Avoid the 8 Biggest Mistakes

Avoid the 8 Biggest Mistakes Steamboat Buyers Make

1. Hire the Right Broker

Real estate law is dictated in Colorado by the Real Estate Commission. Colorado real estate laws require an agent to disclose the type of agency relationship that exists between a real estate salesperson and a buyer. Unfortunately, this disclosure is not commonly publicized and usually presented by the sales person only after a buyer is sitting down in their office, and they have already begun discussing a property the salesperson has listed. To protect themselves, buyers should first seek a broker who can unconditionally advocate their interests, including helping them negotiate the lowest price and best terms. This can only be accomplished by seeking the services of an Exclusive Buyer's Broker, and the essence in which I have dedicated my real estate practice.

2. Get Pre-Approved for Financing

Many naive buyers cost themselves time and money by locating a property first, then applying for a loan. Savvy buyers get pre-approved by a lender before the search begins. Going to the bargaining table pre-approved is like having cash in hand, and sellers may be more amenable to a lower offer if they know the buyer is already qualified. And part of the negotiation could include a quicker closing period, which can also be beneficial in buyer negotiations. Furthermore, if there are competing offers, sellers will most likely take the one that has financing in place. Buyers should also know what they can (and can't) afford beforehand, as looking for a property in too high of a price range is a waste of time, while looking for a property too low in price may eliminate the perfect match.

3. Review HOA Documents

Nearly every property is subject to some type of homeowners association (HOA), dictating how the property can be used and enjoyed via a set of HOA documents. These need to be carefully reviewed, as they could be in direct conflict with the very reason a buyer would want to purchase the property. Furthermore, if the association has annual meetings, request and review the HOA meeting minutes from the last two years, as well as the HOA budget. This gives the buyer a good idea of the pulse of the association, points of contention, and what potential capital improvements (additional costs) there could be in the near future. I have established a number of HOA's in the past and can help you look out for matters to be concerned about.

4. Professionally Inspect the Property

Buyers may want to skip the property inspection to save a few dollars in acquisition fees, but getting a qualified inspector to inspect the property before closing is good insurance that there will be no hidden surprises after closing. The inspectors I recommend do not "rubber stamp" inspections. They have earned my recommendation because they inspect the property from my client's perspective.

5. Negotiate Everything

Most buyers think the only thing to negotiate is price. Although that is an important aspect of the purchase, it is not the only one. Earnest money, financing costs, closing costs, possession, upgrade allowances and many other items can be negotiated. So you can make the most informed purchase, I will point out every aspect of the process with you that may be negotiated.

6. Don't Hesitate to Make an Offer When Finding the Right Property

In a seller's market, it is important to make an offer as soon as you identify your property. Waiting a few days for further investigation may give other buyers time to step in ahead of you. I have seen this numerous times in my career. I can draft an offer to tie the property up while providing ample time to conduct additional research until you become more knowledgeable with the property, and if what we find out is unacceptable, will allow you to cancel the contract without penalty. I have never been considered a high pressure agent. I'm here to help you get the property you desire in the time that you want and the ease you expect.

7. Hire a Steamboat Lender

Buyers may initially want to go with a lender they have used before, only to find out at the eleventh hour they cannot make the loan because the property type is out of their specialty. Whether buying a condominium, single family home, vacant land or ranch, you'll want to work with a lender who specializes in Steamboat properties. As your exclusive buyer broker, I will be able to recommend a local lender(s) that would best match your personal situation.

8. Openly Communicate with Your Broker

Depending upon the type of agency relationship buyers have with their broker, this may be difficult. After all, you certainly don't want to disclose your personal situation to someone who could possibly have the property of your dreams listed and represent the seller. However, no conflict-of-interest would exist when working with an Exclusive Buyer Broker. The more a buyer can openly discuss their needs, desires, motivations and personal circumstances with their broker, the better they will be able to work together as a team and locate the right property and craft the right offer. This type of open communication can only be accomplished by establishing a client-agent relationship between a buyer and a broker who promises he/she will not represent anyone except their client. This is the type of service I offer my clients.

Whether you are a long-time Steamboat Springs resident, a seasoned out-of-town real estate investor, or a first time homebuyer, there are many aspects to consider when making a real estate purchase. Many mistakes can be made when buying real estate that can cost a buyer time and money; or worst of all, a buyer ends up buying a property that doesn't fit their needs! As an experienced Exclusive Buyer Broker I am pleased to provide my client dedication, market knowledge and negotiation prowess to get you the property you want, within the timeframe you desire and the ease you will appreciate.