“Top 10” Buyer Traps, (and How to Avoid Them)

" A systemized approach to the home buying process can help you steer clear of these common traps, allowing you to not only cut costs, but also secure the home that’s best for you."

No matter which way you look at it buying a home is a major investment. But for many homebuyers, it can be an even more expensive process than it needs to be because many fall prey to at least a few of the many common and costly mistakes which trap them into either:

• paying too much for the home they want, or
• losing their dream home to another buyer or,
• worse; buying the wrong home for their needs.

A systemized approach to the home buying process can help you steer clear of these common traps, allowing you to not only cut costs, but also secure the home that’s best for you.

TOP 10 BUYER TRAPS

This important report discusses the 10 most common and costly of these homebuyer traps, how to identify them, and what you can do to avoid them:

1. BIDDING BLIND OR PICKING THE WRONG CONTRACT PRICE

What price should you offer when you bid on a home? Is the seller’s asking price too high, or does it represent a great deal. If you fail to research the market in order to understand what comparable homes are selling for, making your offer would be like bidding blind. Without this knowledge of market value, you could easily bid too much, or fail to make a competitive offer at all on an excellent value.

Finding the house is almost the easy part, MetroStar® excels on the price negotiation by using our historical bank involvement to justify and document why the offer we make -- is truly the price they should accept. Pricing your foreclosure contract offer is an art of threading-the-needle, you have to have the total and relevant information obtained by your Exclusive Buyer's Broker, -- so you don't miss the target. Information and cash are king. When you truly find your dream home, that is the most important factor, and then, #2. How do you price a contract offer so you don't lose what you have found and attempt to pay the lowest possible price. That is what MetroStar® does best, hitting the pricing target you have set -- more times than not.

2. BUYING THE WRONG HOME: “ONLY CONSIDERING “FORECLOSURES”

What are you looking for in a home? A simple enough question, but the answer can be quite complex. More than one buyer has been swept up in the emotion and excitement of the buying process only to find themselves the owner of a home that is either too big or too small. Maybe they’re stuck with a longer than desired commute to work, or a dozen more fix-ups than they really want to deal with now that the excitement has died down. Take the time upfront to clearly define your wants and needs. Put it in writing and then use it as a yard stick with which to measure every home you look at.

MetroStar® believes: "pick your best Dream Home first, and, then let us price it down to a bargain." Too many people go for the "bargain" first, and not the "best home" first, and then let the price be taken down by a professional. The MARKET has become as one, with every segment subject to the same downward price pressures -- so you purchase at the lowest possible price. MetroStar® helps you each step of the way. We show you ALL available segments: Bank-Owned, Foreclosed, Pre-Foreclosed, Silent Market, MLS, and Relocation Bargains – You will have access to all segments of homes to buy that meet your needs.

3. NOT HAVING A CLEAR TITLE

Make sure very early on in the negotiation that you will own your new home free and clear by having a title search completed. The last thing you want to discover when you’re in the back stretch of a transaction is that there are encumbrances on the property such as tax liens, undisclosed owners, easements, leases or the like.

MetroStar® orders the Title as soon as possible after the home is under contract.

4. INACCURATE OR MISSING CRITICAL SURVEY INFORMATION

As part of your offer to purchase, make sure you request an updated property survey which clearly marks your boundaries. If the survey is not current, you may find that there are structural changes that are not shown (e.g. additions to the house, a new swimming pool, a neighbor’s new fence which is extending a boundary line, etc.). Be very clear on these issues.

MetroStar® clients have for years have always had a full Boundary Survey. Now the Feds and Lenders require it. SPECIAL CUSTOMER EXTRA for MetroStar® clients: Mid-Points along the two side lines and the rear property line; the property line will be staked and marked with Surveyor’s Plastic Sealed Driven Pipe; performed at no absolutely additional charge for MetroStar® Clients. Really handy when you fence.

5. UNDISCLOSED SELLER OR JOE-THE-HANDY-MAN FIX-UPS

Don’t expect every seller to own up to every physical detail that will need to be attended to. Both you and the seller are out to maximize your investment. Ensure that you conduct a thorough inspection of the home early in the process. Consider hiring an independent inspector to objectively view the home inside and out, and make the final contract contingent upon this inspector’s report. This inspector should be able to give you a report of any item that needs to be fixed with associated, approximate cost.

MetroStar® Clients have another trained set of eyes over-looking the entire deal.

6. NOT GETTING MORTGAGE PRE-APPROVAL FIRST

Pre-approval is fast, easy and free. When you have a pre-approved mortgage, you can shop for your home with a greater sense of freedom and security, knowing that the money will be there when you find the home of your dreams.

MetroStar® Clients have access to some very unique Private Mortgage Bankers.

7. CONTRACT MISSES AND SELLER NON-COMPLIANCE

If a seller fails to comply to the letter of the contract by neglecting to attend to some repair issues, or changing the spirit of the agreement in some way, this could delay the final closing and settlement. Agree ahead of time on a dollar amount for an escrow fund to cover items that the seller fails to follow through on. Prepare a list of agreed issues, walk through them, and check them off one by one.

MetroStar® Clients have the advantage of a seasoned professional to guide you.

8. HIDDEN COSTS AND UNDISCLOSED FEES

Make sure you identify and uncover all costs - large and small -far enough ahead of time. When a transaction closes, you will sometimes find fees for this or that sneaking through after the "sub"-total - fees such as loan disbursement charges, underwriting fees etc. Understand these in advance by having your lender project total charges for you in writing.

MetroStar® Clients are assured that we receive no other types of compensation.

9. RUSHING THE CLOSING WITHOUT PROFESSIONAL REVIEW

Take your time during this critical part of the process, and insist on seeing all closing paperwork at least the day before you sign. Make sure this documentation perfectly reflects your understanding of the transaction, and that nothing has been added or subtracted. Is the interest rate right? Is everything covered? If you rush this process on the day of closing, you may run into a last minute snag that you can’t fix without compromising the terms of the deal, the financing, or even the sale itself.

It is just too easy to miss a critical step. MetroStar® provides its clients a hold-your-hand, and very detailed step-by-step “Road-Map To Closing Checklist.”

10. NOT HAVING THE PROPER BUYER REPRESENTATION

Choose an exclusive buyer’s agent. No other type of agent represents only your interests.

Please, don't try to do this yourself - Sorry, it doesn't work! How do I know? For the last two decades, I have represented a lot of banks prior to 2008; the "work-out specialist of the banking industry" for many of the banks' foreclosure projects. The Internet-Empowered Consumer will benefit from having an Exclusive Buyer's Broker. The internet and the paradigm shift to Buyer Agents that specialize as True-Advocates for the Buyer are becoming the driving forces in the real estate transactions of today. However, the sad facts are in the last year almost half of buyers have gone to the closing table without an advocate. **i.e. 49% were not represented by a Fiduciary-Level agent that represented and protected the BUYER. Going into a closing without representation is just plain nuts! Why? Because the Seller or the Seller's Agent have no responsibility to represent any of your interests! Buyers need to be represented!

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