Mistakes to Avoid When Buying a Home in 2008
Mistakes to Avoid When Buying a Home in 2008
Free Online Articles Directory
Why Submit Articles?
Top Authors
Top Articles
FAQ
AB Answers
0 && $.browser.msie ) {
var ie_version = parseInt($.browser.version);
if(ie_version Hello Guest
Login
Register
Hello
My Home
Sign Out
Email
Password
Remember me?
Lost Password?
Home Page > Finance > Real Estate > Mistakes to Avoid When Buying a Home in 2008
Mistakes to Avoid When Buying a Home in 2008
Posted: Jan 30, 2008 |Comments: 0
|
]]>
Buying a home shouldn’t be a hassle, an aggravation, time consuming, or costly. Regrettably many prospective home buyers will have that type of experience. The reasons why? Lack of experience buying and selling homes. Let’s face it many people have never bought a home, and many have not done so for years. All the while the rules within the real estate market change constantly, except one; home buyers make the same mistakes every year.
The most egregious mistake is not hiring an experienced, reputable, ethical agent to represent them. This one step would save the home buyer the embarrassment of making all the associated mistakes made by those without proper representation. Especially the x and y geners who count on the information received on the Internet to protect them. The Internet alone can’t protect you.
Mistake number one is believing real estate agents are interchangeable. The one thing to know is there are only two types of agents, one who’s primary concern is you (the client), and one who’s primary concern is their commission. How can you tell which are the wolves in the sheep’s clothing? Ask around, trust your instincts, and when you meet an agent follow your intuition. If something doesn’t feel right, it probably isn’t. Trust will be paramount to a successful home purchase.
Huge mistake number two is the failure to think resale and buying an overpriced home, something the commission driven agent will be happy to accommodate. Millions of families own homes today where they owe more on the home than it’s worth. This happens in every market, every year. Investors ran up prices to unsustainable levels in many bubble markets; an experienced agent would have advised renting instead of buying, until the market corrected. In the non-bubble markets buyers that purchase overpriced homes do so either on their own, or with the complicity of the commission driven agent.
Here in Springfield Illinois we did not have a bubble, except for those buyers that paid too much for their homes. Here’s proof. Of 25 single family home sales during 2007 in the Piper Glen subdivision, one of Springfield’s pricier neighborhoods, there were eight winners, and seven losers when they sold. The other ten were initial resales with no basis to determine the original purchase price. During the seller markets in 2004 through 2005 many agents treated Piper Glen like a bubble market and started listing homes at unrealistic prices in my humble opinion of 21 years experience.
The definition of a winner is a homeowner that sold their home for more money than they paid for it at purchase. The definition of a loser is a homeowner that sold their home for less money than they paid for it at purchase. The winner’s gains were not as huge as the loser’s losses. Of the eight winners the difference between their original purchase price and their sale price in 2007 ranged between $3,500 and $49,500. Of the seven losers the amount of money the home sold for below their original purchase price ranged from losses of $8,850 to $62,500, not including selling expenses.
The eight winners sold their homes for an average $18,638 more than purchase price. The seven losers sold their homes for an average of $26,214 less than their purchase price. A real life example of paying too much at purchase. Of course other factors are involved such as length of ownership, and supply and demand at the time of sale. However with an equal number of winners and losers selling the same year, odds are those with losses bought overpriced homes. Think resale, and hire an agent you can trust to be honest with you about prices.
How do home buyers get caught in this trap? What other result do you expect if you don’t interview and hire a professional you can trust? Most find their agent by accident, or don’t use an agent at all. Only calling agents off signs, or advertisements is a perennial ritual of novice buyers, and it’s risky business. The only thing you know about these agents is that they have a name on a sign or ad. That’s kind of like a blind date with serious financial ramifications.
Another cause for buying an overpriced home is that the buyers were not familiar with the local market, and were transferring from a higher priced market. Once they were referred to the commission driven agent, their fate was sealed. Most transferees automatically trust the agent to whom they are referred. This could be a major mistake.
Another annual costly ritual of home buyers is the shopping of, and looking at for sale by owner homes without representation. Who do you think has the buyer’s best interest at heart in that transaction? The seller with everything to gain, or the buyer with everything to lose?
The big mistake that leads to this accident waiting to happen, is that many buyers perceive that FSBO’s are lower priced because the seller isn’t paying a commission. The only people who know better are the people who bought for sale by owners and are now trying to sell those homes without losing their shirts. A survey of three local mortgage lenders provides all the proof you need, FSBO’s only accounted for around 10% of all sales, but accounted for more than 95% of the homes that short appraised. Short appraised means the home buyer got screwed on price. Unfortunately most buyers won’t believe that and will make this perennial, and likely financially calamitous mistake.
