10 Home Buying Mistakes

Buying a home is perhaps the most arduous, expensive and, ultimately, valuable acquisition you'll ever complete

Just one mistake could mean disaster -- perhaps the worst mistake you'll ever make.

In order to avoid titanic trip ups during such a trying transaction, RealEstate.com suggests buyers get to know the most common home buying blunders.

To know them is to avoid them.

Going solo Buying a house is a complex transaction. It should be a team effort. You'll need a real estate agent, lender, inspector, insurer, perhaps a lawyer and other team members to help you through each step of the way. Team build before you start the search.

Love at first sight If you believe in fairy tales you probably shouldn't be buying a home. You won't live happily ever after if you emote your way through the home buying process. Your home should fit your real needs, not your yen for drama. Buy a home that fits your budget and your lifestyle. Be sure the home is in a community and neighborhood you desire. Visit neighborhoods several times before you buy to check out schools, noise and traffic patterns.

'Loanless' shopping Being pre-qualified gives you a general idea of how much you can afford to borrow. It's better to be pre-approved for a given loan. Sellers will take you more seriously. You'll stay on budget.

Overbuying Home buyers buying more than they could truly afford, in part, led to the collapse of the housing market. Buy more than you can afford and your dream home will become the same nightmare. Analyze all your monthly costs including debts, food, transportation, entertainment, and savings. Your total monthly debts, including your mortgage, should not exceed 36 percent of your income before taxes. Don't forget to budget closing costs (often two to five percent of the home's purchase price), plus moving, redecorating and maintenance. Look ahead and allow for increases in ongoing expenses such as utilities and taxes.

Misplaced trust You are engaged in what's likely your most valuable acquisition ever. It's a business transaction. Ask family, friends, co-workers, professionals and others you trust for referrals, but don't take their word for it. Vet your team members.

Accepting oral agreements Get it in writing. The rate lock, the home inspection, disclosures, the contract. Always. Should a dispute arise, you've got the details documented.

Skipping the fine print Understand what's really in any document before picking up a pen. Get documents in advance, take time to read them and ask questions. Get copies of your mortgage and closing papers a few days ahead of closing.

Forgetting or betting on resale Avoid buying a home that costs 50 percent more than neighboring homes. Reconsider buying the most expensive home on the block. Neighbors' lower home values will weaken yours. Buy intending to flip your investment only to have the market fail means when it's time to sell your price may not cover your costs.


Making an unconditional offer Protect yourself with these contingencies:

• Mortgage financing. You may be preapproved but is the house? A formal appraisal confirms -- or not -- that there is sufficient value in the home to warrant the loan. If the house appraises lower than the sales price, the loan may be declined.

• Inspection. Never buy an existing or new home without a thorough home inspection. Walk through the home with the inspector to learn more about the house and any concerns he or she may have.

• Insurance. Confirm you can get adequate insurance coverage. In some areas, or following certain disasters, it can be difficult to get types of hazard insurance.

by Broderick Perkins; from the Real Estate Buyers Agent Council Hotsheet

Did you miss the TX Appliance Rebate? Check out these options...

If you are like me and you tried and tried and tried to make it through the on-line rebate registration process only to find out there were no more funds left, the good news is there are some other options. The City of Austin and the federal government have some ongoing programs that provide funds to qualifying energy efficient appliances.

The City of Austin has multiple energy rebates available for some appliances as well as rebates for efficient toilets.

Mark your calendars for the Energy Star Sales Tax Holiday on May 29-31, 2010.

Check into Federal tax credits for energy efficient purchases.

The US Department of Energy also has information on tax credits available.

Mobile search now available from Cardani Group, REALTORS®

Have you ever been driving around town and noticed a house you'd like to know more about? Gone are the days of having to call the number on the sign, or remember the address of the house for when you get home.

Just download our new mobile app and you'll have real time access to listing information. The app is currently available for iphone/ipod touch/ipad - and we will have both blackberry and android versions available soon.

