Drumroll please......
I really had to narrow this list down to keep it pithy (sorry, i guess that was just me channeling Bill O'Reilly for a second!), but here are the top 5 WORST ideas for you to do as a buyer when in the market for a new home:
Mistake #1: Not being honest with your buyer agent. Worst mistake possible. Interview agents carefully to find one you can trust....then TRUST him or her. You are making what is most likely one of the largest financial decisions of your life. As your principal advisor, your buyer agent should be guiding you through the transaction. Not knowing your financial situation, or what your needs truly are, makes that job a lot harder. At the end of the day, you have a choice to hire a buyer agent or not, and although I fully recommend it since it comes at no cost (plus I am self serving!), the choice really is yours. BUT - if you are going to hire an agent, do it right and help him or her help you by being open.
Mistake #2: Behaving like a ravenous stars wars fan at the premier at an open house. You know what I mean. Just way too excited and emotional about how much you love the place. Yeah....don't do that. Feedback about any home, good or bad, should be for you and your buyer agent only. Don't harm your negotiating stance before it starts. I've been on the selling side of these situations and, let me tell you, it's like picking cherries.
Mistiake #3: Not getting FULLY preapproved for a mortgage BEFORE looking at homes in person. Ok, this might not seem so serious, but I can't tell you the dissappointment in the faces of buyers who realize they can only afford $400K after looking at places for $500K before they were preapprove. Instantly puts a bad spin on the whole transaction and it becomes depressing rather than exciting to buy a new home. Don't emotionally torture yourself....the process is emotional enough as is.
Mistake #4: As an add on to #3....not figuring out a personal budget for the monthly costs AND the transaction costs (down payment, closing costs, taxes, etc). Where is the downpayment money coming from? Is the money "aged", meaning it has been in your accounts long enough for the mortgage bank to recognize it is yours (usually 2-3 months prior)?
Mistake #5: Not FULLY researching the condo association. You are not just buying your unit, you are buying a share of the building - all of the maintenance that is inherent in that, plus any positive or negative financial issues.
Mistake #5.5: I had to add this in the list: Not reading this blog first!!