Buying a home is a major investment no matter which way
you look at it. But for many Utah home buyers, it's an
even more expensive process than it needs to be, because
many fall prey to at least a few of many common and
costly mistakes: getting trapped into paying too much
for the Utah home they want, losing their dream home to
another buyer, or worse--buying the wrong home for their
needs. A systemized approach to the home buying process
can help you steer clear of these common traps, allowing
you to not only cut costs but also buy the home that's
best for you. This important article discusses the most
common and costly of the house buyer traps, how to
identify them, and what you can do to avoid them.
1. Making too big of an offer
(bidding blind) - What price should you offer on
a property? Is the seller’s asking price too high, or
does it represent a great deal? If you fail to research
the Utah County market in order to understand what
comparable properties are selling for, making your offer
would be like bidding blind. If you are not a
knowledgeable buyer, you could easily bid too much or
fail to make a competitive offer on an excellent value.
Please consult with
Team Teasdale Realty before making your bid. Our Team will
help you do a CMA (Comparative Market Analysis) on the
home you are making an offer.
2. Buying the wrong house in
Utah - What are you looking for in a house? More
than one house owner has been swept up in the emotion
and excitement of the buying process only to find
himself the owner of a house that is either too big or
too small, too far from work, or facing a bunch of
fix-ups that they really didn’t want. Clearly define
your real needs. Put them in writing and discuss them
with Team Teasdale.
3. Not getting a mortgage
pre-approval - For the majority of people, it is
fast, easy, and free. When you have a pre-approved
mortgage, you can shop for your house with a greater
sense of certainty, knowing that the funds will be there
when you find the house of your dreams.
4. Conditions missed - If
a seller fails to comply to the contract by neglecting
to attend to some repair issues, you could face some
delays in the final closing and settlement. Agree, in
the purchase offer, on a dollar amount for an escrow
fund to cover items that the seller fails to do in a
specified amount of time. Prepare a list of the issues
and check them off one by one as they
are done.
5. Hidden costs - When a
transaction closes, you will sometimes find fees for
this or that sneaking through after all the regular
“fees.” It could be loan disbursement charges,
underwriting fees, special property taxes, etc. Our
Team will carefully review your HUD Settlement
Statement. We attend all of our closings and frequently
find errors and overcharges in the closing documents.
6. Rushing the closing -
Take your time during this critical part of the process
and insist on seeing ALL paperwork the day before you
sign (at least one day before--the more the better).
Make sure everything perfectly reflects your
understanding of the transaction, and that nothing has
been added or subtracted. If you wait to do this on the
day of closing, you may run into a last minute snag that
you can’t fix without changing the terms of the deal or,
worse, the sale itself. Finally, make sure the property
has a clear Utah title (no tax liens, leases, etc.),
that you have an updated property survey which clearly
marks your boundaries, and that you conduct a thorough
inspection of the house early in the process.
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