CABOR Shares 4 Errors Home Shoppers Should Avoid
Real estate professionals, members of the Cleveland Area Board of REALTORS® (CABOR), say they are seeing buyers make the same mistakes over and over again in a home purchase. Among some of the common errors they see:
Unrealistic time tables—With a regular sale, home buyers should prepare for a 45 to 60 day process. If it is a foreclosure property, they may encounter lien and title issues that could cause delays stretching that to 60 to 75 days, even up to 90 days. With short sales, that time frame will greatly depend on whether the lenders have already agreed to it and a preset price, but it could take anywhere from 45 days to even up to nine months.
Ignorance with financing—Home buyers should learn more about the mortgage process, learn the terminology, and know what questions to ask in shopping around for the best mortgage rate. For example, according to CABOR Chair Joanne Zettl, a home buyer should never tell a lender, “This is my first time, I need you to guide me through the process.”
Zettl says doing so can be like putting a sign on your forehead that says, “Charge me more.”
“Trash talking” when negotiating—If the home is painted pink and the buyer insists it needs to be repainted, he could risk jeopardizing negotiations. Instead, when making an offer, buyers should stress what they like about the home. A price reduction should be talked about in terms of what the home is worth to that buyer.
Getting in over their heads—Buyers are sometimes tempted to stretch their budget in order to get the house of their dreams, but they should not stretch themselves so thin that they miss out on having a reserve fund in case they need to make any unexpected repairs once they move in. In most home ownership situations, there are going to be some unforeseen circumstances. Make sure you have some funds.
Remember, when you are ready to buy or sell your home, the Cleveland Area Board of REALTORS® and its members are here to assist.