Avoid Real Estate Buying Mistakes!

Over the past several years, the game and the rules of buying real estate have significantly changed. Today, the affordability and the ability of buying real estate in places like Scottsdale, Phoenix and throughout the Phoenix Valley Metro Area have changed. Unfortunately, the practices of lending have changed due to the significance of high foreclosures and short sales. They result the major losses in property values. Of course, the regulations have changed. Yet, the buyer is looking get the most of his or her purchasing value. Yes, the opportunities are there. When you are in the buying mode, you need to avoid significant mistakes.

Here are seven most common mistakes you need to avoid in buying real estate:

• Holding onto your home before buying real estate:

You must sell your home first! In this current market it may take longer to sell a home than you expect.  The one thing is, the lending process these days are strict, and there’s the possibility the loan could fall through because the buyer did not qualify to buy your home. Carrying that second mortgage is a major responsibility while you attempt to sell your sell your current home.

• Not addressing your Credit Score before buying real estate:

Lending practices and credit markets are tighter than ever these days. If you are looking for a lower interest rate, or most likely, getting a loan, you must have excellent credit score. If you have poor credit score, like a 580 score, then there maybe additional help for you. You can check your score at no additional costs.

• Skip the prequalification and pre-approval process before looking for real estate:

Not getting prequalified is a mistake of which you could be looking at homes well beyond your loan approval budget. Getting the preapproval will set you in a position to narrow your search based on your needs and the location you can afford. Plus, it’s a time saver for you and me as your buyer’s agent. Talk to a trusted lender and get pre-approved.

• Not knowing when to stay and when to walk away:

Yes, buyers have more power than ever in the negotiating process. Don’t fear to make a lower offer. Don’t be afraid to make a mistake of walking away because of a few thousands of dollars. Think of this way. A few thousands of dollars could translate to less than $100 a month on the mortgage. Not much money at all.

• Not knowing the total costs involved in buying real estate:

Many buyers, especially first time buyers need to know and understand the costs associated in buying a home. They include closing costs, title insurance, and lawyer fees as well as ongoing costs such as property taxes, homeowner association dues, utilities, and yard maintenance. Ask me or a mortgage representative to provide you with an average amount of additional closing costs so that you can work with them in your budget.

• Signing contracts with contingencies in real estate:

This could cost you big bucks if you make this critical mistake. Do not sign a contract allowing sellers stay in the homes for an extended period of time. You do not want to run the risk of losing your interest rate if you allow them to have extentions of staying in the home. If a deal falls through, then you are back to square one to search a home again. Have me explain the contract to you and explain any contingencies that are involved so you get a good understanding of what will occur.

• Not purchasing real estate protection plan:

When you purchase your home, you never know what problems may arise. Get at least a one year protection plan, or these problems will cost you big.

In conclusion of avoiding mistakes in buying real estate:

So buying real estate can be an exciting time of your life, but I want it to keep your anxiety levels down. If you are seeking real estate in Scottsdale, Phoenix, and throughout the Valley Metro Area, check out some of these homes:

Scottsdale (DC Ranch) Real Estate:

Showing properties 1 – 5 of 54. See more Dc Ranch community real estate.
(all data current as of 12/9/2011)

1. $399,000 : 20704 N 90th Place, Unit 1029, Scottsdale
   
   3 beds, 2.50 baths

   Home size: 2,074 sq ft

   Lot size: 2,355 sq ft

   

2. $425,000 : 18650 N Thompson Peak Parkway, Unit 1043, Scottsdale
   
   3 beds, 2.50 baths

   Home size: 2,430 sq ft

   Lot size: 2,375 sq ft

   

3. $799,000 : 9827 E Buteo Drive, Scottsdale
   
   4 beds, 3.50 baths

   Home size: 3,924 sq ft

   Lot size: 10,259 sq ft

   

4. $1,590,000 : 9810 E Thompson Peak Parkway, Unit 814, Scottsdale
   
   3 beds, 4.50 baths

   Home size: 4,600 sq ft

   Lot size: 42,334 sq ft

   

5. $539,000 : 9273 E Canyon View Road, Scottsdale
   
   4 beds, 3.00 baths

   Home size: 2,563 sq ft

   Lot size: 5,513 sq ft

   

Listing information deemed reliable but not guaranteed. Read full disclaimer.

Scottsdale (Oldtown) Real Estate:

Showing properties 1 – 1 of 1. See more Old Town Scottsdale community real estate.
(all data current as of 12/9/2011)

1. $314,900 : 7770 E Camelback Road, Unit 3, Scottsdale
   
   2 beds, 2.00 baths

   Home size: 2,377 sq ft

   Lot size: 4,404 sq ft

   

Listing information deemed reliable but not guaranteed. Read full disclaimer.

