What Are The Most Common Buyer Errors?

How can the most common buyer errors be avoided?
  • October 20 2013 - Sunny Isles Beach
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Answers (17)

Profile picture for Outer Banks N C
"How can the most common buyer errors be avoided?"

With experience. If the buyer doesn't have much then someone to look out for them is needed AKA a Realtor working for them.


tim
  • October 20 2013
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Profile picture for wetdawgs


What do you consider the most common buyers errors?

IMHO, The most common buyer error is to assume all agents are alike, and to not interview rigorously before hiring one.
  • October 20 2013
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Profile picture for Dunes ..
What wetdawgs said.....not educating themselves enough to find a path thru the smoke and mirrors of Marketing/sales yadda

Not just with Agents but also Lenders, Inspectors ect...forgetting it is THIER Business Transaction, Financial Obligation and responsibility to watch out for themselves....
A little less trust the experts just cause they say they are experts and a tad more buyer beware & awareness might be a good thing imo

Shop Smart ;)
  • October 20 2013
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The most common and costly error I have found is Buyer's indecisiveness.
They find a house they like, but are sure there's something a little better just around the corner and by the time they have exhausted all the available houses, they come back to the original which is then already under contract.

A second error is assuming that all houses in pre-foreclosure, as some filters show, are available for sale.  They think they can search better than their Realtor.  Not so.
  • October 20 2013
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Profile picture for SoCal Engr
"How can the most common buyer errors be avoided?"

The absurdly simple answer is "don't buy".

If I were to try and boil it down, I believe the most common buyer error is "being overly in love with the idea of ownership". Somehow, ownership, in-and-of-itself, will provide stability/wealth/name-your-goal. The goal of ownership overtakes and subsumes the process of ownership.

I have bad credit, but want to buy...
I have little money saved, but want to buy...
I need a co-signer, but want to buy...

Ownership involves more than many people are prepared for. The buying process itself involves more than many people are willing to prepare for. The "preparation" runs the gamut - from finances to life goals. And, underlying this all, is the need for self-education.

All too easily set aside and "entrusted to others" when all one can see is "ownership".
  • October 20 2013
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I seem to think that a common buyer error is finding a house they love but continue to keep looking.  In our market inventory is real tight, so when they see it and love it, I suggest they submit an offer.  Sometimes they dawdle and want to continue to look as they are afraid something better will come on the market. 
  • October 20 2013
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Profile picture for Michael Mei
Buyers often forget that they have closing costs/escrow fees which can amount to 1.5% of the purchase price so many times that dont; have the cash to cover that and roll it into the loan. That is an expensive way to pay for the closing.
  • October 20 2013
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The most common buyer error would be not using a Realtor.  There are so many ways a buyer can be duped, cheated or sued if they don't know what they are doing.  Most buyers don't understand real estate contracts completely, don't know what the buyer and seller legal requirements are and don't realize some of the ramifications of their actions (code violations, past insurance claims, title errors, etc).  To avoid possible problems, use and experienced Realtor.
  • October 24 2013
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Pick a Realtor who you feel comfortable working with- Buyers agent will work to guide you through the process of home ownership- I do counsel my buyers on items that could have potential in hurting their position in the buying process for example -Now that the buyers are under contract it  is so tempting to go out and start buying for the new house, this is something you will want to avoid until you have the keys to your new home- opening new accounts and withdrawing large sums of money could effect the DTI ( debt to income ratio) or an explanation to the underwriter. 

Good luck!
  • October 24 2013
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The most common error is probably not hiring a Realtor, without having a professional looking out for your best interest in the transaction it is easy to get overwhelmed by the process and make very simple mistakes along the way that can be very costly.

A recent example, the buyer was not represented and wrote their own purchase agreement. put several thousand down as earnest money, they did not include a contingency in the contract for approval of financing and were denied the loan and lost their earnest money deposit.  

Another big one is asking for a ton of things in a purchase agreement addendum thinking that the seller has to do these things, in reality, unless they are desperate to sell, they don't have to agree to any of them and can ignore the addendum completely causing the entire contract to terminate and the buyer losing a home they truly are in love with over something that may only cost them a couple hundred dollars to deal with themselves once the home is theirs.

There are many things that can be done to protect your interest in the transaction that can be overlooked by someone who doesn't do this every day! Best of luck on your search!
  • October 24 2013
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Profile picture for sunnyview
Most common error is hiring the wrong agent.
  • October 24 2013
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Profile picture for Bkgdc
Other than picking a good REALTOR, the worst mistake you can make it not to listen to him.  This is especially true with the lending process.  You should use a lender that your REALTOR knows.  

You are just one person to the lender.  You may never send the lender any future referrals.  If you are not happy, oh well. 

If the REALTOR is not happy then the lender will listen.

  • October 24 2013
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I agree with sunnyview "Most common error is hiring the wrong agent"
  • October 24 2013
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I would say the most common buyer error is not being realistic in what they can purchase.

When buyers are not realistic they can miss out on a great deal, and waste their time as well as the realtors time.

Another error, is not trusting and relying on their realtor, but allowing friends for information and buying advic

Kawain Payne, Realtor
  • October 24 2013
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Profile picture for Dalberth Group

The most common errors for Buyers, in my opinion, are usually related to diligence re: the property.  Get yourself a knowledgeable Buyer's Agent (usually no cost to the Buyer as they are paid by the Seller) and, when appropriate, a good inspector and attorney.

The purchase of a home is usually one of the largest transactions a consumer will do...  Buyers need to treat it accordingly. 

  • October 24 2013
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Profile picture for SteadyState
The most common error is to talk to a Realtor before you do your own homework to understand real estate, the market you wish to buy, and the real estate process.
In fact the most common buyer error may in fact be hiring a Realtor instead of a RE Attorney.
  • October 24 2013
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The worst mistake buyers make is finding their dream home before they talk to a lender and find out they cannot afford their dream home.  This mistake leads to frustration and disappointment.  Getting pre-approved first is the best way for buyers to begin their journey.
  • October 24 2013
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