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	9 Deadly Homebuying Sins
	By Kent Gipson

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• offering a contract above the true market value
• failing to bid on a great value because you don't know the market
• avoid this trap by asking for a comparative market analysis
• get some help to avoid overpaying or underbidding

• too big or small for future needs
• a fixer-upper needing too much work
• too far from work or too close to traffic
• in the wrong price range
• avoid this trap by defining your present and future needs
• know what location is most suitable
• what level of fixing up is most comfortable
• how much you can afford for everyday life after moving in

• some last-minute problems can delay closing
• such as interest rate or points other than you agreed to
• can endanger the locked-in interest rate or entire sale
• avoid this trap by staying away from a too-close closing
• get a 60-day lock-in for your interest rate
• give yourself as much time as possible to close the sale

• some lenders add questionable charges at closing
• items that were not show on the "truth-in-lending" form
• "underwriting fee," "loan disbursement charges," "courier fees", etc.
• markups on court documentation fees
• avoid this trap by asking for a list of charges at application
• some fees can be negotiated down or waived if you complain

• during final walk-through, some serious defects may surface
• avoid this trap by doing a careful inspection of the house
• consider an independent home inspector to check inside and out
• have the inspector report any items needing attention
• also ask the cost of fixing them and repercussions if left undone
• contract settlement should be contingent upon inspector's report

• some items prorated at settlement (taxes and association dues)
• some have to be paid a few months ahead (hazard insurance)
• avoid this trap by asking for figures a day or two in advance
• double-check the charges and ask any questions
• if settlement date changes, so do some of these pre-paid costs

• contractual hang-ups can delay settlement
• repairs not made, items that fail to convey, etc.
• to avoid this trap, walk through with the list of agreed-upon items
• check them off one by one
• set up an escrow fund for items that fall through the cracks

• a survey may show lot boundaries that differ from the property plat
• a survey may show a neighbor's fence is over the line
• a survey may show that zoning regulations have been violated
• avoid this trap by asking to see the seller's original survey
• go over any additions or variations with your real estate agent
• have your new survey done as early as possible

• a title search may reveal encumbrances on the property title
• tax liens, easements, leases, or an undisclosed co-owner
• avoid this trap by having the title search done early
• buy owner's title insurance to protect your investment

 

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