Avoid Common Homebuyer ERRORS . . .
Shopping for a new home anywhere can be an emotional experience. It’s much the same in Florida. It's similarly time-consuming and comes with a myriad of details requiring your attention.
Many homebuyers, however, get caught up in the excitement of buying a new home and tend to overlook some items. Their home-purchase has turned into an expensive process.
Errors generally fall into three areas:
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Paying too much
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Losing a dream home to another buyer
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Buying the wrong home
When you have a systematic plan, you’ll be sure to avoid these costly errors. Here are some tips on making the most of your Florida home-purchase:
Bidding for a home with insufficient information
What price do you offer a seller? Is the seller’s asking price too high? Is it a deal? Without research on the local Florida market and comparable homes, you could lose thousands of dollars. Before you make that offer, be sure you have researched the local market. Your professional realtor/buyer-broker, can offer an unbiased opinion on the value of a home, based on current market conditions, condition of the home and neighborhood. Without knowledge of the market, your offer could be too much. Or worse, you could miss out on a great buying opportunity.
Buying a mis-matched home
What do you need and want in a South Florida home? Clearly identifying your needs and bringing an objective view to the home-buying process, places you in a better position. Sometimes, homebuyers buy homes that are too large or too small. Perhaps they didn’t consider the drive to work, to their preferred amenities, the distance to school, or perhaps home repair jobs waiting for completion. Plan ahead. Use your needs list as a guideline for every home you are shown.
Unclear title
Before signing closing documents, be sure the property is free of encumbrances. Your buyer-agent realtor will see that you are provided with a title search to ensure there are no liens, debts, undisclosed owners, leases, easements, or similar.
An outdated survey
Before your purchase is completed, an updated survey is essential. This report will indicate boundaries and structural changes (additions to the house, a new swimming pool, neighbor’s new fence which is extending beyond a boundary line, etc.).
Unexpected repairs
For $300 - $500 a professional home inspector will conduct a thorough inspection of the home. This way, you’ll have an idea of the likely cost of future repairs. Make the final contract subject to a favorable report.
Shopping without pre-approval
It only takes a few days to get home-financing pre-approval. When shopping for a home, this gives you more power and credibility. A seller is more likely to consider an offer from a financially-qualified buyer as a serious prospect.
Remember additional costs
Besides the funds for purchase of a home, you’ll need funds for items such as loan fees, insurance, legal fees, surveys, inspections, etc. See our Closing Costs Calculator for a closing costs estimate.
Rushing the closing
Before you sign, ensure that all documentation clearly reflects your understanding and conditions of the transaction. Has anything been forgotten? Don’t rush. You could lose money, financing or even the home-sale itself.
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