As I was reviewing my email I  ran across a blog that caught my attention. The topic was about buyers on how they can and sometimes do ruin their own real estate deals. As I read through the blog I remembered some of my buyer clients that almost did just that.

Even before most buyers are contacting an agent to help them buy a home, they try to educate themselves via the internet but sometimes forget the basic first step to get started. The mortgage pre-qualification.

Not knowing what they can afford in the beginning they begin looking at homes online that are priced higher than their financial ability and sooner or later they become disappointed when they discover they cannot have the home of their dreams. With so many homes now listed as a short sale and REO’s (bank owned), a pre- approval is a must to submit an offer.

With the market as it is today some want to buy a castle for the price of a shack and try to low-ball an already lower than market value home. They will have their offer either not countered or not accepted. When they find what they are looking for and do not make an offer because they think they can get a better deal with the next house, house hunting now turns into a marathon and not a sprint. Eventually they will find themselves under the gun, having to move and just buy anything, just to be buying something. Many times this might lead to a never ending money pit of repairs and updates. Then there are the ones who expect an undervalued home to have absolutely no issues and expect it to be in move in condition. They are surprised that the carpet is not clean, not their color choice, that some of the appliances are missing, some drywall has to be repaired, or maybe that the roof needs replacing within less than a year.

So how to avoid all of the heartaches:

• Let’s get pre-approved! Know what you can truly afford and what you might have to bring to the table at the time of closing. Please do not confuse this with pre-qualification.
• Make a list of what you are looking for in a house. What is most important and what can you live without when it comes down to it.
• What commute are you willing to have? Are you wanting to move to a rural area or are you a city dweller?
• Are you willing to do some repairs? And how much? Or do you want a move-in home.

These are all decisions that should be made before you start looking for your home. The hunt will go a lot faster and smother.