There are many other blunders the inexperienced, uneducated in the process, prospective home buyer will make, such as; offering too low on a fairly priced home and losing the home to another buyer; failing to obtain financing pre-approval before writing an offer and losing the home to a pre-approved buyer; failing to buy a home inspected by a licensed inspector; failing to act quickly enough after finding the right home; and payment shopping, just because you can afford it, doesn’t make it worth it!
Bottom line, hire an agent you can trust, or be prepared for whatever comes your way. There’s a saying; If you want to make God laugh, tell him what your plans are. Believe that.
Retrieved from “http://www.articlesbase.com/real-estate-articles/mistakes-to-avoid-when-buying-a-home-in-2008-320027.html”
(ArticlesBase SC #320027)
Liked this article? Click here to publish it on your website or blog, it’s free and easy!
Fritz Pfister -
About the Author:
Fritz Pfister is a licensed Realtor with RE/MAX Professionals Springfield Illinois.
Fritz is a leader in the local real estate market and hosts a live one hour radio program, now in its’ 13th year.
Fritz’s website is
SpringfieldHome.com
Fritz hosts home buyer and home seller seminars that have been attended by hundreds of consumers.
Fritz provides advice that helps consumers succeed in the sale or purchase of homes.
]]>
Questions and Answers
Ask our experts your Real Estate related questions here…200 Characters left
Hello i am considering buying a home my credit is bad i do have a good paying job i was wondering if i come up wid 5,000-8,000 is it possible i can buy a home??
What are three steps in buying a home ?
Do you know of a place to buy autralian home business leads?
Rate this Article
vote(s)
0 vote(s)
Feedback
RSS
Print
Email
Re-Publish
Article Tags:
perennial home buyer mistakes
Latest Real Estate Articles
More from Fritz Pfister
March Home Sales Down In Stable Springfield Illinois Market
This central Illinois housing market has experienced corrections the past couple years, usually three to five percent. The drop this time will get your attention with the first quarter home sales falling nearly twenty percent.
By:
Fritz Pfisterl
Finance>
Real Estatel
Apr 09, 2008
Hardscaping to Add Value to Home
Adding curb appeal, getting the most for your money, and increasing resale value for your home can be achieved with a professional landscaper. A landscaper can achieve this with landscaping, designing, and hardscaping with the use of rocks, paths, window boxes, and more.
By:
Matthew Buquoil
Home and Familyl
Jul 12, 2008
NYC Apartments and the benefits
Finding proper living place is difficult task in any other city but finding a suitable apartment in New York City is more worse, it is not only tiring process but also scary process, because these apartments are occupied so fast, if you find the one and you take time to think and decide to rent the apartment before that the apartments might have been occupied by some other people so it scares the people who are trying to rent these beautiful NYC Apartments.
By:
Anjalil
Finance>
Real Estatel
Dec 27, 2010
Homeowners advertising their homes for rent might face certain problems and issues if they’ve not drafted their rental plan in the correct manner, or if they’re ignorant of the legal implications, and the rules and regulations affecting individuals owning properties and planning to let them to potential tenants. The article provides certain tips and pointers which can greatly help you in working out your rental activity.
By:
Sharon Leel
Finance>
Real Estatel
Dec 27, 2010
No Fee NYC Apartments are advantageous
Most of the apartments in New York City are Fee apartments. These apartments can be found with the help of a real estate agent and he will charge you some fee for looking an apartment for you. Generally he will charge one month rent or 15% of one year’s rent this is how they earn for their livelihood by helping the new residents to find the rental place.
By:
Anjalil
Finance>
Real Estatel
Dec 27, 2010
No Fee NYC Apartments and the various types
Many people prefer to rent a No Fee NYC Apartments that way they can save some money, at least couple of thousand dollars, which is very useful for the people who are new to this city. To find the perfect apartment, the first step must be getting right service for the right apartment search. These rental services are usually the most effective way to locate the perfect apartment.
By:
Anjalil
Finance>
Real Estatel
Dec 27, 2010
Importance Of Home Inspection – Barrie Real Estate
It is important to have your dream home inspected before you decide to buy it, no matter how tedious or expensive the process would seem. Buying a home is a major investment and you may very well find yourself having to fix certain things down the road, which is an added expense. Below is a look at certain important things to watch out for during your Barrie real estate home inspection.
