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Dan the loanman


Friday, January 14, 2011 - Article by: Dan the loanman - ArcStone Financial Services - Message

1. Not knowing how much house you can afford.

2. Assuming foreclosures are great deals.

3. Letting your true feelings show.

4. Failing to find a good buyer's agent.

5. Underestimating the costs of owning a home.

6. Failing to budget for property taxes.

7. Skipping the inspection.

8. Doing too much too fast.

9. Failing to include a contingency clause in the contract.

10. Assuming your first offer will get accepted.

Here's my take on each of these:

1. Don't let a bank tell you how much you should borrow. Figure out what you can afford (including your down payment) and get a home in that price range. Some people think you should buy more house than you need. I MAY agree with this - as long as it's not more house than you can AFFORD.

2. Foreclosures can be good deals, but they also often come with a lot of baggage (like the homeowners trashing it before they left.) Just go in with your eyes wide open and expecting there to be "surprises".

3. Never let your true feelings show. Even tell your kids (if you have them) not to comment on a home when they go in with you. They can say whatever they want to you once you're back in the car, but while we're in the house, they aren't to comment good or bad on the place.

4. FYI; Picking a bad agent can be a real drain on you physically, emotionally, and financially. Thankfully, there are ways to pick a good realtor.

5. There are all sorts of costs in buying a home. General maintenance goes without saying, but also consider, the one-time costs of painting, carpeting, new furniture, etc. that you'll need to buy if you get a new home.

6. Real estate taxes go up, but hardly ever go down (at least much), even in this economy, remember this as you plan your expenses.

7. You're going to buy something for a few hundred thousand dollars (most likely). Don't you think it's worth it to pay $400 or so to see if it's in good shape get a (home inspection) done! Money well-spent!

8. Goes along with #5. Not only do you need to budget for everything, but don't worry about doing it all within a month or two of moving in. Plan for a six to twelve month time period before getting fully settled and before you do anything major to your home.

9. Consider a contingency clause in one of my most recent deals my buyer would have been stuck with a major problem.

10. Taking it to personal; it is very unrealistic to think your first offer will be accepted, unless it is a full price offer. So DO NOT take it personal.

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