10 Deadly Mistakes Buyers Can Make When Purchasing a Home

1. Limiting Your Search To Open Houses, Ads, or The Internet: Many of the properties listed on the Internet and in magazines have already been sold. Contact a Realtor to get a fresh look at the market and what is available. They have up-to-date information that is unavailable to the public and are the best resource to help you find the home of your dreams. Click here to get an automated search setup that keeps you updated on new listings and price changes 4 times a day.


2. Choosing A Real Estate Agent Who Is Not Committed To Forming A Strong Business Relationship With You: It is extremely important to choose a professional that is dedicated to serving your needs before, during and after the sale. A good agent will want to create a client relationship for life.


3. Making An Offer On A Home Without Being Pre-Approved: Pre-approval will make your life much easier, so speak with a lender. Their specific questions in regard to income, debt, ect., will help you determine the price range you can afford. They can also let you know what loan programs best meet your needs. This is the foundation to your whole search. If you don't have a lender, your Realtor will have some reputable lenders they can recommend.


4. Not Having A Home Inspection: Don't try to save on a home inspection by skipping it all together. Make sure you have a qualified inspector inspect the property before you buy it. It could end up saving you a fortune in the end.


5. Thinking There Is Only One Perfect House Out There: Buying a home is a process of elimination, not selection. New properties hit the market daily, so be open to all possibilities. Ask your Realtor for a comparative market analysis comparing similar homes that have recently sold or are still on market.


6. Not Considering Long-Term Needs: It is important to look to the future and see if the home would suit your needs 3-5 years from now.


7. Not Examining Insurance Issues: Purchase adequate insurance. Advice from an insurance agent can provide you with answers to any concerns you may have.


8. Not Buying A Home Protection Plan: This is basically a mini insurance policy that usually lasts one year from the close of escrow, although longer periods are available. It usually covers basic repairs you may encounter and can be purchased for a small fee. Talk to your Realtor to help you find the protection plan you need.


9. Not Knowing The Total Costs Involved: Early in the buying process, ask your lender or Realtor for an estimate of closing costs. Title company fees should be considered. Pre-pay responsibilities such as Homeowner Association fees and insurance must also be taken into account. Your Realtor should review your settlement statement with you prior to closing.


10. Not Following Through On Due Diligence: Buyers should make a list of any concerns they have relating to issues such as; crime rates, schools, power lines, neighbors, environmental conditions, ect. Ask the important questions before you make an offer on a home. Be diligent so that you can have confidence in your purchase.

Advantages of Buying Down

The “empty nest” scenario has come to life with the departure of your youngest child. What is a person to do now that the house seems so enormous? Many people look at the prospect of downsizing to a more manageable house. This does not necessarily mean you are going to move into a studio apartment. There are many options available to you at this point. Colorado Springs and Monument have many areas and options that cater towards downsizing.

Make it a point to consult with two important professionals… your real estate agent and your tax planner. Your real estate agent will be able to meet with you and create a plan to meet your needs. They will be able to tell you the value of your current home and the availability of alternative houses in your preferred areas. Now that the nest is empty, you may want to be closer to certain amenities, or you may want to find something with a floor plan that meets your new needs.

There are many important advantages to buying a smaller home or condo, such as lowering your property taxes, simplifying property maintenance, and generating cash which can be put into income producing investments. The tax laws should also be considered which allow capital gain exclusions whether you buy up to a more expensive home or buy down to a less expensive one.

I Am Back!

It has been a while since I have posted anything. There is plenty going on in the Colorado Springs and Monument Real Estate markets to talk about though. The weather is warm and houses are moving despite what you hear on the news.

The volume of homes sold has gone down from this time last year and building permits for new construction are down by 40%. We are currently in a buyers market where homes are selling if they are priced correctly. It is imperative that sellers price their home competitively with what's on the market.

I look forward to providing more insight on what is going on in the market along with helpful tips and resources on Colorado Springs and Monument real estate. Please post comments on this post with what topics would be most helpful for your needs.