By:
Ian Hockingl
Finance>
Real Estatel
Dec 27, 2010
Manhattan Apartments in the New York City
New York City Apartments are very famous and they are built with basic facilities in all apartments. Manhattan Apartments are considered to be the best in New York City all the apartments have fantastic facilities available. These apartments are modern, and suites today’s generation, all the apartments are surrounded with beautiful landscape and they have all the amenities and luxuries which you can find in five star hotel but much cheaper price than the five star hotel.
By:
Anjalil
Finance>
Real Estatel
Dec 27, 2010
Factors of Colorado that attracts tourists and people for relocation
Colorado Springs is very popular in the tourist from the whole world. It is the place where people want to relocate from the other place.
By:
simon mathewl
Finance>
Real Estatel
Dec 27, 2010
Things You Might Like To Look Into When Buying A Home
Exactly what first time home buyers grants? On a yearly basis, North America government is awarding free money or grants in the form of money awards to responsible and deserving citizens.
By:
Gerald Homerl
Finance>
Real Estatel
Dec 26, 2010
Home Sales Springfiled Illinois Sink to Record Low
The housing market’s cash for clunkers moment is ending as the housing market settles into slow going.
By:
Fritz Pfisterl
Finance>
Real Estatel
Aug 09, 2010
Bail Out Harms Responsible Homeowners
Treasury is about to implement the bailout plan that rewards bad behavior, while penalizing those who followed the rules.
By:
Fritz Pfisterl
Finance>
Real Estatel
Oct 13, 2008
lViews: 305
August Slump for Springfield Illinois Home Sales
August home sales continue trend of slowing Springfield Illinois real estate market. The media impact upon the market doesn’t help.
By:
Fritz Pfisterl
Finance>
Real Estatel
Sep 08, 2008
The Price of Oil and The Price of Your Home
The impact of energy policy will affect your home’s value.
By:
Fritz Pfisterl
Finance>
Real Estatel
Aug 04, 2008
Home Sales 2008 Springfield, Illinois; Stable Market Changing
Touted as the best housing market in the Midwest in 2007, the market is changing with the pull back in consumer spending.
By:
Fritz Pfisterl
Finance>
Real Estatel
Jul 03, 2008
Selling a Home In a Bear Market
Economic news paints a picture of a slowdown, however there will be thousands of homes that sell. Here’s how.
By:
Fritz Pfisterl
Finance>
Real Estatel
Jun 24, 2008
Tenuous Times in Illinois Housing Markets and Why
Government policy is causing a slowdown in home sales, and there will be little relief in the near future.
By:
Fritz Pfisterl
Finance>
Real Estatel
May 21, 2008
Home Sales April 2008 Springfield IL., Governor Blagojevich Proposal
While home sales begin to recover in April, governor Blagojevich proposes devastating changes. Seems voting for change can have its’ perils.
By:
Fritz Pfisterl
Finance>
Real Estatel
May 17, 2008
Add new Comment
Your Name: *
Your Email:
Comment Body: *
Verification code:*
* Required fields
Submit
Your Articles Here
It’s Free and easy
Sign Up Today
Author Navigation
My Home
Publish Article
View/Edit Articles
View/Edit Q&A
Edit your Account
Manage Authors
Statistics Page
Personal RSS Builder
My Home
Edit your Account
Update Profile
View/Edit Q&A
Publish Article
Author Box
Fritz Pfister has 19 articles online
Articles Categories
All Categories
Advertising
Arts & Entertainment
Automotive
Beauty
Business
Careers
Computers
Education
Finance
Food and Beverage
Health
Hobbies
Home and Family
Home Improvement
Internet
Law
Marketing
News and Society
Relationships
Self Improvement
Shopping
Spirituality
Sports and Fitness
Technology
Travel
Writing
Accounting
Banking
Credit
Currency Trading
Day Trading
Debt Consolidation
Insurance
Investing
Loans
Mortgage
Personal Finance
Real Estate
Taxes
Wealth Building
]]>
Need Help?
Contact Us
FAQ
Submit Articles
Editorial Guidelines
Blog
Site Links
Recent Articles
Top Authors
Top Articles
Find Articles
Site Map
Webmasters
RSS Builder
RSS
Link to Us
Business Info
Advertising
Use of this web site constitutes acceptance of the Terms Of Use and Privacy Policy | User published content is licensed under a Creative Commons License.
Copyright © 2005-2010 Free Articles by ArticlesBase.com, All rights reserved.
