Home Buying in Phoenix>Question Details

Trulia Phoen…, Home Buyer in Phoenix, AZ

What are the most common problems home buyers cause for themselves?

Asked by Trulia Phoenix, Phoenix, AZ Fri Dec 7, 2012

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Answers

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Electing to purchase property without a home inspection. By "rolling the dice" these individuals too often come up short and live to regret it.
1 vote Thank Flag Link Sat Dec 8, 2012
Here are a couple:

1. Failing to provide all requested paperwork to your Loan Officer in a Timely fashion. This could lead to a delay in closing and might result in you paying a per diem or risk losing your Earnest Money deposit.
2. Buying a home without doing your due diligence eg. Home inspections.

Let me know if you have any questions about the home buying process, will be glad to help.
1 vote Thank Flag Link Fri Dec 7, 2012
Most of the common problem of a new buyer is that they suffer just because lacking of knowledge and by ignoring the current market condition. Some times they choose wrong agent, which creates problem. So they must choose one who works for them and understand their financial position. Purchase home without inspection also made them suffer.
0 votes Thank Flag Link Wed Dec 12, 2012
Buyers are uninformed on what the market is doing, therefore they are not making sound offers on the sellers property which is causing their offers to be out bidded and not considered a serious offer by the sellers.
0 votes Thank Flag Link Tue Dec 11, 2012
At the moment I do not think they are seeing the market turning. Too many of them are wondering why they are not getting their offers accepted. The sellers adjusted to pricing homes according to market sales. Buyers are a bit behind in trying to offer much lower than the homes are selling for.
0 votes Thank Flag Link Tue Dec 11, 2012
Not understanding the market that we're currently in. Even after an agent will "highly recommend" that a buyer not make a particular offer, buyers continue to think that they can come to town and low ball offers to sellers and then don't understand why they lost the deal. While pricing is moving upwards, overall it is substantially down since 2005/2006 and buyers don't understand they are still getting a good deal.

Or they want to low ball an offer AND ask for closing costs credits. The closing cost credit is NOT working in this market. Whatever you're reading from wherever you come or whoever you're talking to in your hometown does not reflect the market in the metro Phoenix area.

Inspection issues. After an inspection was completed for one of my clients, they had their out of state contractor come up with the amount it would cost to fix "all" items the inspector pointed out and then asked for a $12,000 price reduction on a $150K home. The surprisingly answer by the seller was NO. Take it or leave it. You're getting a good deal...Seller has lost $110K since 2005.

When a home is in good condition and has a few "minor" issues that would cost under $400 to fix but you provide the seller a list of 10-15 insignificant items that you must have fixed but don't realize the property has cash backup offers and you've been a pain in the "you know what" since the seller accepted your offer, they are just waiting to see you go and reject your 10-15 items in which case, you lose the property.

Using Trulia or Zillow as the absolute pricing for a property, regardless of what the "neighborhood" comps show.
0 votes Thank Flag Link Tue Dec 11, 2012
Being over confident that they can do without the help of professionals; Realtors, Home inspectors....
0 votes Thank Flag Link Mon Dec 10, 2012
The most common problem I see with new home buyers are they will low ball a house but they won't do what it takes to get a loan using a program that gives them up to 30,000 for assistance most of the time never to be paid back. And it only takes a few hours more than a standard FHA. That to me is shooting your self in leg!
0 votes Thank Flag Link Sun Dec 9, 2012
I knew when consumer Realtor web sites came out it was the death of us. Now I wouldn't call it "death" but it sure doesn't help. It tends to take us as Realtors more out of the loop. Then the consumer (our clients), go to these sites and fill themselves up with misinformation. And sometimes they don't seem to understand we know what we are talking about when we present them with the real evidence.

No, the home is not Active and it has not been active for some 30+ days.
No, I don't know why that web site doesn't show AWC.
No, that home is in Whitman, not Mesa.
No, I don't know why that web site listed it in Mesa when it's really in Whitman.
No, that house is not $650,000. I confirmed with the Listing Agent the price had not dropped from $799,000 to $650,000. Geez, for $650,000 I'm buying that house!
No, I don't know why that web site said it was $650,00 then it "disappeared". Black helicopters stole it?
Yes, I know that Seller only paid $220,000 for it in 2009 and now wants $375,000 for it. Yes, I have tax records like you do. I see your stuck on what he paid for it and I just spent an hour doing comps for you and see that $375,000 is not out of bounds. Now do you want to watch on your web site for the property to go "pending" with somebody else or do you want to be the one that makes it happen?
No, I don't believe that the other guy that made that sale happen at $375,000 was a "moron".
I also see the listing agent noted "multiple offers received"!

