Tennessee Triubune Article

July 3-9, 2008

Each year thousands of Nashvillians embark on a journey to become a homeowner.

By avoiding these five common mistakes, you will be sure to make an excellent real estate investment.

1) – Not Being Pre-Qualified For Financing Before Looking

When beginning to look for a home, it is important that you know how much you can comfortably spend on a home. Getting pre-qualified for financing will help you develop your price range and help prevent you from being turned down after falling in love with a home. It will also save you the strain of having to find a lender within a few days of conditionally buying a home. In times of fluctuating interest rates it would benefit you to lock in a lower rate. This could save you thousands of dollars if the rate increases while you are in the process of buying a home.

2) - Failing To Seek Out The Services Of An Experienced Realtorâ

Many home buyers are unaware of the fact that in almost every case they are not responsible for paying the agent’s fees; the agent is being paid a commission from the seller. It is always best to seek out an experienced real estate agent that can use their information regarding recently listed and sold properties to get you the lowest price possible. Buying a home without a Realtor is like court without a lawyer. It is imperative that you have someone working in your best interest.

3) - Failing to Research the Market before Making Your Offer

Have your agent prepare all the area sales and comparables in your area and get a copy to look over before you make your offer. This will help ensure that you do not overpay what the home is really worth. In most cases, this is the same type of information that the seller saw when setting the price of their home.

4) – Not Understanding the Common Negotiating Methods Used At Offer Time

Some buyers have been told that the best way to get a good price is to low-ball the seller from the start in hopes that the seller will drop their price down fast in their counter offer. In reality this often does nothing more than upset the seller and will probably end up ruining the chance at an acceptable offer to both of the parties involved. Have good communication with your agent, and they will be able to inform you on the many proper ways to negotiate a deal and still get you the lowest price.

5) - Failing To Complete a Home Inspection

Buying a home often times is the most important investment and financial transaction that you will ever make. A home inspection can save you hundreds or even thousands of dollars. In addition to the inspection, it is often a good idea to request some type of Home Warranty to cover the electrical appliances that come with the home.

Denise J. Beard is a Real Estate Broker with Crye-Leike, Realtors in Nashville, serving the Middle Tennessee area. She can be reached at 615-373-3456 or at www.denisejbeard.com. If you have a real estate question or a topic that you would liked covered, please e-mail Denise at denise@denisejbeard.com.