Part II: The 12 Biggest Mistakes Even Smart Peninsula Home Buyers Make…

By Raymond Stoklosa · December 8th, 2007

Here are another few keep in mind as you look for your new home this weekend…

Mistake #4 — Bidding blind

Blind bidders ignore recent sales activity of competitive homes, and pay a steep price for their over-sight. Listing prices are not indicative of the real value of a home. The Seller’s Agent (e.g. Listing Company) is working to obtain the highest price for the seller- not the lowest price for the buyer.

Recommendation: Review a competitive market analysis

Homes are worth what people are willing to pay for them. Actual selling prices of similar homes recently sold are the most reliable indicator of a home’s true value. A competitive market analysis shows the recent sales prices of competitive properties in the area. Your Exclusive Buyer’s Agent can provide and interpret the analysis for you. Get the facts and don’t bid blindly. Blind bidding leads to over-paying, and relying on gossip can be costly.

Mistake #5 — Not knowing your total financial obligation

The average person spends more time determining the cost of a new dishwasher than the actual costs associated with buying a new home. Not knowing how many dollars you’ll need to close the transaction can be an expensive mistake.

Recommendation: Obtain an estimate of your closing costs

No one likes financial surprises. Know your total cost to purchase before making an offer. Your Buyer’s Agent will prepare a realistic estimate of all your closing costs and expenses so you can prepare for these expenditures. A thorough cost estimate will include all real estate related expenses (e.g. commissions, inspection fees, home warranty premium), lender charges, title insurance premiums, escrow fees, homeowner’s insurance and pro-rations.

Mistake #6 — Skipping a professional home inspection

Why inspect? Because no home is perfect. Even repeat buyers can overlook serious flaws and deficiencies. Don’t be blind-sided by serious defects that may not be readily observable by the inexperienced eye.

Recommendation: Thoroughly inspect the property

There are no perfect properties. A professional inspection will help you understand the home’s physical condition. A professional home inspector will identify the red flags, defects and malfunctions visible in the home. Knowing the flaws, short-comings and potential repairs before you buy helps you get your money’s worth.

If you have enjoyed LivingWellinSanMateo – belmont, san carlos, san mateo real estate, please subscribe to our RSS feed.

Be Sociable, Share!