Mistake #1: A potential home buyer should never rush to put down a deposit. First, think about how long you plan to own the house. What type of market and demand does the home have in terms of selling it down the line. Making a list of pro’s and con’s and articulating your thoughts on paper can help you make a proper decision before leaving a deposit. Changing your mind after leaving a deposit means saying bye bye to your deposit..
Mistake #2: Trying to avoid an engineer inspection in order to save the $400. Structural problems and other major repairs are usually not covered under a contract of sale. Although adequate plumbing, heating, roofing electrical systems are covered they are minor issues compared to structural issues.
Mistake #3: First time home buyers don’t learn about the home buying process. One must understand the whole process from A to Z including all the “lingo” in order to help secure their biggest investment yet.
Mistake #4: Hiring a “lawyer” that represents the real estate and not you. This often occurs when a real estate company or developer recommends an attorney that has allegiance to the developer. Hiring a legal Representative where there is a conflict of interest is a dangerous move.
Mistake #5: Not reading the actual agreement. It may seem simple, but many home buyers avoid reading all the claws in the contract. Your real estate attorney must explain every detail to you as what he deems good for you may not always suit you.
Mistake #6 : Not preparing for a delay in closing. Sellers do not always move out in time. If you have a landlord and are renting you should try to agree upon a flexible extension option. If your seller is not ready to close right away you should avoid telling your mortgage broker to lock your rates.
Mistake #7: – Not being familiar enough with the area and the neighbors. One must inspect ever aspect of living in the new area they plan to buy real estate in. Is the area safe? How are the neighbors? Are the schools a good fit? Is it quiet at night? Is the area developing well (roads, shops, municipality etc.)? Ask around and look around and try to learn as much as possible about your potential new neighborhood.
Contributed to the Robert Aronov NYC Law Blog