The 10 Dumbest Mistakes Smart People Make When Buying or Selling a Home – and How to Avoid Them

BUYERS

Mistakes	Prevented By
1. Not knowing how much they can afford to pay for a house before they     make an offer.	Get pre-qualified for a mortgage from a Lender, so you know in advance exactly   how much you can afford.
2. Not finding out in advance who the real estate agent represents.	Asking your realtor. Most people think their agent is working for them. But unless the agent is working as your buyer representative, he/she represents the Seller.
3. Not realizing that the wrong mortgage can cost thousands of dollars   in unnecessary interest & taxes.	Consulting with a mortgage consultant, accountant, and/or financial planner before making a final decision on which mortgage to choose. CPA's can tell you the long-term effects on your income.
4. Not discovering hidden defects before buying a home.	Hiring a professional to conduct a pre- purchase home inspection.
5. Not knowing how debt can affect their ability to buy or refinance a home.	Asking your mortgage professional to help you review and repair your credit file in advance.

SELLERS

Mistakes	Prevented By
1. Setting their asking price too high because of personal need or emotion rather   than fair market value.	Consult with a professional real estate agent. He/she can assist you in pricing your home correctly.
2. Failing to "showcase" their home by highlighting the best features	Thoroughly cleaning, repairing, and readying your home for showing before   you put it on the market.
3. Signing a listing contract with no way out.	Asking you real estate agent if you can cancel your listing agreement at any time, no questions asked, prior to signing the contract or agreement.
4. Choosing an agent for the wrong reasons. For example, listing a home with the agent who works for the most popular company.	Selecting a listing agent with the best marketing plan and track record.
5. Not knowing their legal rights and obligations.	Consulting a knowledgeable, trustworthy professional who understands the technical and legal aspects of a real estate transaction. Contracts are legally binding. Neglected details can wind up costing sellers thousands of dollars.