Top mistakes made in buying a home


  • Determine your objectives, wants and needs, i.e., locations, budget, use of property, timing, etc.

  • Not understanding the roles and duties of real estate agents. Most buyers do not know whether the agent that is showing them real estate is negotiating the best price for the seller, or for the buyer.

  • Disclosing confidential information. Don't disclose confidential and material information about your needs and financial abilities to sellers and their agents.

  • Not understanding commissions. You need to understand commissions. They are paid out of the money you bring to the closing table.

  • Mortgage companies are not protecting your interests. Mortgage companies and appraisers protect and promote their own interests, not yours. Ask how much your loan will cost, per month. Discuss closing costs and fees. Your appraisal does not insure that you are getting a good deal.

  • Not strategizing before the deal. Design a strategy for negotiation with sellers and their agents before you make an offer. Know your spending limits. Avoid being swept away by pressure from agents or competition with other buyers.

  • Skipped Performing a Home Inspection. Before some markets shifted away from sellers markets, many homebuyers waived their right to a property inspection. Never, skip or waive the right to an inspection, the benefits far outweigh the costs and could save you numerous headaches and expenses later. Hire a professional not Uncle Albert.

  • Not attending property inspections. Attend your property inspections. A good inspector will show you not only what is wrong with a property, but also how to care for it during your ownership.

  • Not preparing finances first. Buy with your overall financial picture in mind. See a financial planner before buying.

  • Neglected to request rates of state, county or local transfer taxes paid by buyers at closing. Some buyers learn too late that they might need large amounts of extra money to pay transfer taxes in the state, county and city where they are purchasing property. Transfer taxes, which typically cannot be financed, can kill a transaction. Inquire when you start your search how much transfer taxes are and who pays them.

  • Were represented by the same agent representing the sellers. Thinking they might get a better deal or out of ignorance used the listing agent to represent them as well. Most states require written acceptance of this situation known as dual-agency by both parties under agent license laws. All buyers should be represented by an agent who has a fiduciary responsibility to them. Hire an Exclusive Buyers Agent.

  • Didn't Read Homeowners Association Documents. Getting rid of the family dog because you didn't know you were moving into a no-dog building is an example why every buyer should request and read home owner association declarations, rules and regulations, association meeting minutes and budgets. Ask if there are any special assessments (typically for capital improvements; new roofs, windows, elevators) or planned ones. Special assessments can run into the thousands.