agent who works on commission may not have your best interests in mind is problematic. And this mistake becomes generational – getting handed down from other buyers who are not experts or not up to speed with the evolving market like a skilled agent is,” notes Ehrlichman. It’s also predictable that many will opt to get a mortgage at the bank they are already using: commonly a convenience decision. “But it’s best to take the time to shop around, speak with at least three lenders, and compare the terms, processes, and local references they share carefully,” Ehrlichman suggests. Too many inexperienced buyers also execute their purchase and sales agreement without fully understanding the legal effect of that contract. “That agreement often contains dozens, if not hundreds, of terms and conditions that are easy to gloss over. But the buyer should read it in full and ask the necessary questions to understand each provision and Real Estate Prep LLC, points to if in doubt, consult with an atAvoid these mistakes when searching other common faults first-timers torney,” recommends Heller. make. When it comes to a homeownwhich isn’t always advisable,” process,” says Heller. “Often, “Many blindly agree to work ers’ insurance policy, it pays to explains Matt Ehrlichman, the buyer was overwhelmed with the experts that their real parse through it carefully. CEO of Porch.com based in during the transaction and estate agent suggests without “Many of my buyers trust what Seattle. “It was also interestdidn’t get the proper representa- doing their homework. They their insurance expert says ing to find that 80% of buyers tion.” don’t invest in the knowledge without fully understanding didn’t even seek mortgage advice Geoffrey Zureikat, a principal needed to buy and maintain a the fine print. Read through it from a financial advisor; instead, broker with Compass Real home. As a result, they don’t thoroughly, ask questions about most looked to their families for Estate in Chicago, says it’s understand the various nuanything you don’t understand, input and how to approach a somewhat normal and underances that go into the purchase and know what you’re paying mortgage.” standable for slipups to occur, process and aren’t fully prepared and covered for,” Zureikat says. Ben Heller, real estate litigaalthough they can be costly and financially for the transition Consider investing in real tion attorney for Los Angelesregrettable. from renter to owner, either,” estate educational classes and headquartered Schorr Law, says “Buying a home is usually the says Ross. first-time buyers make blunders biggest financial decision many One particular area of concern programs, too – especially if a lot more often than you think. make in their lifetime, so inher- is that first-timers tend to trust your lender or real estate agency offers them at no charge. “Almost every day, our firm ently, there will be some anxiety, family and friends more than receives calls from a first-time and feeling stressed can lead to an experienced real estate agent “It’s important to invest in your home buyer who may have bad decisions,” Zureikat says. with whom they may not have home-buying journey and learn as much as you can,” suggests made a mistake during the Joshlyn Ross, a home buying as close of a relationship. home shopping and purchase Ross. consultant with Houston-based “This misconception that an
Shopping for your first home? By Erik J. Martin CTW Features t’s no surprise that first-time homebuyers are often eager and excited to zoom through the purchasing process and claim their first property. The problem is that fervor, coupled with a lack of experience, can lead to mistakes, resulting in buyer’s remorse. But with the right approach and preparation, you can avoid common errors and sleep better at night, knowing you’ve completed the transaction with proper due diligence. Porch recently polled homeowners who bought in the last year and found that first-timers were over three times more likely to feel unprepared purchasing a home than repeat buyers. They
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September 25, 2020
were also more apt to find their properties via word-of-mouth, for-sale signs, newspaper home listings, and family and friend recommendations than they were to consult real estate agents and online home listings. Among all buyers, nearly 49% committed to a mortgage with a lender they were already banking at; three in four confessed that they didn’t completely understand the terms they were signing, and almost 37% didn’t fully comprehend their homeowners’ insurance policy or read that policy fully. “I was also surprised to see that, roughly, only 22% of buyers shop around for the best financing option. Instead, most people choose to finance their homes through their primary lender,
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