10 Rookie Home Buyer Mistakes to Avoid

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I have to say Brian sounds like the same kind of jerk you see on all the HGTV Property Virgin type shows. First of all, my guess is that that his Maryland starter house probably cost 200k, and that a standard 6% commission indeed is 12,000. However, half of that goes to the listing broker and is split between that brokerage and the listing agent. And the other half, or 6,000 goes to the selling broker, and this agent is getting probably about half of that, or 3,000. Out of which that agent pays his own Social Security tax (which is exactly double what gets taken out of your paycheck for Social Security Brian because agents are independent contractors and have to pay both halves) and the gas for his car when he drove all over with you looking at houses, and he also pays for his MLS subscription, his realtor board membership, his errors and omissions insurance, his electronic keys, maybe a couple percent of it to his broker for some other fee they stick him with... and Brian is unhappy he didn't get a gift? And a FEW YEARS later he thinks it's the agents fault that he might need a furnace? A furnace can pass an inspection with flying colors and still BREAK DOWN YEARS LATER. Could you not see the badly splintered deck, or did it splinter over the years you had it? Did you maintain it? Stain it every year? Oh, and have you ever heard of earplugs? I agree this article is helpful past Brian's whining, because there are alot of new buyers out there just like him, for whom it is not obvious that things get old and need upkeep and you have to spend money to buy and maintain things.

Susan of CT 8:23PM November 30, 2012

many people are turning toward tiny home or mobile living which seems pretty interesting
http://www.cooksauto.com

Steve Cook of WA 1:39PM August 14, 2012

I'm also a real estate agent and disagree that Ayle of CA disliked the article. It's excellent and will direct my first time buyers to it even though I discuss these things at our first meeting. The realtor does sound sort of like a jerk, but I must point out that Brian should assume some responsibility. The realtor may have not said anything about the street because he assumed that Brian could see that it was busy. The inspector should have caught the window or perhaps it was even broken after the inspector and realtor had done their inspections. Maybe the realtor was negligent (I have to work with some of them) but Brian does sound like one of these souls that prefers blaming everyone, but himself. I've been fortunate to work with people whose relationship has forged into a long lasting friendship. Anyways-great article. PS Ayle (You forgot expenses: fees, classes, license renewals, office expenses, E&O insurance, gas & auto maintence, just to name a few) is also right about how much money we pocket. My husband has computed some of my deals at less than minimum wage. But I love helping people find their next home.

Debbie of CA 8:48PM July 17, 2012

Not surprising to see a comment from a Realtor who doesn't like the story. Imagine that! As a home inspector, this article is spot on and all first time homebuyers should heed its advice.

Mike Chamberlain of IN 8:00AM December 21, 2011

I just found this site and now have subscribed.
I was actually surprised that home inspection was so far down the list, but I may be partial since I am a home inspector.
There are several questions you should ask when hiring an inspector, I have a list of questions for you here http://www.acsillc.com/inspector-selection/
Please don't take this as an advertisement, look at the information. I would be happy to share some of my blog material here as well.

Scott Warga of AZ 8:31PM December 19, 2011

Great article. We are planning to buy our first house after 24 years of marriage. Very informative for someone like us.

Debra of FL 11:38AM December 18, 2011

The tips listed are helpful to all buyers, but as an active Realtor myself, I think the opening of the article is misleading. Perhaps, I am sensitive, but I am rather bothered that "Brian", the home buyer seems to blame everything on his real estate agent. Agents can make recommedations as to which home inspector to use, but they do not ultimately choose them for the buyer. Besides, we are not inspectors-we are agents and the contract specifies this! Agents facilitate a transaction between a buyer and seller-we are not a part of the transaction. A buyer is responsible for his own due diligence before he makes the purchase-including, but not limited to, noisey streets and broken windows! A noisey street is a compromise to a price and it bothers some more than others. Besides, how would an agent know what time "Brian" wakes up in the morning or how light of a sleeper he is. Obiously, the main thing that "Brian's" agent did wrong was not explain any of this to him. So that, I will agree, is the agent's fault.
I am also offeded that a buyer EXPECTS a gift at the end of a transaction. Not all agents give gifts. Especially in this economy. Besides, that $12,000 that "Brian" thinks his agent made, was probably split 40/60 with his broker with an additional 25% going to taxes! People are so misinformed when it comes to what RE agents actually take home!
Thanks for the article, but I wish there was a caveat as to why "Brian" is misinformed to begin with.

alyle of CA 12:53PM December 17, 2011