Buying a Home: The 5 Biggest Mistakes that a Home Buyer Makes

As a Professional Real Estate Inspector I get to see and hear the right and wrong things people do when buying a home. These 5 tips will help you choose the right Real Estate Agent the first time.

Mistake #1: Not using an agent at all or using the Listing Agent as your 'Agent'. Not smart at all. By law, the listing agent is required to keep the Sellers best interest at stake, not yours! Why would anyone enter into a relationship handicapped like this?

I'm not aware of any state that makes a Buyer pay for their Agent. The Buyers agent normally gets paid from a cut of the Listing fees or the commissions are split.

If you choose wisely, you can put a trained real estate professional on your side for free! A true Buyers agent can help you negotiate a contract, fly through the mountain of paperwork, help you find the right home and help you schedule the needed inspections and appointments necessary when you do find your dream home.

Mistake #2: Relying on the Home Inspector your Agent recommends: I'm still amazed at how many people will blindly take the advice and recommendation of their Agent, or of the Listing Agent, when choosing an Inspector.

The agents have a financial stake in seeing the deal go through. Why risk the conflict of interest by solely relying on their choice of Inspectors? With a little research you can find your own home inspector who will have your best interest at stake. Don't know where to start? The American Society of Home Inspectors (ASHI) has an easy to use search tool on their web site. You can choose by zip code or by state and city. You can find it here: http://www.ashi.org

Mistake #3: Putting up "Non-Refundable" earnest money. This is like giving the Sellers a check and saying, "Here, you keep this. Even if we don't buy your home, you can keep our money". That's just plain stupid. If your Agent recommends it, find another agent because they don't have your best interest at stake.

I've seen Sellers request up to a $20,000 non-refundable earnest money check. Luckily my Client had a good agent and she told the Listing Agent "That is the most ridiculous thing I've ever heard. We'll give you the standard $1000 refundable earnest check. Take it or find another Buyer." The Seller accepted rather quickly since her home had been sitting on the market for 5 months.

Mistake #4: Falling in love with the home: "Earth to love struck home Buyer, they're building more homes every day!" The one group of consumers I see getting taken advantage of the most are those that "fall in love" with a home.

They will accept any terms set by a Seller. They will buy the home and tell themselves "It just needs a little work, I can do that myself." Even though they have never picked up a hammer in their life. They let their "love" cloud their vision and Judgement and end up paying hefty 'stupid tax'.

Mistake #5: Buying more home than what they can afford. There is a rule of thumb that says you should not buy a home that cost you more per month that 20 to 25% of your take home pay. I rarely see anyone following that rule of thumb today.

What I do see is consumers buying homes that take a large part of their monthly income. This leaves little room in their finances for emergency's, furniture, vacations, investing, etc. With the relaxed lending requirements, people are buying way more home than what they can realistically afford. If you go down this road, chances are that you'll grow to hate this home. You should own a home, the home should not own you.

I'm not a real estate agent, broker or attorney, nor am I a financial consultant nor do I claim to be an expert in any of these fields. The above views are my own and have been obtained from experiences in the Home Inspection field. Always consult with your financial planner and/or Real Estate Agent before making any decisions.

Donald Lawson is a Professional Real Estate Inspector licensed in Oklahoma (454) and Texas (#5824) and currently owns V.I.P. Home Inspections in Houston Texas. V.I.P. Home Inspections is a multi-inspector firm that inspects both commercial and residential inspections. You can find out more by clicking on this link to his site: http://www.best2inspect.com

---

Do You Have the Correct Home Buyer Mindset to be Buying a Home?

By learning what you need to know and preparing how... Read More

Buying A Home ? What Is That Noise!?!

You've found the perfect home, closed escrow and just finished... Read More

Questions You Always Wanted To Ask A Master Builder But Never Had The Chance

Building a house (or lots of them) seems to be... Read More

Secrets of Making Money from Real Estate - Part 2

Leverage: With real estate, people and companies will lend you... Read More

Tax Deferred Exchanges of Investment and Business Real Estate

The Primary Residence taxation, the Residential Replacement Rollover, Sec. 1034... Read More

Cashing Out of Preforeclosures - Exit Strategies for Maximum Profit

One of the quickest ways to real estate profits is... Read More

Refinancing Your Home Loan? When Should You Refinance Your Home?

If you have a current mortgage and are unhappy with... Read More

Real Estate Investing in Rentals ? the $10 Million Real Estate Investing Mistake

Renting to tenants is no longer "where the money is"... Read More

Buying Property in Portugal

Portugal has long been a popular choice for people, particularly... Read More

What are the Elements in Real Estate?

Each element has a specific color associated with it. Because... Read More

10 Easy but Essential Steps for Home Selling Success

They say that the whole process of selling up, buying... Read More

Home Equity ? Don?t Spend It on Risky Investments

The housing market has exploded in the last five years,... Read More

Selling Property - Valuing Your Property

Selling property privately has many advantages over using an estate... Read More

Mancos Real Estate

Real estate: availability and costIn 2000, the median home value... Read More

Cheap Homes For Sale In Great Towns

Good Homes Under $50,000? My wife Ana and... Read More

New Housing Starts Do Not Guarantee Aftermarket Sales

We have been studying a trend of new home buyers... Read More

Estate Planning

Estate planning can enable you to control your property while... Read More

The Professional Investors Plan

The art of using high-leveraged activities.Here I would like to... Read More

Should You Sell Your Home Yourself?

Are you thinking about selling your home? Would you like... Read More

Investing In Real Estate Investors

With the never-ending changes in our Real Estate Markets real... Read More

The Secret to Maximum Real Estate Profits: Lighting

Lighting is the most important detail of interior Design Psychology... Read More

Real Estate Professional in the Palm of Your Hand

GETTING THE MOST FOR THE LEASE-TRACKING YOUR REAL ESTATEIf you... Read More

6 REASONS for Investing in Florida Real Estate Investment Property NOW

I invite you to take the next few minutes to... Read More

Product Review of Carelton Sheets No Money Down Course

Real estate continues to be a very important part of... Read More

Purchasing International Real Estate

Interested in investing somewhere other than your back yard?Management companies... Read More

Property Investing Secrets 6

Property Investing Secrets:What No One Ever Tells You-How Real Estate... Read More

Oh No! Something has Happened in Florida

The Florida housing market has attracted many foreigners to invest... Read More

Checklist for Buying a Home

I had a client who called saying that his bath... Read More

How to Show & Sell Your California Home

Seller's Showing Instructions1. When the agent arrives with the potential... Read More

Ten Big Mistakes That Will Lose That Property Sale

If you are serious about selling your home, you probably... Read More

How To Get Top Dollar For Your Home ? Fast

1. Time is money when selling your homeAfter you've made... Read More

How Much Should I Pay For This House?

We probably answer this question for someone a couple times... Read More

Wealth Building ? An Advantage of Home Ownership

As you grow older, the issue of wealth building comes... Read More