Real estate values have always risen steadily. Of course there are peaks and
valleys, but the long term the trend is a consistent increase. This means that
every month when you make a mortgage payment the amount that you owe on the home
goes down and the value typically increases. This
owe less-worth more situation is called equity build-up and is the reason you can't afford not to
buy.
Even if you have little money for a down payment or credit problems, chances
are that you can still buy that new home. It just comes down to knowing the right
strategies, and working with the right people. See below.
Deadly Mistake #2: Not hiring a buyer's agent to represent you.
Buying property is a complex and stressful task. In fact, it is often the biggest
single investment you will make in your lifetime. At the same time, real estate
transactions have become increasingly complicated. New technology, laws, procedures
and competition from other buyers require buyer agents to perform at an ever-increasing
level of professionalism. For many homebuyers, the process turns into a terrible,
stressful ordeal. In addition, making the wrong decisions can end up costing
you thousands of dollars. It does not have to be this way!
Work with a buyer's agent who has a keen understanding of the real
estate business and who is on your side. Buyer's agents have a
fiduciary duty to you. That means they are loyal to only you and
are obligated to look out for your best interests. Buyer's agents
can help you find the best home, the best lender and the best
inspector. Best of all, in most cases, the buyer's agent is paid
out of the seller's commission, even though he/she works for you.
Trying to buy a home without an agent at all is, well... unthinkable.
Deadly Mistake #3: Getting a cheap inspection.
Buying a home is probably the most expensive purchase you will ever make. This
is no time to shop for a cheap inspection. The cost of a home inspection is very
small relative to the home being inspected. The additional cost of hiring a certified
inspector is almost insignificant. As a homebuyer, you have recently been crunching
the numbers, negotiating offers, adding up closing costs, shopping for mortgages
and trying to get the best deals. Do not stop now. Do not let your real estate
agent, a patty-cake inspector or anyone else talk you into skimping here.
NACHI front-ends its membership requirements. NACHI turns down more than 1/2
the inspectors who want to join because they can't fulfill the membership requirements.
NACHI certified inspectors perform the best inspections by far. NACHI certified
inspectors earn their fees many times over. They do more, they deserve more,
and yes they generally charge a little more. Do yourself a favor...and pay a
little more for the quality inspection you deserve.