First Time Buyer Mistakes

Larry Doss Sunday, May 3, 2009

GreatWest GMAC Real Estate professionals continue to be cognizant of mistakes that first time buyers can make. If you are getting ready to purchase a home, here are some of those pitfalls you should avoid:

(1) They don’t ask enough questions of their lender and miss out on the best deal. It is vitally important to be actively working with a professional lender, who has well educated you about the mortgage programs available to you, so that you are ready to act, when a home to your liking is found.

(2) They don’t act quickly enough to make a decision and someone else buys the house. With desirable homes that are well priced, Buyers can lose out to other prospective Buyers who act swiftly.

(3) They don’t find the right real estate professional who is willing to help through the home buying process. It is especially important to find a real estate professional, which communicates well with you, educates you to the process, and makes you feel comfortable in making decisions, and guides you through the home buying experience.

(4) They don’t do enough to make their offer look good to a seller. Although the home buying is a process of negotiation, and money can be saved, it is also important to understand it is important that the Seller finds the offer attractive to their needs. With bank owned properties, this isn’t an emotional process for the Seller (bank); but many bank owned properties have multiple offers, and you are often competing with other Buyers for the property, and if you really want the property to become your home, it is often important to make your highest and best offer to procure it.

(5) They don’t think about resale before they buy. The average first-time buyer only stays in a home for four years. This is an important issue to remember. If the property is on a busy corner, has only a single car garage, or other disadvantage, which can’t be easily overcome, this can hinder you at resale.

(6) They get real estate advice from their friends and family who have no real estate expertise. An example is the first time Buyer who thinks they can get a 2% interest rate loan, because a family member (who is supposedly real estate savvy) told them the prime rate was 2%. This is another reason to be in good communication with a professional mortgage lender, who has fully educated you about mortgage programs available to you, and their current associated interest rates.

Written for GreatWest GMAC
by: Myrl Jeffcoat

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