By Melissa Dorman, April 21, 2020
When buying a home, be careful to avoid these common pitfall that can sabotage your home-buying process.
1. Working with multiple REALTORS®
Some buyers think it is efficient to work with multiple agents to find the right home. They believe that their home search will be shorter and they’ll have more assistance if they use multiple agents. The reality is that working with multiple agents can cause a great deal of frustration and confusion and ultimately hurt the buyers. Interviewing, getting to know, and committing to one agent is always the best way to start your home search. You’ll build rapport with the agent, and the agent will get a clearer idea of what you are looking for and be better able to assist you. As you continue to work as a team, you gain trust in your agent and your agent can fine-tune your search, having a good sense of your preferences and criteria.
2. Not having the home inspected
Amazingly, many home buyers want to skip the home inspection in order to save on costs. This is a critical mistake that can be costly, even devastating. Even on newly constructed homes, a home inspection is important to find any issues to have them repaired before purchasing. In older homes it is even more necessary, as home inspectors go top-to-bottom in the home and can alert you to hidden and important issues that would otherwise go unnoticed. Imagine buying a home and then learning that the sewer line needs to be replaced and that the roof is leaking! Instead, learning of this beforehand allows you to address these problems before they become your problems. Then your agent can negotiate and either make price adjustments, ask for credits from the seller, have repairs done, or terminate the transaction. Ignorance is not bliss.
3. Using the wrong lender
Just as important as choosing the right agent is choosing the right lender. Local banks outperform large national banks in service, availability, knowledge of local fees, and flexibility. Also, local banks and loan officers are often available on nights and weekends, when you need them the most, whereas larger national banks likely wouldn’t be. With a local lender, you can sit down face-to-face with an individual, get to know them, and often even call their cell phone after hours. Local banks will be more involved in the community and will work hard to earn your loyalty and trust.
4. Being cheap on home insurance
Don’t be fooled, insurance providers are not all created equal. Buyers who spend time researching and comparing insurance providers will be rewarded when an accident or a natural disaster happens. Cutting corners on your home insurance policy could leave you crippled at a time when you’re already devastated and need to file a claim. Investigating a carrier isn’t as daunting as it sounds; these companies can be found on the Better Business Bureau and other insurance forums. Look at their financial rating in with the state, practices for paying claims, and financial stability. It’ll be worth it in the end.
5. Not having a final walk-through
One of the critical steps at the end of the buying process is the final walk-through inspection. Its purpose is to ensure that the home is in the same condition, with nothing missing, and no new damage or surprises. Many REALTORS® tell stories of items being stolen from the home right before closing, break-ins, water damage, etc. Once a buyer closes on a property, there is little that can be done about these issues. The final walk-through should be done right before closing, or even on the way to closing.
Having an excellent team in place will help you avoid these costly mistakes and will ensure that your transaction goes smoothly as possible. Your team should consist of a top agent, home inspector, and lender. Having top professionals work for you will help you avoid mistakes that many buyers unwittingly make.
Melissa Dorman
Broker | OR & WA
She/Her
Ten years ago, Melissa was living in a slum in Kolkata, India, helping over 200 women escape sex trafficking by providing alternative work at a social business.
It was there she discovered her passion for financial education as a means of empowering people to move out of poverty. After graduating from UCLA with a Masters, Melissa spent 5 years working as a Social Worker; assisting clients facing homelessness, in jail, or at a psychiatric facility.
As much as she loved the work, imagining saving for retirement on the meager salary of a social worker was becoming grim. That's when Melissa discovered "passive income." In no time, she fell in LOVE with real estate as a vehicle for wealth. Soon after, Melissa began locating off-market multi-family properties to purchase through creative financing strategies and win-win opportunities. Two years into investing, Melissa quit her day job as a Social Worker to become a full-time broker and investor. Initially, she was drawn to people in difficult circumstances, so she developed extensive experience assisting families facing foreclosure, short sales, and probate. Melissa is well versed in helping her clients overcome complex real estate challenges.
Currently, Melissa is teamed up with Super Broker, Yascha Noonberg at Living Room Realty. Together they assist clients to achieve their real estate dreams, including how to strategically buy and sell a personal residence to maximize profits. Far from the slums of Kolkata, her greatest passion now is empowering other working professionals to develop passive forms of income through buying multi-family properties in Portland.
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- T: 503-567-4697
- melissa@livingroomre.com
