Three Deadly MistakesDeadly Mistake #1: Thinking you can't afford it.
Today, buying the home of your dreams is easier than ever before. Many people who thought that buying the home they wanted
was simply out of their reach are now enjoying a new lifestyle in their very own new home.
Buying a home is the
smartest financial decision you will ever make. In fact, most American & Canadian home owners would be financially broke
at retirement if it wasn't for one saving grace - the equity in their home. Furthermore mortgage rates are more flexible
today than ever and tax allowances favor home ownership.
Real estate values have always risen steadily. Of course
there are peaks and valleys, but the long term the trend is a consistent increase. This means that every month when you make
a mortgage payment the amount that you owe on the home goes down and the value typically increases. This owe less-worth more
situation is called equity build-up and is the reason you can't afford not to buy.
Even if you have little
money for a down payment or credit problems, chances are that you can still buy that new home. It just comes down to knowing
the right strategies, and working with the right people. See below. Deadly Mistake #2: Not hiring a buyer's
agent to represent you.
Buying property is a complex and stressful task. In fact, it's often the biggest single
investment you will make in your lifetime. At the same time, real estate transactions have become increasingly complicated.
New technology, laws, procedures and competition from other buyers require buyer agents to perform at an ever-increasing level
of professionalism. For many homebuyers, the process turns into a terrible, stressful ordeal. In addition, making the wrong
decisions can end up costing you thousands of dollars.
It doesn’t have to be this way!
Work with a
buyer's agent who has a keen understanding of the real estate business and on your side. Buyer's agents have a fiduciary
duty to you. That means they are loyal to only you and are obligated to look out for your best interests. Buyer's agents
can help you find the best home, the best lender, and the best inspector. Best of all, in most cases, the buyer's agent
is paid out of the seller's commission, even though he/she works for you.
Trying to buy a home without an agent
at all is, well... unthinkable.
Deadly Mistake #3: Getting a cheap inspection.
Buying a home is probably
the most expensive purchase you'll ever make. This is no time to shop for a cheap inspection. The cost of a home inspection
is very small relative to the home being inspected. The additional cost of hiring a certified inspector is almost insignificant.
As a homebuyer, you've recently been crunching the numbers, negotiating offers, adding up closing costs, shopping for
mortgages, and trying to get the best deals. Don't stop now. Don't let your real estate agent, a patty-cake inspector,
or anyone else talk you into skimping here.
NACHI front-ends its membership requirements. NACHI turns down more
than 1/2 the inspectors who want to join because they can't fulfill the membership requirements.
inspectors perform the best inspections by far. NACHI certified inspectors earn their fees many times over. They do more,
they deserve more, and yes they generally charge a little more. Do yourself a favor...and pay a little more for the quality
inspection you deserve.
To find the best home inspector in your area visit www.InspectorSEEK.com
Copyright © 1999-2005 NACHIWhat Really Matters
Buying a home? The process can
be stressful. A home inspection is supposed to give you peace of mind, but often has the opposite effect. You
will be asked to absorb a lot of information in a short time. This often includes a written report, checklist, photographs,
environmental reports and what the inspector himself says during the inspection. All this combined with the seller's
disclosure and what you notice yourself makes the experience even more overwhelming. What should you do?
Most of your inspection will be maintenance recommendations, life expectancies and minor imperfections. These are nice to
know about. However, the issues that really matter will fall into four categories:
- Major defects.
An example of this would be a structural failure.
- Things that lead to major defects. A small roof-flashing
leak, for example.
- Things that may hinder your ability to finance, legally occupy or insure the home.
- Safety hazards, such as an exposed, live buss bar at the electric panel.
Anything in these categories
should be addressed. Often a serious problem can be corrected inexpensively to protect both life and property (especially
in categories 2 and 4).
Most sellers are honest and are often surprised to learn of defects uncovered during an
inspection. Realize that sellers are under no obligation to repair everything mentioned in the report. No home
is perfect. Keep things in perspective. Do not kill your deal over things that do not matter. It is inappropriate
to demand that a seller address deferred maintenance, conditions already listed on the seller's disclosure or nit-picky
Having your home inspected by a NACHI inspector before you
list is the recommendation found in the new edition of the book, Sell Your Home For More
by Nick Gromicko.
Eventually your buyers are going to conduct an inspection. You may as well know what they are going to find by getting
there first. The author points out that having an inspection performed ahead of time helps in many other ways:
allows you to see your home through the eyes of a critical third-party.
- It helps you to price your home
- It permits you to make repairs ahead of time so that ...
won't become negotiating stumbling blocks later.
- There is no delay in obtaining the Use and Occupancy
- You have the time to get reasonably priced contractors or make the repairs yourself, if qualified.
- It may encourage the buyer to waive the inspection contingency.
- It may alert you of
items of immediate personal concern, such as radon gas or active termite infestation.
- It may relieve
prospect's concerns and suspicions.
- It reduces your liability by adding professional supporting documentation
to your disclosure statement.
- Alerting you to immediate safety issues before agents and visitors tour
Copies of the inspection report along with receipts for any repairs should be made available to potential