3 Costly Mistakes Every Home Buyer Should Avoid.
By David M. Haught, CHI

This is a reprint from the Herald Dispatch March,19 th 2006 edition.
Home "Health" & Safety Tips

 

Costly Mistake #1: Thinking you can't afford it.

Today, buying the home of your dreams is easier than ever before. Many people who thought that buying the home they wanted was simply out of their reach are now enjoying a new lifestyle in their very own new home.

Buying a home is the smartest financial decision you will ever make. In fact, most home owners would be financially broke at retirement if it weren't for one saving grace - the equity in their home. Furthermore, mortgage rates are more flexible today than ever and tax allowances, allowing the deduction for mortgage interest and tax credits for energy saving improvements, favor home ownership.

Real estate values have always risen steadily. Of course there are peaks and valleys, but the long term the trend is a consistent increase. This means that every month when you make a mortgage payment the amount that you owe on the home goes down and the value typically increases. This owe less-worth more situation is called equity build-up and is the reason you can't afford not to buy.

Even if you have little money for a down payment or credit problems, chances are that you can still buy that new home. It just comes down to knowing the right strategies, and working with the right mortgage lenders..


Costly Mistake #2: Not using a Professional Real Estate Agent to represent you.

Buying property is a complex and stressful task. In fact, it is often the biggest single investment you will make in your lifetime. At the same time, real estate transactions have become increasingly complicated. New technology, laws, procedures and competition from other buyers require buyer agents to perform at an ever-increasing level of professionalism. For many homebuyers, the process turns into a terrible, stressful ordeal. In addition, making the wrong decisions can end up costing you thousands of dollars. It does not have to be this way!

Work with a Professional Realtor who has a keen understanding of the real estate business and who is on your side. Your Realtor has a fiduciary duty to you. That means they are loyal to ONLY you, they are obligated to look out for your best interests. A Professional Realtor can help you find the best home, in the right neighborhood, the best lender that will work for your best interest and the best inspector to perform a thorough and accurate Certified Home Inspection. Best of all, in most cases, the buyer's realtor is paid out of the seller's commission, even though he/she works for you. Trying to buy a home without a Professional Realtor is, well... financially unthinkable.


Costly Mistake #3: Not selecting a qualified inspector.

Buying a home is probably the most expensive purchase you will ever make. As a homebuyer, you have recently been crunching the numbers, negotiating offers, adding up closing costs, shopping for mortgages and trying to get the best deals. Not taking the time to select a qualified inspector could cost you thousands. Selecting a qualified home inspector may be harder than you think. West Virginia, Ohio and Kentucky currently do not have licensing for home inspectors. Kentucky licensing starts July 1 2006, Ohio and West Virginia legislation is in state legislative committees. Bottom line is anyone, without training, equipment, experience, or a clue how to inspect a home can say they are a home inspector.

How to find a qualified home inspector? The inspector should have had a formal classroom training experience. Like ITA, the only school recognized by the American Society of Home Inspectors. (Go to www.homeinspection.com )

The home inspector you select should also be a member of NACHI (National Association of Certified Home Inspectors), ASHI (American Society of Home Inspectors), NAHI National Society of Home Inspectors, and follower their Standards of Practice, and Code of Ethics? (Go to www.nachi.org ) This insures that your inspector doesn't repair what they find during the inspection and is independent from the Realtor and the other parties involved in the transaction. Some unqualified inspectors have built their contracting or pest control businesses on repairing or treating questionable items found during a home inspection.

Your Home Inspector should provide you with an easy to read and understand printed Home Inspection Report. Some inspectors will use a hard to read, hard to understand hand written carbonless form. Make sure your report is printed and contains full color digital photographs depicting the inspector's findings. (Go To www.homegauge.com ) to find an inspector using this state of the art reporting system.(gold or platinum level inspector)

One way to determine if your inspector is up to date technologically, see if they have an informative web site, e-mail, text messaging, if you can receive the complete report via the internet and if you can schedule appointments over the net? (Go to www.wvchi.com ) and see.

It may take a little research to find the right Professionals to assist you in the largest investment of your life, but it is worth the investment of time.