Fsbo

Home Buyers

1. Purchasing a home too fast.
Perhaps it’s the excitement of purchasing the first time. Or maybe it’s a fear that the “perfect” home will be purchased by another borrower. Whatever the reason, many first time home buyers make the mistake of rushing through the home purchasing process. They tend to spend too little time searching for the right home. Often first time homebuyers end up dissatisfied with the home they’ve purchased.

2. Buying too much home.
Another mistake made by first time home buyers is purchasing a home that’s right at, or even a little beyond, their limits. Many times this leaves the new homeowner with little or no disposable income. What good is a large home if you are unable to furnish it? None at all. Purchasing a smaller home and leaving yourself some wiggle room is much better than eating up your monthly income with mortgage payment.

3. Holding out for the dream home.
First time home buyers might pass up several houses they like because they believe that there is a better house out there for them – one that is complete with everything they want and need.

In the meantime, houses that have most of the items they are looking for are being taken off the market by other buyers.

If a significant period of time passes, market prices could go up and the first time home buyer ends up paying more for a home than expected. Even worse, the buyer ends up so worn out from house shopping that he, or she, ends up settling.

4. Not getting mortgage pre-approval.
A pre-approval will do wonders for the first time home buyer’s shopping experience. Being pre-approved for a mortgage gives you an idea of what you will be able to pay for a home.

Some first time home buyers, not realizing the value, forgo pre-approval to get a head start on home shopping. What’s the worst that could happen? You could find a home you absolutely love and fail to obtain financing for it.

5. Not comparing mortgages.
Shopping around for a mortgage is just as important as shopping around for the home. Many first time home buyers do not realize that mortgages from different lenders have different costs and different terms.

There are so many cost factors of a mortgage that can vary from one lender to the next. It only makes sense to shop around for the best deal.

Home sellers

6.Putting the home on the market before it’s ready.
Most times this happens because the seller gets impatient or is a procrastinator and has pushed himself up against a moving deadline without getting the pre-sale work done. So it comes on the market with the horrible carpet (that gets replaced during the marketing of the home); or they are painting it while it goes on the market. Presentation is everything — so get the work done before marketing the property.

7.Over improving the home for the neighborhood.
This happens with additions, bump outs, and upgrades that make the home stick out from among its competitors so much that it’s an anomaly, instead of a nice addition to the community.

8.Getting emotionally involved in the sale of the home.
This is one of the biggest challenges home sellers face when putting their house on the market. Once you decide to sell your house, it’s no longer a home, but a commodity. It needs to be prepared as a commodity, marketed as a commodity, and priced as a commodity. It doesn’t matter what you “want,” only what the market can bear on pricing. People are going to come in to kick the tires, so to speak, and you can’t get emotional about how they may or may not appreciate the nuances of your home of seven years.

9.Trying to cover up problems, or not disclosing them.
Most states have a property disclosure/disclaimer form — use it wisely. Just because you disclaim doesn’t mean you cannot be sued later for the leaky basement, or dilapidated heating/air system that’s discovered 30 days after settlement.

10.Not getting your ducks lined up before trying to sell.
This would involve financing, reading the fine print on your current mortgage to ensure no pre-payment penalties, not listening to the particulars of your local market, etc. If your local market is dictating lower home prices, then lower it early, not later — it will cost you more. If the local market dictates selling your home first, then buying second, do it in that order, or vice versa.

This entry was posted on Tuesday, September 16th, 2008 at 5:00 am and is filed under FSBO. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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