As a homebuyer, you should know that certain professionals can cost you money if they make a mistake during the transaction.
There are three professionals in a real estate transaction than can cost a home buyer thousands of dollars if they make a mistake.
The first is the lender. If they don’t listen to your needs, they could outfit you with the wrong loan product, which can affect your closing costs and interest rate. It might not seem like a big deal if your interest rate is 5% instead of 4.75%, but over a 30-year term, that difference can amount to as much as $50,000.
To get a competitive interest rate, interview multiple lenders until you find one who suits your needs and is a good fit personality-wise. A good lender—like the ones we work with regularly—can actually save you money during the closing.
The second professional who can cost you thousands is the home inspector. It’s important to hire a home inspector during any type of real estate transaction, but if, for example, they don’t notice a water intrusion near a window and that problem doesn’t get fixed for many years, it could cause a mold infestation and attract termites. Fixing this problem could cost hundreds of thousands of dollars. A good home inspector will be able to spot this issue early so you can fix it before it becomes a larger issue.
The last professional who can cost you thousands is the real estate agent. A lot of buyers assume they can save money during a home purchase by going straight to the listing agent, but that’s not true. All buyers need representation. Think of it as though you were going to court—you need a lawyer by your side to represent your best interests. On top of that, the seller pays your agent’s commission, so it doesn’t cost you a thing to hire one.
Without the right agent, you won’t know what to look for when looking at homes, you might end up shopping for homes in an area you don’t like, and it’s less likely you get set up with a great inspector. If you end up buying a home in an area you don’t like, you’ll have to sell in a few years and try finding one you do like all over again. By that time, you’ll have to deal with all the costs of selling the home, and the home you may have wanted in the first place might cost way more. By hiring the right agent from the get-go, you’ll save yourself the trouble.
If you have any more questions about this topic or you’re thinking of buying or selling a home, don’t hesitate to reach out to me. I’d love to help you.
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