Buying a home is one of the biggest purchases of your client’s life, and they want to be cautious that they don’t make any mistakes that they’ll regret later on. Here are the top four most common mistakes made when buying a home, along with tips on how to prevent your clients from doing them or how to recover if they have already made them!
Mistake #1: Not Getting Pre-Approved
The biggest mistake made by homebuyers and is the first thing they should do if you plan on buying a new home!
How to Prevent: Easy, get them pre-approved! By getting pre-approved, they’ll be able to search for homes that are affordable for them, while also putting them in a strong negotiation position when you make an offer.
Mistake #2: Not Using a Qualified Agent
If they’re not sure why they should use a buyer’s agent, have them go here. Encourage them to ask friends, family or their loan officer for feedback on why an working with an agent is in their best interests.
How to Recover: Let them know it’s never too late to use you. Even if they’re already at contract, you can help with all the legal and negotiation aspects.
Mistake #3: Not Getting a Thorough Inspection
Getting a thorough inspection is the only way they’ll know they have real knowledge about the house.
How to Prevent: Refer a licensed home inspector. They take the emotion out of inspecting a home and give them a real, critique about the home they’re thinking to purchase.
How to Recover: If they didn’t hire a home inspector, have them get a good home warranty in case any issues do arise in the future.
Mistake #4: Focusing on Wants, Not Needs
This mistake is usually made by first-time homebuyers, but can happen to even the most experienced homeowner.
How to Prevent: Encourage them to make a list of must-haves and refer to it when they’re house hunting. Make sure it is a list of needs, not wants.
How to Recover: If they’re in negotiations and realize they made this mistake, try using provisions of contract to either get out of the deal or fix the issues before they close.
Nick Marascia is the branch manager for Guaranteed Rate in Dallas. He can be reached at: