Welcome to this week's edition of Insider Real Estate Secrets Revealed! (Educational Course for Home Buyers and Sellers)
We hope you have learned a tremendous amount from our articles and we look forward to providing more educational material to help you on your home buying or selling journey. In this edition of Insider Real Estate Secrets Revealed, we are focusing on 5 Deadly Mistakes people frequently make when moving to a larger home. We'll discuss what YOU can do to avoid falling prey to these traps. So, sit back, relax, and enjoy this edition.
5 Deadly Mistakes to Avoid When Moving Up
Moving to a better neighborhood, larger home, or new house can be a fun and exhilarating experience. But before you get to excited, or too far into your home-buying journey, you need to take into account the complication you may face when moving up.
One of the more common complications you may run into is the dilemma of owning two homes at once. Even worse than this, is becoming temporarily homeless because of an improperly timed sale of your current home. On top of this, you still have to worry about how to obtain the best financing.
In this report, we'll cover these and other important issues.
Critical Mistake #1 - Choosing the Wrong Real Estate Agent
When moving up, most people have one Real Estate Agent who handles both of their transactions - the sale of their current home and the process of finding a new one. Because of this, the Real Estate Agent gets a chance to 'double-dip'. You will usually pay them commissions not just on one transaction, but two!
With so much of your hard-earned money changing hands, it pays to shop around for the best agent. The best agent is not just the cheapest one. You should look for a combination of experience, price and personality. If you don't feel 100% comfortable with the Agent, what makes you think potential buyers will?
Usually, your lending institution can refer you to a highly qualified Real Estate Agent. If you would like to receive a list of recommended Real Estate Agents for this area, visit our website.
Critical Mistake #2 - Not Selling Your Current Home First
As a rule of thumb, it's usually better to sell first. If you don't, you could run into a number of issues. If you purchase first, you could be at a major disadvantage when negotiating the sale of your current home, thereby accepting a lower price than you had hoped for just to meet a purchase deadline.
We recommend putting a contingency clause in your sales contract that specifies a specific amount of time between the sale and moving out. This will give you plenty of time to find a new home once the sale of yours is complete.
Critical Mistake #3 - Not Becoming a VIP Home Buyer
Have you ever opened up a home-showcase magazine, seen your dream home, and called for more info, only to be disappointed when you find out that the home was too expensive or already sold? If so, you have experienced the frustration that accompanies trying to search for the perfect home without the proper tools. Now, more and more people are giving up the old 'hit and miss' approach to home buying and taking advantage of the NO-COST VIP Home Buyer Service.
Here's how it works. You fill out a profile form detailing exactly what type of home and neighborhood you're looking for, what amenities you want, and what your price range is. Then, an automated computer system searches all new listings in your area day and night. When it finds a home that meets your criteria, it sends you an e-mail alert with complete details about the home, allowing you to do everything from the comfort of your home or office.
For more information on the NO-COST VIP Home Buyer Service, visit our website. The button is on our homepage, on the right.
Critical Mistake #4 - Not Coordinating Your Closing Dates
When moving up, you will be involved in two major Real Estate transactions simultaneously. You could easily have over a dozen people involved, including Real Estate Agents, Lawyers, Title / Escrow Companies, Mortgage Companies, Home Inspectors and others. We recommend working very closely with your Real Estate Agent to ensure a smooth closing transaction.
Critical Mistake #5 - Failing to Obtain a Mortgage Pre-Approval
In some areas, a seller may not even deal with you until they can verify that you can actually afford to purchase their home. To them, a pre-approved buyer is essential. And just because you currently own a home, doesn't necessarily mean you will automatically qualify for a new mortgage.
50% of the time, homeowners sell their current home first. Then, they go about obtaining financing and looking for a new home. This decision is not recommended. You should ALWAYS get pre-approved for your financing BEFORE you sell you current home. Imagine selling you current home and then finding out you are not approved for a new mortgage. You might think you are immune, but you better think twice, because this financial nightmare is fairly common.
