Purchasing a home in the Hollywood Hills is a huge deal. There are a handful of home buying mistakes a homebuyer can make when purchasing there first Hollywood Hills Home For Sale. This blog post will discuss some of the slippery slopes that can make your home purchase less than perfect, and potently a nightmare. These deadly mistakes can cost you a tremendous amount of money. Take a deep breath, here we go! We’ll do this together.
Here are 7 Hollywood Hills Home Buying Mistakes
1. Not Understanding Agency
A ‘Real Estate Agency‘ is a completely misunderstood topic by many people, and can create a variety of problems if not fully understood. Basically, agency is how a real estate agent works for you and will interact with you in a real estate transaction. It is a “legal relationship” you have with your real estate agent. One big mistake many homebuyers make, is writing an offer for a home at an open house directly from the listing agent.
The Hollywood Hills Listing Real Estate agent, owes the seller fiduciary responsibility.Their job is to secure the highest and best offer price possible on the property… their duty is to the seller, NOT you the homebuyer. They are to legally give every advantage to their seller even at your expense.
A Hollywood Hills Buyer’s Real Estate Agent on the other hand owes you the homebuyer fiduciary responsibility. Every Hollywood Hills homebuyer has the right to use a buyer’s agent. If you follow none of the below pieces of advice. Make sure you listen to me here.
2. Not Getting Pre-Qualified Before Looking at Hollywood Hills Homes For Sale
Looking at Hollywood Hills Homes for Sale is fun. Visiting open houses is fun as well. Talking about money or lack thereof is not! Getting a proper pre-approval letter will create tons of aggravation and heartache from the beginning of your real estate property search.
A proper pre-approval will ensure you are looking at the right homes, let you look with confidence and can even be used as a negotiating tool.
You will also be having dialogue about programs and interest rates with your mortgage broker prior to finding a home. There will be no surprises by the time you submit your mortgage application on a specific home. Our preferred mortgage broker is Joe Tishkoff, from Skyline Home Loans.
3. Not Having A Home Inspection Or Hiring The Wrong Hollywood Hills Home Inspector
Unless you know what you are doing, do not do it. Don’t skip the home inspection to save money or because the listing agent told you, you would get the house if you would. A home inspection is a relatively inexpensive, and could save you tens or even hundreds of thousands of dollar. Referrals and your home buyer’s agent can be a great resource to find a great home inspector.
4. Not Understanding Current Hollywood Hills Market Conditions
Hollywood Hills Real Estate markets rise and fall continually. The current state of the Hollywood Hills Real Estate market determines many thing when you are buying a home. For example, if you are in a buyer’s market you will negotiate differently than when you are in a seller’s market. In a seller’s market, a seller may be motivated but not desperate while in a buyer’s market they may be desperate!
Most Hollywood Hills homebuyer’s understanding of the current market conditions can be 6 to 12 months behind what is really happening. Most market indicators are historical indicators making them a lagging indicator. If a market was flat and down last fall and winter, it doesn’t mean that market can’t turn on a dime and be red hot in the spring.
Only a Hollywood Hills Real Estate professional has access to the most up to date real estate market data and the skills to interpret them. Please make sure you are working with a full-time Hollywood Hills Realtor and not someone that “has” a real estate license promises to give you money back. I am a full-time real estate professional working 7 days a week for my buyers and sellers. That’s what you want to hear with whoever you’re working with.
5. Relying On Oral Agreements Or Statements
If you are purchasing a Hollywood Hills Home For Sale based upon what an agent or a seller is telling you, make sure to get it in writing – every single time. Oral agreements or representations are legal but not enforceable. “But the seller agent said”… is probably not going to cut it in court. Any representations that have been made to you and is not in any marketing materials or written contracts need to be put in writing immediately – either have the agreement “understanding” writing in to the RPA (Item 6) Other Terms to read as followed – or in a separate addendum.
6. Not Understanding Fair Market Hollywood Hills Real Estate Value
There is a process for determining fair market value for a home. It compares other real estate property with similar specifications in a similar location to the subject property.
What you can afford or what your family or friends thinks has nothing to do with what most other buyers in the marketplace will spend on that property. Only a Comparative Market Analysis or an Appraisal can indicate what a home is worth.
Being able to have an idea of what a home is worth will give you an understanding of it’s value as it sits today and will help you structure an offer that will get you the home you want.
7. Not Understanding How to Negotiate Real Estate Deals
It is easier for a Hollywood Hills homebuyer to negotiate in a buyer’s market. A buyer’s market will allow a Hollywood Hills home buyer to get away with a lot. Flip to a seller’s market and you will be putting in offer after offer in bidding wars. Only to be rejected if you don’t change your negotiating strategy. I can’t tell you how many times a homebuyer tried negotiating and is shocked when a seller didn’t even engage in negotiations with them and the sellers sold to another buyer that just plain easier to deal with.
There are so many variables in structuring a negotiating strategy and no one way will work every time. Hollywood Hills Real Estate Agents spend part of every day negotiating prices, home inspections and other detail involved in a real estate transaction. We can be an extremely valuable resource for you.
Your Hollywood Hills Real Estate Expert
I’m a local Hollywood Hills Real Estate agent with The Shelhamer Real Estate Group, and It would be my pleasure to help you find the perfect property to call home in the Hollywood Hills, or if you’re thinking about selling a house, condo, or multi-family building in, Studio City, Sherman Oaks, Encino, North Hollywood, Toluca Lake, or Burbank it would be a privilege to help you get top dollar for the sale of your property.
Lets chat sometime. 310-913-9477 or contact me.