Buying? Avoid a few of These

by WestsideDB

1. Knowing how much house you can afford. You don’t go shopping for a car or for groceries without knowing how much money you have do you? It’s the same with a house — get pre-approved and know what you can afford on a monthly basis. The Santa Monica Real Estate Group does free consultation for financial planning. Contact us to find out more.

2. Assuming foreclosures are great deals. If you lost your home to foreclosure, had your credit trashed, and essentially were kicked out, the likelihood that you’d take anything not bolted down is high. If you were angry enough, you might trash the house. Most foreclosures need work. You need to be prepared for it and either have cash on hand, or obtain a retro-fit loan. Additionally, not all foreclosures are priced accordingly. Many REO ‘experts’ list properties in an area they don’t know at all – in fact, they live and specialize in a completely different market. Do your homework and get an agent who specializes in that area.

3. Letting your true feelings show at an open house. It’s a little like poker. Don’t give away something to a seller that you may use as a negotiation tactic later. For instance, “We like it, but we have to sell our house first”. Don’t EVER say that.

4. Failing to find a good buyer’s agent. Ask friends who have had a good experience. Check out yelp.com and don’t expect that all Realtors are the same. You have started down a great road by reading this white-paper and realizing the value of working with WestsideDB and the Santa Monica Real Estate Group. Our moral compass points truer north than most other agents. Ask us about it.

5. Underestimating the costs of owning a home. The monthly bills, the cost of a gardener or the homeowner’s dues (HOD) can add up. Save some money from the purchase for fix-up costs, new paint, cleaning the carpets or refinishing the beautiful hardwood floors.

6. Failing to budget for property taxes. Figure about 1.125%+ of the purchase price and either have it impounded into your monthly payment so you don’t have to worry about it, or save each month so you don’t get a Whammy! every six months.

7. Assuming your first offer will get accepted. Rarely will you get the first home you put an offer in on. It’s a competitive market and well-priced listings are still going into multiples. Be prepared for it.

8. Skipping the inspection. NEVER do this. Be involved. Ask questions. There will always be something the inspector finds. This is your leverage for getting an even better deal and truly knowing the property.

9. Doing too much too fast. You are already on a rollercoaster (or the turbulent airplane). You’ve got your new keys. Take a breath. It will all come together.

10. Failing to include a contingency clause in the contract. This is your way out of the deal. Please refer to the CONTINGENCIES section of our white-paper you can download on the right.

WANT MORE GREAT INFO? CONTACT WESTSIDEDB HE’LL HELP YOU AVOID THESE MISTAKES AND FIND THE HOME OF YOUR DREAMS

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