Dont Make These Common Buyer Mistakes

Sometimes homebuyers take on the project of finding the home they like without knowing exactly what they need or want. This can make for a random and frustrating search that often unnecessarily wastes time. On occasion, some people think they can even outsmart sellers while negotiating the purchase price, while in reality they might be getting a worse deal altogether especially in our current market where we are seeing more and more multiple offer home sales.

I’ve compiled a short list of the most common mistakes homebuyers tend to make. They are:

  • Viewing all of the homes that become available, instead of focusing on the ones that are in their price range
  • Not knowing about all available financing options
  • Not completely understanding the subtle art of negotiating price
  • Over or under-estimating the actual value of specific home amenities
  • Choosing inspectors who may not be fully qualified
  • Not requesting all of the appropriate inspections to be made
  • Failing to consider all aspects pertaining to the new home, including the location (and reputation) of schools and other services
  • Falling prey to exorbitant fees and outrageous rates
  • Falling for the belief that bigger is better, thereby putting oneself in a precarious situation and buying the largest or most expensive property

My job as a realtor is to guide you through the process and help you identify pitfalls and opportunities. I can take the element of surprise out of the equation and put you in a stronger position so you can make an informed decision.

So don’t take chances and run the risk of making a costly mistake. Call or e-mail me anytime and let me help you find the home of your dreams.

$26 billion Foreclosure Settlement Could Mean Relief for Underwater Homeowners

If you are underwater on your home or were foreclosed upon between 2008 and 2011 there could be some relief coming your way according to an article from CNNMoney today. Federal and state officials have agreed to a $26 billion settlement of potential state charges of home seizures made without required paperwork and improper foreclosure practices based on robosigning by the five largest lenders in the country – Bank of America, JP Morgan Chase, Citigroup, Wells Fargo and Ally Financial.

About $17 billion will be used to reduce the principal for underwater homeowners and could mean a reduction for as many as 1 million people. While this is a start, the average reduction would be about $17,000, so might not go a long way in assisting those upside down on their mortgages. In addition, about 750,000 homeowners who are current on their mortgages will be able to refinance their loans to take advantage of the current record-low interest rates. About $1.5 billion will also go to homeowners foreclosed upon between 2008 and 2011 and who meet other criteria. They will be eligible to receive $2,000 for charges of robosigning.

Negotiations are underway to expand the current settlement to nine other servicers, potentially expanding the settlement to $30 billion.

It is important to note that even though a homeowner may accept settlement from the bank, it does not inhibit their ability to file criminal prosecution charges against the bank.