COUNTDOWN: Top 7 Ways Buyers Lose
By Emilio DiSpirito - Realtor/Team Leader DiSpirito Team with HomeSmart Professionals
Radio Show Host - "The Round Table Real Estate Simplified" Produced by Real Estate Radio Network and aired on iHeartradio "WHJJ" and Newsradio 920 each Sunday at 10 am.
MISTAKE #7! Waiving Home Inspections!
Home inspections are one of the most important parts of the process!! You need to make sure that the home does not fall apart, that the furnace does not die during the winter, plumbing doesn't leak and that your home is not infested with termites or carpenter ants to say the least! In the event there are major items in the home that need repair or service, you can ask for the seller to replace, fix or provide you with a credit that can save you thousands and a few gray hairs now and down the road! A good home inspector costs between $350 and $500. For our brave active military members and veterans, don't be afraid to ask inspector for a miltary discount! Make sure you ask your inspector if they cover septic, pest, radon, lead and well inspections. Many times they do not cover them all. You can ask them who they recommend. For Rhode Island home inspections, Mike Auger, owner of Patriot Home Inspections is very reasonable and has provided my clients with the best service.
MISTAKE #6! Buying A Home With A CESS POOL & NO SELLER CONCESSIONS!
Starting in January 1 of 2016, any home with a cess pool (roughly 25,000 in RI!) will be required to connect to sewer where available or to install a septic system upon transfer of property. When transferring property to immediate family you are exempt. However most sales are not to immediate family. If you are a buyer and the home you want has a cess pool, you will want to either ask seller to replace or to provide you with a credit. Have your agent ask the listing agent to get a quote for the system that specific property location calls for (high water table = higher prices $13,500 to $35,000 is what I have seen!). In the event you really really want the house and seller will not replace or will not agree on a credit, ask your real estate professional if that specific Rhode Island town is offering a "Waste water Assessment" to buyers. You can obtain a low interest loan from the local governments of 14 towns in Rhode Island to spread payments over time and make the install affordable. This information is always changing, so ask your Realtor for updated advice.
MISTAKE #5! Making Large Purchases When Buying A Home!
Furniture & Cars are the two biggest culprits when it comes to this category!! Mortgage companies give you financing depending on many requirements. One of those requirements is a certain "dept to income" ratio, aka DTI! Adding a monthly payment as low as $50 could absolutely disqualify you from affording the home of your dreams!!! Nothing worse than receiving a mortgage denial letter and having to wait several months or even years to buy... Not something I would suggest with historically low rates and reasonable home prices!
MISTAKE #4! Acting Too Fast - Waiting Too Long!
Buying the first home you see is not always the best idea! Shop around online for a while, have your agent educate you on location, home prices and what exactly you can get for your budget before diving in!! You may notice a home up the road that's been on the market with a bit of a bigger yard on that dead end with granite and stainless kitchen you have wanted in the same price range! On the other hand, waiting too long to make a move will leave you with missed opportunities! Homes that are priced right and that are appealing are selling extremely fast. Sometimes before listed or resulting in bid wars where sellers win and buyer pay more to play!
MISTAKE #3! Asking For Things After The "Hand Shake"!
Nothing can hurt a deal more than asking for additional items or concessions after a deal has been made. There are only two times in a transaction after contract has been signed where it is ok to do this and it's after home inspections if something needs to be repaired or replaced and if a home does not appraise it's ok to ask for seller to match appraised value.
MISTAKE #2! Choosing Your Lender Based On The Fact They House Your Checking Account!
More times than none, buyers will go to their personal banker who takes care of their checking & savings accounts to write their loan. Don't get me wrong because there are certain situations where banks can hep buyers with "portfolio" and certain "high risk" mortgages that others will not and there are a select few banks that have done really well by buyers in my estimation (while others told me "complaint department is closed"... or "good luck with that!"... and my favorite - "We have clear to close and the home appraised!..... (1 day later)..Banker says "I never said that!"). Me personally, I'd rather work directly with someone who only does mortgages. Not to mention, how well do you think it goes over when you find the home of your dreams on Tuesday at 5:00 pm and ask your bank for a pre approval letter to only hear the options menu and hours of operation? Working with a mortgage broker who works with multiple banks can really dig down deep to find you a great deal. More importantly mortgages ARE their business and the best brokers are available nights and weekends! My clients have strongly recommended Daniel Giroux with A Plus Mortgage.
MISTAKE #1! Investing Without Professional Education!
The BIGGEST mistake many buyers are found guilty of is buying a home without professional education!! Many buyers do not realize that they can hire a buyers agent for free! That's right!! Often times the listing agent will compensate the buyers agent upon a successful sale. Whether you decide to use a Designated Buyers Representative or you wish to use the Listing Agent to act as Transaction Coordinator or Neutral Dual Facilitator , you want to ensure you at least know all of the steps of the process to take! If this is your first home, we strongly suggest you use a Designated Client Representative who can not only negotiate a deal on your behalf but more importantly can walk you through the 180+ steps of the buying process to ensure a successful, safe & smooth transaction!
Tune in every Sunday to "The Round Table - Real Estate Simplified" to get advice from the states top Real Estate Agents, Attorneys, Mortgage Brokers, Home Inspections, Contractors, Financial Planners, Accountants and many more! Information that is vital to a successful real estate transaction! iHeartradio "WHJJ" & Newsradio 920!
To consult with a full time & top producing Realtor in Rhode Island or for recommendations for agents anywhere in the United States & Territories, consult Real Estate Agent Emilio DiSpirito 401-359-2338.
To see how much your home is worth please visit www.MyDreamHomeNow.com/sell
To view homes for sale in Rhode Island please visit www.MyDreamHomeNow.com
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