Just click the icon below, or search for "IDX" in the app store. Once the app is installed, put in the 6438 code and you'll have access to the most up to date listing information available. Pretty slick, eh?

Who do you know that needs our help buying or selling Real Estate in the Austin area? Please - don't keep us a secret!

6438

The April edition of our monthly newsletter is now available!

Our April newsletter is now available for download.

Nowadays millions of people are sending billions of text messages. Texting is great fun and can be a great way to save time, but it can also be hard on your hands, wrists and arms. Check out the article on page three to help avoid “Blackberry thumb.”

If you’re a fan of poetry – and especially if you’re not – April is the perfect time to get acquainted (or renew your acquaintance) with this literary genre. Read more about National Poetry Month on page four.

Enjoy the newsletter! As always, if you have any friends or neighbors who are looking for a better way to buy a home or get their home sold, think of us first and be sure to give us a call.

One of the reasons I love my profession

Just in from the mailbox today and was pleasantly surprised by this sweet card from some clients. It is always nice to get something like this - and it's even more special when it is a surprise and comes from folks you really enjoy.

Thank you Sheila and Gabe! So happy to have you in our real estate family!

The chance for FREE MONEY is ending soon!

What's the difference between a client and a customer?

You know it's funny....there are so many "things" to consider about real estate. Lots of folks want to consider saving some money by "representing" themselves rather than paying a professional for service. I can't tell you how many people have called me on a listing of mine and said they were going to save some money and buy the house without an agent. There are a few things they don't understand:

1- my client, in this case the property owner, is benefiting from my professional services

2- all information the individual tells me can and will be used in the best interest of my client. Although I will not ask them direct questions about their situation, my silence often leads to them disclosing much more information than they should

3- the fees for selling the property have already been negotiated. Because the buyer agent fees are paid by the seller, the buyer is not really saving anything, and the advice they will get from a professional agent will more than outweigh the perceived "savings" from representing themselves. In many of my listings, there is a very small, if any, reduction in the cost to the seller if we're working with another agent who is receiving a commission or a buyer who is "representing themselves" in the transaction. Why? Well, that's a whole different post!

So here's the deal...clients (those who have entered into a written agreement for professional representation) receive great benefit. It is important to understand that a "fiduciary relationship" is only established with a representation agreement. If you don't have one, you're a customer. If you don't have one, there is nobody working in your best interest.

Check out this chart from the Real Estate Buyers Agent Council for a better understanding of a client vs. a customer:



Who do you know that needs professional representation right now? Please, put them in touch with us!

Check out the latest edition of our Housing Trends newsletter

The latest edition of our Housing Trends newsletter is ready for you to view and share with people you care about.

Want to know more about what this information means to buyers and sellers in the Austin area? Be sure and give us a call so we can make sure you fully understand what is going on, and what it means to you!

Buyers Who Wait May Lose a Lot

Money Magazine say's it's so! Potential home buyers who delay have a lot to lose.

First-time home buyer and move-up tax credits worth $8,000 and $6,500, respectively, expire April 30. Buyers who qualify get a dollar-for-dollar reduction in taxes or a cash payment if they don’t pay enough taxes to cover the credit.

Other factors that should spur buyers:

Low mortgage rates. If the Federal Reserve stops buying mortgage-backed securities at the end of March, 30-year rates will almost certainly rise to more than 6 percent.

Rising prices. About 30 percent of markets are already experiencing price increases. Prices are falling in 12 percent of markets, says Fiserv (but that only helps if you want to live there).

Source: Money Magazine, Beth Braverman (03/02/2010)

The March Newsletter is here!

The March Edition of our monthly newsletter is now available for download!

Filled with lots of news and tips - plus some interesting Austin market information. Who do you know that needs our help right now, so they can take advantage of the tax credit, low interest rates, and amazing housing opportunities available right now? Let's help them out!