Checking The Pulse Of The Kansas City Real Estate Market

I’ve seen a ton of web sites with “tips” for First Time Home Buyers and most of those sites are a complete waste of time. I don’t think a Kansas City First Time Home Buyer needs told to “choose a home that best fits their needs”. I saw that as the #1 recommended tip on one First Time Home Buyer site. Seriously, who buys a home without taking that into consideration?

Another of my favorites I’ve come across is to “make sure your agent is working with no more than a couple of buyers at one time to ensure they have time to assist you”. I couldn’t disagree more because any agent who’s working with only a couple of buyers is probably not an agent with much production and experience. Rather than insulting your intelligence with some silly advice, I’ll instead give you a list of mistakes I’ve actually seen home buyers make – or I’ve stopped them from making – over the years…

1. Being too picky – I’ve seen buyers miss GREAT homes because they were picky about things that, in the big picture, shouldn’t have caused the home to be eliminated from consideration.

2. Worrying only about the payment when getting Pre-Approved for a home loan – the loan costs can easily be more important than the payment if you’ll only be staying in the home a couple of years.

3. Thinking they can get a better deal by not using a buyer’s agent – a buyer’s agent will save you more than the 3% buyer’s commission and a seller and listing agent aren’t simply going to hand that 3% over to you for not having an agent.

4. Not considering the utility bills – a home is larger than an apartment and utility bills could be double, triple or more than a buyer is prepared for.

5. Ignoring area property values – buyer’s can come out ahead by buying a more expensive home in a subdivision with solid appreciation rate versus buying a home for significant less in a subdivision with falling property values.

6. Financing anything (i.e. a car) after going under contract but prior to closing – this can drastically change the borrower’s income-to-debt ratios and cause a lender to change their mind about providing the mortgage loan.

7. Not factoring in you’ll have to buy a refrigerator, washer, dryer, mower, garden hoses, etc. – there are many things supplied in a rental home that you’ll be responsible for when owning a home.

8. Failing to consider ongoing expenses of owing a home – when that air conditioner goes out and the home needs repainted, has money been put into savings for these types of repairs?

9. Running a weak offer up the flag pole to check a seller’s response – making a low-ball offer, putting down very little earnest money and asking for the moon can cause a seller to arch their back and lead to a buyer getting a worse deal.

10. Wearing rose-colored glasses – too many buyers fall in love with the cosmetics (i.e. pottery barn paint colors) to the point they start convincing themselves they can ignore the big crack in the foundation wall.

Posted by Jason A. Brown