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- Business Insider asked real-estate agents around the US about what it’s really like working in their industry.
- We asked agents about the biggest mistakes people make when trying to buy a home.
- Some common mistakes buyers make include making lowball offers, and getting distracted by the "flashy" details and ignoring the actual quality of a home, according to agents.
- One agent said too many people hold out too long for the "perfect" home and then regret not buying one they liked early on.
- Visit Business Insider’s homepage for more stories.
Business Insider asked real-estate agents around the US about what it’s really like working in the industry, what they wish they could tell their clients, and the biggest mistakes they see people making when trying to buy a home.
Some of the common mistakes buyers make are making lowball offers, holding out too long for the "perfect" home, and getting distracted by the "flashy" details and ignoring the actual quality of a home.
One agent said too many people hold out too long for the "perfect" home and then regret not buying one they liked early on.
Here are the 13 biggest mistakes people make when buying a home, according to real-estate agents.
1. Assuming every home’s price is negotiable.
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Jared Barnett, a Compass agent who works with homes between $2 million and $5 million in New York City, told Business Insider the biggest mistake a buyer can make is assuming every home has a negotiable price.
"Sellers use different strategies when pricing their home," Barnett said. "Sometimes it is priced with room for negotiations, but other times it’s priced to get multiple offers, potentially going over the asking price."
Barnett said it’s not uncommon for a buyer to lose the first couple of properties they make an offer on because they’ve underbid when the home is priced to sell.
2. Getting distracted by the "flashy" details and ignoring the actual quality of a home.
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"It’s important not to be seduced by the icing on the cake," Brian K. Lewis of Compass, who sells $2 million to $10 million homes in New York City, told Business Insider. "Ignore the icing and focus on the substance of a home — the quality of the construction and the level of finish."
Buyers should pay attention to the lot and/or the building and thoroughly inspect the property, he said.
"Many homes can be ‘botoxed’ to look pretty on the outside," Lewis said. "Focus on the bones and structure — a deep dive will reveal the truth."
David Tortolini agreed that many buyers pay too much attention to superficial factors.
"They focus too much on flashy things, like granite counters and stainless steel appliances, that often have many other problems or are in a bad location, and bypass homes that have been very well taken care of and are in a great location but aren’t updated," Tortolini said.
3. Not putting down the largest down payment possible.
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Alan Hedrick of Compass, who deals with homes in the $2.5 million range, said one of the biggest mistakes a home buyer can make is not putting down a large enough down payment.
"Putting a larger down payment could significantly reduce your monthly spending on your mortgage," Hedrick said. "It’s okay to ask for outside help, like a gift for a down payment if it will help you obtain homeownership faster."
See the rest of the story at Business Insider
See Also:
- For $2.2 million, you can buy a 2-bedroom Manhattan apartment — or a 37-acre private island off the coast of Italy
- The Greenwich Village townhouse where the late Malcolm Forbes threw extravagant parties for CEOs and celebs just sold for $20 million — take a look inside.
- I toured 2 of NYC’s most notoriously expensive areas for real estate, and they offered a very different look at the city’s wealth
SEE ALSO: 10 things real-estate agents wish they could tell you — but won’t
Source: Business Insider – kwarren@businessinsider.com (Katie Warren)