OK...I'll get off of my soap box now!
0 votes Thank Flag Link Sun Dec 9, 2012
There are several things that buyers do to hurt themselves. As others have mentioned, doing their own search on different websites can set them up for disappointment. Another main thing that hurts buyers is finding a home, applying for a loan, then going out and financing a new car, furniture, appliances, etc. A lot of people don't realize that banks will often re check credit right before closing. Doing all of this financing could hurt your chances of getting the final approval on the loan, not to mention hurting your debt to income ratio.
0 votes Thank Flag Link Sat Dec 8, 2012
The biggest problem I have is with buyers conducting their own searches on consumer web sites such as Trulia, Zillow and Realtor.com. Listings take 24-72 hours or longer to migrate to these sites, and by then many homes are already under contract. Buyers find it difficult to resist doing their own search when they see 100 active listings on Trulia but only 20 using the MLS search I have set up for them. The problem is, 80 of the 100 listings on Trulia are AWC/UCB or PENDING whereas the 20 properties in the client's MLS search portal are all ACTIVE and available.
0 votes Thank Flag Link Sat Dec 8, 2012
I actually have a buyer's thou shalt not list that I hand out to my buyer clients. It a list of things they shouldn't do while in the purchase process such as, not handing in their loan documents, buying a new car before closing, co-signing for another person, an so on. I try to inform them as much as possible so that there are no problems.
0 votes Thank Flag Link Sat Dec 8, 2012
The most common problem I see in prospective homebuyers is a lack of education about the current market conditions. Now that most homes are seeing multiple offers and selling for above asking price, it's not the time to be as picky as we were when it was a buyers market. I have Clients placing offers on homes sight unseen knowing they still have the 10 day inspection period to back out if the home has unforseen issues.
Almost every buyer I have worked with lately has expressed regret that they didn't offer more on the home they lost to a higher bidder.
I have a listing in Phoenix, AZ for only $107,000.00 and I'm receiving offers in the mid $90,000. The home I sold 2 months ago in the same area was listed for $107,000.00 and after 3 days and 14 offers, sold for $120,000.00.
Happy Hunting and don't be discouraged. Your home is just around the corner so find a straight shooting Realtor who has your best interest in mind-Like me.
0 votes Thank Flag Link Sat Dec 8, 2012
Finding a home they like, but not committing thinking a better home is just around the corner in the same price range.
0 votes Thank Flag Link Sat Dec 8, 2012
All of the comments listed below are great as well as accurate "problems home buyers cause for themselves".
Another common problem or mistake made by homebuyers is prior to closing is making a purchase that either impacts their credit and/or their debt-to-income ratios..
0 votes Thank Flag Link Fri Dec 7, 2012
I think using the public search sites to come up with what they think is the value. This causes offers to be too low and they feel cheated if they can't get the home for that value. They need to listen to their agent and look at the "real" closed homes for comparisons.
Another problem is to expect a used home to be in the same shape as a new home. They need to be reasonable when asking for repairs. I try to have them put themselves in the opposite parties shoes and see what they would feel is reasonable.
0 votes Thank Flag Link Fri Dec 7, 2012
Looking beyond their means and having unrealistic expectations.

it's really important to know what you qualify for and stay within that budget.

Buyers have the ability to align themselves with a real estate professional that can help guide them through a buyer consultation so problems that are self created are not surfaced.
0 votes Thank Flag Link Fri Dec 7, 2012
I would say the most common problems are as follows:

Not getting pre-approved for a mortgage
Submitting low offer
Submitting offer with cash but are finance offer - hard money loan
Not conducting a property inspection
Offering more than appraised value

Please let me know if I can be of any additional help with your real estate needs.

Sincerely,


Sean Heideman, Broker / Owner
Position Realty
Office: 480-213-5251
0 votes Thank Flag Link Fri Dec 7, 2012
There are no more homes in Phoenix that are $50,000, 5 years old, and 1500 sq ft. So many buyers call me and ask to buy these types of homes and they are all gone, gone, gone...
0 votes Thank Flag Link Fri Dec 7, 2012
I would say one of the most common is submitting an offer to low.
0 votes Thank Flag Link Fri Dec 7, 2012
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