1 . Doing everything yourself.

Buying a house is a complex transaction. Even if you don't use an agent, you'll need a complete, dependable team: lender, lawyer, inspector, and insurer. Enlist the help of these individuals early in the buying process. Many buyers do not comprehend the important value relationship between real estate services offered or provided and compensation obligations.

2. Not getting pre-qualified and pre-approved.

Being pre-qualified gives you a general idea of how much you can afford to borrow. Being pre-approved means a lender has verified your information and credit rating and agreed to provide you with a specific amount of money. This will help prevent you from being turned down after falling in love with a home. It will also save you the strain of having to find a lender within a few days of conditionally buying a home. In times of fluctuating interest rates it would benefit you to lock in a lower rate. This could save you thousands of dollars if the rate increases while you are in the process of buying.

3. Buying at first sight.

Buying a home is an important and exhilarating process! You may be in love with the place, but does it fit your family's needs and budget? Make a list of your needs and wants and make sure the house fits your requirements. Check out the neighborhood and the community before you buy by visiting at different times of the day and week to learn about noise and traffic patterns. Even if you don't have kids, check out the local schools to make sure your resale value will be good. B e sure not to get so excited that you get in over your head

4. Forgetting or betting on resale.

Avoid buying a home that costs 50 percent more than neighboring homes and think before buying the most expensive home on the block. Your neighbors' lower home values will weaken yours. Remember, markets change. If you buy intending to flip your investment and the market falls and you have to sell, your selling price may not be enough to even cover your mortgage. Have your agent prepare all the area sales and comparables in your area and get a copy to look over before you make your offer. This will help ensure that you do not overpay what the home is really worth. In most cases, this is the same type of information that the seller saw when setting the price of their home.

5. Overbuying

You may qualify to borrow more, but can you afford to? Analyze your monthly costs: debt, food, transportation, entertainment, and savings. As a general rule, your total monthly debts, including your mortgage, should not exceed 36 percent of your income before taxes. Be sure to budget enough to cover closing costs (often two to five percent of the home's purchase price- Buyers think that sellers pay real estate commissions-they do typically pay commissions- as well as other closing expenses and seller concessions ), plus moving, redecorating and maintenance.

6. Misplacing your trust.

No matter how much you like the agent, sellers, inspector, or the guy down the block who vouches for them, remember this is a business transaction. Your decision is binding. Do your own research and know your support team's roles and responsibilities. Buyers don't clearly understand the roles and duties of real estate licensees, especially who represents whom in purchase transactions, and may wrongly misinterpret or rely on a licensee's actions as representing the buyer's interests alone. Buyers think mortgage companies and appraisers protect and promote the best interests of the buyer. Buyers may innocently disclose confidential and material information about their buying needs, financial abilities and negotiating strategies to sellers and their agents, especially when not aware of the roles of the licensees involved in a transaction.

7. Relying on oral agreements.

Get it right and get it in writing. Written agreements almost always trump oral ones when it comes to contracts. If the offer says the lawnmower is negotiable, but the agent says it's included, get it in writing.

8. Skipping the fine print.

You need to understand what you're signing before you pick up a pen. Ask for documents in advance, make time to read them and ask questions. Get copies of your mortgage papers a few days ahead of closing. It is of the utmost importance to be aware of your rights and what to expect from a competent real estate agent.  A small mistake in a condition or clause could end up costing you time and money, or in some cases even void your contract.

9. Attend the Personal Home Inspection.

Never buy an existing or new home without a thorough home inspection. Buying your home often times the most important investment and financial transaction that you will ever make. A home inspection can save you hundreds or even thousands of dollars and unexpected problems down the road. Walk through the home with the inspector to learn more about the house and any concerns he or she may have.   In addition to the inspection, it is often a good idea to request some type of Home Warranty to cover the electrical appliances that come with the home. .

10. Making an unconditional offer.

Protect yourself with at least two of these contingencies in your offer:

A.      Mortgage financing -- You're pre-approved, but is the house? Before a bank will lend you money, it will want a formal appraisal of the property to confirm that there is sufficient equity in it to warrant the loan. If the house appraises lower than the sales price, the loan may be declined.

B.      Home Inspection - If there is anything wrong in the Home Inspection that you feel is a deal breaker, then you can use that to get out of the contract.

Insurance -- confirm you can get adequate coverage. In some areas, it's difficult to get hazard insurance.

11. Not using your Agent to Negotiate .

Some buyers have been told that the best way to get a good price is to low-ball the seller from the start in hopes that the seller will drop their price down fast in their counter offer. In reality this often does nothing more than upset the seller and will probably end up ruining the chance at an acceptable offer to both of the parties involved. If you have good communication with your agent, and they will be able to inform you on the many proper ways to negotiate a deal and still get you the lowest price. Buyers fail to understand how critical it can be to carefully design contracting strategies and techniques in order to better negotiate with sellers and their agents.

12. Having buyer's remorse.

No place is perfect. There will always be surprises. Don't let a few initial blips spoil the whole ride. And don't miss a great house waiting for the perfect one!