Phoenix (Desert Ridge) Real Estate:

Showing properties 1 – 5 of 15. See more Desert Ridge community real estate.
(all data current as of 12/9/2011)

1. $413,069 : 23321 N 41st Street, Phoenix
   
   4 beds, 2.50 baths

   Home size: 3,207 sq ft

   Lot size: 11,047 sq ft

   

2. $449,000 : 4018 E Adobe Drive, Phoenix
   
   5 beds, 3.00 baths

   Home size: 3,507 sq ft

   Lot size: 10,405 sq ft

   

3. $195,000 : 5450 E Deer Valley Drive, Unit 1012, Phoenix
   
   2 beds, 2.00 baths

   Home size: 1,246 sq ft

   

4. $369,391 : 4314 E Hashknife Road, Phoenix
   
   3 beds, 2.00 baths

   Home size: 2,306 sq ft

   Lot size: 6,900 sq ft

   

5. $374,790 : 4312 E Knudsen Drive, Phoenix
   
   4 beds, 2.00 baths

   Home size: 2,528 sq ft

   Lot size: 7,261 sq ft

   

Listing information deemed reliable but not guaranteed. Read full disclaimer.

Phoenix (Biltmore) Real Estate:

Showing properties 1 – 5 of 5. See more Biltmore community real estate.
(all data current as of 12/9/2011)

1. $275,000 : 5747 N 18th Street, Phoenix
   
   3 beds, 2.00 baths

   Home size: 1,527 sq ft

   Lot size: 7,540 sq ft

   

2. $345,000 : 5136 N 31st Place, Unit 647, Phoenix
   
   2 beds, 2.00 baths

   Home size: 1,319 sq ft

   Lot size: 1,315 sq ft

   

3. $494,999 : 2544 E Missouri Avenue, Phoenix
   
   5 beds, 3.00 baths

   Home size: 2,996 sq ft

   Lot size: 8,377 sq ft

   

4. $550,000 : 3125 E Claremont Avenue, Phoenix
   
   3 beds, 3.00 baths

   Home size: 2,879 sq ft

   Lot size: 8,272 sq ft

   

5. $625,000 : 3114 E Claremont Avenue, Phoenix
   
   4 beds, 2.50 baths

   Home size: 2,509 sq ft

   Lot size: 8,133 sq ft

   

Listing information deemed reliable but not guaranteed. Read full disclaimer.

Cave Creek Real Estate:

Showing properties 1 – 5 of 293. See more city of Cave Creek real estate.
(all data current as of 12/9/2011)

1. $217,500 : 4628 E Roy Rogers Road, Cave Creek
   
   4 beds, 3.00 baths

   Home size: 2,564 sq ft

   Lot size: 6,422 sq ft

   

2. $1,150,000 : 7926 E Grapevine Road, Cave Creek
   
   3 beds, 2.00 baths

   Home size: 3,062 sq ft

   Lot size: 6.83 ac

   

3. $215,000 : 6512 E Windstone Trail, Cave Creek
   
   3 beds, 2.00 baths

   Home size: 1,710 sq ft

   Lot size: 1.16 ac

   

4. $224,900 : 4619 E Laredo Lane, Cave Creek
   
   4 beds, 3.00 baths

   Home size: 2,132 sq ft

   Lot size: 5,625 sq ft

   

5. $224,900 : 4944 E Roberta Drive, Cave Creek
   
   3 beds, 2.50 baths

   Home size: 1,963 sq ft

   Lot size: 5,290 sq ft

   

More Phoenix Real Estate News

Barn and Pasture

Washington Horse Property Search

I learned a lot about keeping horses and what to look for in horse property on a recent tour around Thurston county with a client.  This lady’s priorities were to find established fenced pasturage (constructing new fences is expensive), a barn for shelter, and trails she could ride on directly off the property.  She likes to keep her horses out in the pasture rather than in stalls.  She doesn’t want to clean out stalls.  Her horses used to live in North Dakota and would prefer to stand outside in 3 feet of snow rather than stay in the barn.  She scarcely cared what the house looked like.  Her focus was on the land.

We saw a wide variety of properties over two days: fixer uppers, beautifully updated houses, a former 40 acre cattle farm with a gigantic barn (cow people keep their land in better condition than horse people, she says), an outdoor riding arena where the owner had dumped $150,000 worth of sand (my client prefers to ride on trails, she didn’t want to ride in circles in an arena), and the most unusual thing we saw was a property where they were keeping wolves behind 8 foot high fences (“Don’t go in the pens”, the owner cautioned).  Full disclosure: the largest animal I’ve been personally responsible for is a white rat (“Rosie”).  But I can organize a horse property tour for you, write a valid contract, and help you get a good deal by starting negotiations from a low starting point.

I realized that the MLS doesn’t provide an easy way to search out properties already set up for horses.  So I set up a web page expressly for that purpose:

Washington Horse Property Search Page

See also another client’s rehab project of a manufactured home with pasture and barn on 5.5 acres in Graham:

Remodeled Graham Manufactured Home

Barn Stalls

Beautiful White Wolf

More Seattle Real Estate News