & INVEST WITH US
We are Focused to deliver results
Onalim works with buyers, sellers, investors, and distressed homeowners. From their background and experience in Management, they’ve developed relationships with reputable vendors in any trade.
Onalim Property Management is a very personable quality company. The whole staff make themselves available to all concerns our residents have. They are very good about getting bids to help our finances stay at a healthy level. I highly recommend this team to you!
Terry G. Client