With the tax credit about to expire at the end of the month, I have been getting lots and lots of calls from first time homebuyers who want to be able to take advantage of the $8,000 tax credit!  So I thought this would be a great time to list what I consider to be my Top 10 List of Mistakes that many first time homebuyers make.  I welcome any comments you may have and any additional ones you think should be added to the list!  (By the way – this list is in no particular order!!!)

• Not acting quickly enough and losing the home they want to write an offer on!  In today’s market, there are still homes that are getting multiple offers.  All homebuyers should keep in mind that if the home is priced very well for the area, there is a strong possibility that there will be multiple offers on it.  And sometimes taking a day or two or a weekend to “think” about it can cost you the home that you have fallen in love with! 
• Using the wrong Realtor!  In today’s real estate market, where there are many challenging transactions and you are dealing with foreclosures, short sales, “as is” sales, etc. a first time homebuyer should be using a Realtor who can assist them with their transaction!  This means that the Realtor has to be familiar with the ins and outs of a short sale transaction, for instance, and how this type of transaction can impact you, the buyer!
• Not considering a home’s resale potential in the future when buying it today!  You will not be in that home for the next 30 years or so – in all likelihood you will be selling it.  So when you are looking at a home, you should look at whether there are things about the house and neighborhood that could impact your ability to sell the home in the future!
• Not using the proper loan product!  You will most likely not be paying cash for your home, and will need a loan.  Today’s mortgage market has changed significantly  over the past year or so!  You want to make sure you have a lender on your team who knows the best mortgage product for you-whether it is an FHA loan, a VHDA loan, grant programs, etc. 
• Not understanding the foreclosure process!  There are many foreclosures out there in the real estate market, and there will be more to come this year!  If you are considering a foreclosure property, you need to understand the process and how long it can take and what loan products are the best for the particular home you are looking at!
• Not understanding the short sale process!  Many banks are now starting to use short sales as a way to try to get homes sold without going into foreclosure.  But the short sale time frame can be very cumbersome and frustrating for many buyers so understanding the process can help you decide whether a short sale is the best for you!
• Not understanding the local real estate market!  Richmond’s real estate market is very different than the real estate market in, say, Miami Florida.  But the national media always talks about the real estate in general terms.  So understanding your local real estate market and trends will go a long ways towards making sure that you can get the home of your dreams!
• Getting confusing advice from too many people!  Many first time homebuyers will turn to friends and family for advice & support, and they should because these are trusted people!  But if the friends and family do not live in the area and are not familiar with the real estate market in Richmond, VA, they may give some misleading advice on how to structure offers or other advice and this may end up confusing the first time homebuyer!  Trust your Realtor that you have chosen to help you sort out the confusing advice that you are getting so that you can make the right decision for you!
• Not having your own Realtor!  Many first time homebuyers may think that they can do this on their own, so they research everything on the internet, look at sites such as Realtor.com and Trulia and Zillow to come up with a list of homes to see and then use the Realtor who has the house listed for sale to help them purchase the house!  But by doing this, you are losing out on the benefits that you get from having your own Buyer Agent, who will keep your confidences and who can honestly advise you about the house you are looking at.  When a listing agent is also representing you, the homebuyer, and an issue comes up in the course of the transaction, then who is that agent going to represent – you or the seller?
• Not planning on being in your home for the next 5 years!  This real estate market is not the same as it was in the early 2000’s where you could buy a house and sell it a few years later and take your profits and move on.  Now we are in a period where you need to stay in your home for at least 5 years or more in order to let your home appreciate so that you can pay the costs of the sale and have enough money to put down on your next home! 

So, if you are planning to buy your first home, educate yourself about the process, hire your own Buyer Agent who you have trust in to do the right thing by you, hire a Lender who is going to provide you with the right loan for your situation and educate yourself about the Richmond area home market!  If you understand the process and the market, you will find a home that you will enjoy living in for the next 5 years or more!  And if you have any questions, as always, don’t hesitate to let me know.  Thanks.