10 Mistakes

Working with more than one agent.
Real estate agents work on commission. Once you have selected a professional agent whom you trust, assure them that you will work only with them so that they can focus on finding you the right house. Your loyalty will be repaid by their loyalty to you.

Not signing a Buyer Broker contract with their agent.
You now can hire an agent to work exclusively for you. By placing your agent under a BUYER BROKERAGE contract, your agent will be obligated to be your advocate in negotiating the best price and terms for you in the purchase of your new home.

Not getting pre-approved by a lender before looking for a house.
By arranging your financing in advance of your house hunting, you will avoid the disappointment of looking at homes you can't afford. By getting pre-approved for your loan, you become in effect a cash buyer and can often save money on the purchase of your new home.  

Not buying now.
Once you are able to buy a home, it's best to act right away. Buyers often pay thousands of dollars more for the same house because they waited for the price to drop. Traditionally house values increase. In addition, by acting quickly, you begin to get the tax savings of home ownership and to enjoy the increase of your equity in the home.

Losing the house of their dreams because they had to think it over.
Ask any experienced real estate agent and they can tell you stories about people who find their dream home and lose it to another buyer. Doesn't it make sense that if you have fallen in love with a home others will also see the same value?

Not buying a Home Warranty.
No matter how well maintained the house you buy looks, things can go wrong after you move in. Protect your investment by purchasing a Home Warranty that will cover you against costly repairs to most of the homes operating systems and appliances. Ask your exclusive agent to request that the seller purchase the protection plan for you.

Not listening to their agent about the offer they should make.
Many buyers lose the home they fall in love with by thinking they can save money by making a low offer. Your agent will share with you the information about the current market value of the home. The seller also has this same information. By not making a realistic offer for the home, you may insult the seller and allow another buyer to get the home instead of you.

Not reading and understanding the terms of the offer being made.
You have the right to read and understand the Purchase Contract. While many buyers do not read the entire contract, always ask your agent to review the most important sections of the contract. Generally, anything that is printed in bold type, and any part of the contract that has been written in, is extremely important.

Not having a Home Inspection done during the inspection period.
No matter how nice the home looks to you, and no matter how completely the seller has disclosed any defects in the property, you have the right to make your offer subject to a Home Inspection by a competent professional inspector. Let your agent help you understand any inspection reports you receive.

Not getting written estimates of closing costs from your lender and agent.
Even 'zero down' loans have buyer closing costs attached to them. Make sure your lender and your agent give you written estimates of these costs and that you understand what they are for.



Ten Mistakes Home Sellers Make.

Not using a professional Realtor to sell their home.
Buyers of For Sale By Owner are bargain hunters and rarely pay full market value. To save money, and have your property exposed to most number of qualified buyers, use a professional Realtor.

Not carefully investigating the agent they select.
As in any profession, there are both good and poor real estate agents. Ask your potential agent about their experience and success in marketing properties like yours. Ask them to describe their marketing plan for your home. The specific agent you select is more important than the size of the company they are part of.

Overpricing the house.
Overpriced houses take longer to sell and sell at below market value. Your agent will share current market information with you. Follow your agent's advice. The buyers who are currently looking for a new home (not you nor your agent) determine the current market value. Ask your agent to share information about recent sales and other similar homes competing for your buyer.

Failure to make necessary repairs.
Follow your agent's advice to help make your home sell faster and at a higher price. Buyers will often deduct more than the actual cost of the repairs in the offer they make to you.

Failure to fully disclose defects of the house and property.
The law requires you to disclose any defects you are aware of in your home. Failure to do so can be a costly mistake. Your agent will assist you in complying with the law and in protecting you against costly litigation after the sale. Failure to properly disclose is a common mistake made by For Sale By Owners. Professional help is crucial.

Not placing a For Sale sign on the property.
For Sale Signs attract about one third of the potential buyers for your property who are not already working with an agent. The more people who know that your house is for sale, the greater the demand will be, and the higher the final sales price will be.

Being present while the house is shown.
Buyers feel uncomfortable when the owners of the house are present while they are looking at the home. They like to be able to talk to each other and ask questions of their agent. You should also remember that your potential buyer might be attracted to your home for entirely different reasons you were. Allow the showing agent to emphasize the property features most important to each potential buyer. Be smart; depart when the house is being shown.

Failure to keep the house in 'Model Home' condition.
Make sure the house looks as attractive as possible. Keep it clean and neat, inside and out. Clean kitchens and bathrooms are essential. So are clean windows and a tidy yard.

Agreeing to premature possession.
Whenever possible, avoid allowing the buyers to move in before they take title. Even with a written agreement, getting a tenant out is a difficult, costly and time-consuming affair.

Failure to adhere to the terms of the contract.
The contract you sign with your buyer is a binding agreement on both the buyer and you. Not allowing inspectors and appraisers access to the house, not making agreed upon repairs, not leaving personal property called for in the contract, not making the house available on the day of closing all lead to unnecessary problems. Your buyer expects you to adhere to the terms of the contract, just as you expect them to. If a question arises, speak to your agent.