Mistakes to Avoid

Conventional wisdom hold that “Buyers decide on emotion, and justify on logic.”  Shopping for a is an emotional experience. It’s time consuming and you have to confront many details.  While we at Team Cox will guide you through the process, you should still consider common pitfalls you may face.  These generally fall into three areas:

Paying too much or more than you can afford
Losing your dream home to another buyer
Buying the wrong home for your needs
Read these tips and you will be better prepared before you make an offer.

1.  Bidding without sufficient information
What price do you offer a seller? Is the seller’s asking price too high? Is it a deal? Without research on the market and comparable homes, you could lose thousands of dollars. Before you make that offer, be sure you have researched the market.  Without knowledge of the real estate market, your offer could be too much. Or worse, you could miss out on a great buying opportunity.  Bonnie and Jim Cox will offer an unbiased opinion on the value of a home, based on market conditions, condition of the home and neighborhood.

2.  Buying a mis-matched home
What do you need and want in a home? Sounds simple. Yet, clearly identifying your needs and being objective leave you in a better negotiating position. Sometimes, buyers purchase a home that is too large or too small for their needs. Perhaps they didn’t consider the drive to work, the distance to school, or the many repair jobs waiting for completion. Plan ahead. Use your needs list as a guideline for every home you view.  The Team Cox will help you develop that list of needs and wants, to save you time when you start looking.

3.  Unclear title
Before you sign any document, be sure the property you are considering is free of all encumbrances.  Team Cox will supply you with a copy of the title to ensure there are no liens, debts, undisclosed owners, leases or easements, and guide you through the escrow process with a reputable title company.

4.  Outdated survey
Before the 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 a boundary line, etc.).  Many realtors will tell you a survey isn’t necessary, but don’t believe it.  You will have to pay to move your fence if it is encroaching on the neighbor.  Bonnie and Jim Cox can recommend several well-known and respected surveyors for you to consider.

5.  Unexpected repairs
For $300 – $500 a professional inspector will conduct a thorough inspection of the home. This way, you’ll have an idea of the cost of future repairs.  Team Cox will help you write a contract which protects your interests.

6.  Shopping without pre-approval
It only takes a few days to get financing pre-approval. When you are shopping for a home, this gives you more power. A seller is more likely to consider an offer from a serious buyer who has taken the time to find out what they can afford.  Use our calculator to start the process, and then ask us for referrals to reputable lenders.

7.  Remember additional cost
Besides the funds for the purchase of a home, you’ll need funds for items such as loan fees, insurance, legal fees, surveys, inspections, etc.  Ask for a preliminary HUD 1, or settlement statement, from your lender and title company to get a good understanding of costs before you make an offer.  Bonnie and Jim Cox can help you total the costs involved.

8.  Rushing the closing
Before you sign, ensure that all documentation clearly reflects your understanding of the transaction. Has anything been forgotten? Don’t rush. You could lose money, financing or even the sale.  Don’t underestimate the complexity of a real estate purchase.  Use a professional realtor like Bonnie or Jim Cox – remember, our services are free to the buyer!

Bonnie and Jim Cox
The Cox Team
Office: 303-400-6060
E-Mail: Info@TeamCox.com