Wilkinson Era Real Estate

Costly Emotional Mistakes that Homebuyers Make

by Mundy Bringuier 07/21/2019

For most homeowners, a home is not just a property with four walls and a roof over their head. Over time, it becomes a place that reminds them of sweet memories spent with family and friends. Buying a home is expensive, and as a result, it is essential that you relegate any form of emotions and apply business-minded strategies in making good decisions. With this in mind, here are some costly emotional mistakes home buyers make and how you can avoid making them.

Falling in love too quickly

Buying a home can play with your emotions. But you must balance your dreams with the realities of your budget. Turn a deaf ear when the agent tells you "Oh, this house was made for you," or "It suits you perfectly," Focus on what you want in terms of space, location, maintenance, and the price. If you are buying a house, buy the one you need rather than what you want.

Allowing others to "steer" the process 

Agents and family members can be assertive in attempting to "tell" you what home to buy. What's more, friends who won't even live in the house will aggressively offer opinions about the subject. In an attempt to please others, some homeowners get highly emotional and buy a house they never liked. It is your house, and you will be the one living in it. Friends and loved ones only visit. So put yourself in charge of the buying process. 

Overpaying for a property 

Another common emotional mistake homebuyers make is paying too much for a property. Buyers—especially new ones—always tend to become desperate to buy a house or buy a house in a popular area, and most time, they end up paying far too much for the property. To avoid overpaying for a home, keep your emotional side locked and check the prices of similar houses in the area to avoid being ripped off. 

Putting the pen on paper too soon 

Generally, before you purchase a house, you need to sign a contract and pay a deposit. However, don't get too excited and sign the contract immediately you make the decision. Take your time to read through every line of the agreement. Also, get a seasoned lawyer or property professional to guide you, to ensure your interest comes first and insert any needed clauses. It is tough to make changes once you sign a contract.

Although buying a house can be an emotional experience, it is also an exciting time. Avoiding emotional mistakes, doing your research and keeping a calm head should help you to get a good home that meets all your needs.

About the Author
Author

Mundy Bringuier

 

When Buyers ask why I need a REALTOR®, here is my response....... with 19 years of experience. For one thing we have the experience, we know the pit-falls, and we know what to look out for when something doesn’t look right from experience.

A REALTOR® with experience is PRICELESS. A REALTOR® is well worth the money that you don’t pay. We can save you from losing money, there are many things that can go wrong (“Time is of the Essence”) in a contract, which means you make one mistake, miss a date on contract it can cause the contract to be terminated and can lose your Ernest Deposit Money which can be devastated to any buyer especially a first time home buyer.

A REALTOR® job is to protect you to the best of their ability, look out for your best interest, be loyal to you, provide you with all material facts that could influence your decision(s), follow your lawful instructions, keep confidential information confidential and to help you negotiate the best price.

Here are some things you may not be aware of: in just one purchase transaction:

  1. There are nearly 300 communications that takes place between, the seller(s), agents, attorney, lender, inspectors, insurance companies, surveyors, appraisers with emails, text, faxes and phone calls.
  2. Nearly 400 documents/pages, all of which have significant consequences if you don’t fully understand.
  3. Review of documents/Insure accuracy: Offer to Purchase and Contract, HOA documents (covenants & restrictions), Loan package, Addendums, Property Disclosure Statements, Attorney documents, Review the final financial statement (HUD-1) to insure you get every penny that is due you.
  4. Coordinate all events: starting making appointment to show properties, home and termite inspections, surveyors, appraisers, repairs to be done, closings. The list goes on of probable unforeseen things that may come and they do come up that needs to be handle to keep everything running smooth and to help prevent the contract from being terminated.
  5. If the purchase transaction doesn’t close it can be devastating to all parties involved in the transaction. There is consist communication with the lender and the attorney.

It is the REALTOR®’s job in represent the buyer to accomplish all of the above and to do what’s best for the buyer and it doesn’t cost the buyer one penny.

Bottom line.... Get a REALTOR® to represent you, I course I would hope you choose me but whether you choose me or another REALTOR®, get yourself a REALTOR®, after all purchasing a home is not something you do every day, twice a year or even once a year. We do, it’s all we do every day, all day.

As for New Construction:

A common misconception when purchasing new construction is that you don’t need a

REALTOR®. Ask any sales agent working for the builder and the answer you'll get (guaranteed) is that you don't need a REALTOR®, they can take care of everything. This may be true but it doesn't get you personal representation that all buyers should expect and have.

A good question to ask is, "Who will represent me?" Now the answers come down to, "We will...." Think about it, these representatives are employed by and responsible to the builder. Why would someone believe that the potential for a "conflict of interest" doesn't exist?

Case in point, "Do I need an inspection?" The answers provided by the builder is, no, we inspect and do several reviews of the property before you take ownership and you have a "full one year warranty" that covers w, x, y, & z.

Any REALTOR® representing you will tell you that you should have a personal structural inspection conducted even with new construction. Some of the issues identified with our new construction inspections include: missing roof tile, black mold in the attic, sealed vents, faulty smoke detectors, wiring violations, foundation, structure issues, etc. These are the types of problems that the normal home owner may not identify for years beyond the warranty. Now who benefits from being told that an inspection is not necessary?

When buying new construction, having a REALTOR® that represents you personally is a huge benefit from negotiations, asking important questions, monitoring the building process, etc.  The choice is yours, but wouldn't it make sense to protect yourself with personal representation?

Also make sure your REALTOR® accompanies you on EVERY first visit of new builder viewings, as the builders will not take kindly if you view their models without your agent and you may lose your agents representation if you decide to purchase from them.
Choose an experienced REALTOR® when working with new home builders, because every builder is different and each situation is unique, you want someone on your side guiding you step by step through the process and making sure the builder is doing their part in the transaction.

One last comment: It is a common misconception that not using a REALTOR® when buying new construction will save you money. Builders have their fee to the REALTOR® budgeted separately from the house price. So it’s not costing you in the price of the house.

When a buyer does not use a Buyer agent (REALTOR®), the builder pays their sale represented a higher commission, pockets the saving or throws it into their marketing budget.

So instead of asking yourself, “Why should I use a REALTOR®?” the real question is,

“Why wouldn’t you hire a REALTOR®?” At no cost to you, hiring an agent will save you

time today and money tomorrow.

The decision is yours, I'd be honored for the chance to help you. Please call or e-mail me for an appointment that's easy and convenient for you. Thanks for stopping by. I'm looking forward to hearing from you.

Mundy Bringuier, Broker/REALTOR®

PS: Hablo Espanol