Both buyers and sellers often make mistake in New York when purchasing or selling real estate property. Making a mistake can be costly. You don't want to make them. In this two-part blog, we first identify mistakes buyers commonly make and then mistakes sellers often make.
Read them. Learn them. And don't make them.
Buyer Mistake No. 1: Failure to Identify Hidden Costs
You want to buy a new home in New York. That's awesome! But don't let the excitement overwhelm you so that you don't see clearly. There are often more costs in purchasing a new home than the asking price. You need to make sure you know what they are because they can easily add up. Examples of hidden costs include but are not limited to:
- escrow fees;
- appraisal fees;
- property taxes;
- inspection fees; and
Buyer Mistake No. 2: Failure to Negotiate
You found the property you want to purchase and are worried someone else may try to snag it, so you take it – as is and without negotiating the price. Or maybe negotiating just isn't your thing; you don't like confrontation even though it doesn't have to involve it. Failure to negotiate the price, however, is a mistake. And it's not even the price that can be negotiated, but all of the above (and more) fees associated with a sale.
Buyer Mistake No. 3: Failure to Identify a Bad Contract
If you purchase on your own or use a real estate agent, it is still your responsibility to read the purchase contract. If you are a first-time buyer, you may not know what to look for. That said, even if it is your second or fifth home, you may not be well-versed in legal terminology and unable to identify terms unfavorable to you.
Getting into a bad contract is, well, bad. Only in some cases will you be able to get out of it. For instance, if the contact was financially deleterious or unfair, but the bar to prove the same is high.
Buyer Mistake No. 4: Failure to Understand Verbal v. Written Agreements
For some people, an agreement is an agreement, regardless if it is written or oral. But in terms of the law, it makes a difference. It can also make a difference when you purchase a new home. The seller may promise you something, but if it is not in writing, it could be your word against his.
Buyer Mistake No. 5: Failure to Foresee Future Value
We can't always see into the future, but we should be able to – via data and other means – determine if the value of your home will increase over time. Even if the property will be your new home, it is still an investment and, as such, you want it to increase in value. A real estate attorney can help you determine what the value could be 5 years or even 15 years down the road.
All these things and more are common mistakes buyers in New York make when engaging in a real estate transaction. To make sure you don't fall for the same, contact an experienced and resourceful New York real estate attorney today.