Five Mistakes that a Homebuyer Should Avoid in a Real Estate Transaction
By: Tilden Moschetti
There are some things that one can do by himself or herself, with minimal research and assistance. Home buying or selling real estate, however, are not part of those things.
A first-time home buyer or seller would often start by looking for a licensed real estate agent or real estate broker. Real estate brokers and agents, however, are not the only professionals that are necessary for real estate matters. Remember that real estate brokerage is covered by areas of law that would often require legal representation.
Mistake 1: Not getting legal advice despite having no prior real estate experience
Statutes are governing real estate transactions to protect the best interest of both parties (home buyers and sellers). As with any legal matter, utmost diligence to follow relevant state law is necessary.
Both the buyer and seller of a real estate property must be aware of local real estate law that must be followed. Competent Calabasas real estate attorneys can explain what is expected, both from people selling real estate and aspiring property owners.
Mistake 2: Underestimating the obligations of a home mortgage loan borrower
Unless you intend to buy or sell the property after probate of wills (or when you suddenly have significant assets that are at your disposal), negotiation with a mortgage company is almost always necessary. Tenants who have been renting for a long time could know the twists and turns of landlord-tenant law but would be clueless on how to negotiate with a lender or creditor. As such, it is important to have an expert who can answer your legal questions on mortgages and give you basic real estate information.
Mistake 3: Not looking into the home for sale as a real estate investment
Regardless if there are dual agencies (an experienced Calabasas real estate attorney can help explain this further) real estate agents and real estate brokers often market properties based on the selling price. If you have no experience in real estate, it might be difficult to see your new home beyond the purchase price. The local real estate market is highly complex, and you could not be getting the most out of your money if you are not working with the right people.
Mistake 4: Not doing a thorough check of the property
Before drafting a possible real estate contract, home sellers get the real estate services of a qualified home inspector. This real estate professional will conduct a thorough home inspection, particularly on issues that must be addressed and necessary updates or repairs.
More than being a required process in the real estate industry, however, inspections are beneficial for the would-be new homeowner. After all, you wouldn’t want to buy a property with hidden issues on the roofing, electric wirings, foundations, plumbing, or sewage. Get legal help from a trusted Calabasas real estate attorney to know what must be done. Aside from legal services, the services of other real estate professionals may be necessary.
Mistake 5: Not looking closely into disclosures
All real estate sellers focus on what will appeal to an aspiring homeowner looking for real property. However, before proceeding with real estate sales and negotiation, the property owner must first inform the buyer of factors that had an impact on the selling price.
Pursuant to relevant real property law, before one can sell real estate, homebuyers must first be notified of any updates or repairs that have been done to the property since the first home purchase. This disclosure includes updates and repairs for issues that have been resolved. Otherwise, the person selling a home could face legal issues with the would-be new homeowners.
Take real estate transactions seriously
Negotiating for residential real estate, or even commercial real estate can be quite tricky. Real estate business law must be taken into account. As such, it is important to contact a real estate firm and seek legal help from a hands-on real estate law attorney before proceeding.
For closings paperwork that involves escrow, appraisal, and title insurance, or for real estate questions on zoning, land use, easement, or eminent domain, call our law firm. Contact our reliable Calabasas real estate attorney at Mochetti Law Group for your real estate needs.
At Moschetti Law Group, our practice serves the needs of Founders by providing real estate law and real estate syndication attorney services to Founders. Whether you are the Founder of a real estate empire or building a business and need assistance with purchase and sales, real estate transactions, or real estate litigation, we serve Los Angeles County, eastern Ventura County, and North Orange County from our office in Calabasas. We also have a primary focus on helping Real Estate Syndication Founders throughout the United States with forming their syndication, understanding crowdfunding, private placement memorandums, and operating agreements.