Top 5 home-buying mistakes
By Cynthia E. Brodrick • Bankrate.com       edited to fit GA law by Phil Turner 

You can't build a good house out of stumbling blocks. With that fortune-cookie saying in mind, beware of the following common home-buying mistakes:

1. Misunderstanding the real estate agent's role.
Real estate agents are very friendly. That's a major part of their job. In the course of shopping for a house, a home buyer spends a lot of time with an agent. However, the wise home buyer understands who's working for whom. Unless the agent is an exclusive buyer's agent, then, by law, agents are working for the sellers. Most states require them to tell the home buyer this in the beginning, but it's easy to forget. If an agent's potential dual role (when an agent represents both parties, buyer and seller) is a concern, a home buyer should contract with a buyer's agent who is obligated to work for the home buyer exclusively. This doesn't cost the buyer any thing since the agents then split the seller paid comissiont. A wise home buyer will agree to work with the agent for 90 days or so and should not contract with anyone who insists on upfront fees or a long-term contract. You can cancel this buyers agency contract at any time, but you will still be responsible to see the agent is paid the commission for any homes he showed or introduced you to. 

2. Falling in love with a certain home.
If you think a house is ideal, keep it to yourself and your agent, don't let the seller or any of the seller's agents know how you feel. If the seller finds out you're in love with the house, the seller will hold out for a higher price. A wise home buyer knows there's lots of houses -- and there's one out there that's the right house at the right price. If you can't afford it or cannot get the proper price accepted, move on and keep looking

3. Not doing proper research and preparation.
Understand your family's finances and needs. The wise home buyer will analyze assets, debts and pull a credit report before plunging into the house hunt. Understanding your finances prevents wasted time looking at unaffordable houses. Before making any offers, get pre-approved -- not just prequalified -- for a loan. Learn how to fit a mortgage payment into your budget. Know the neighborhood. Remember you're not just buying a house; you're also buying a location. With the agent's help, a home buyer can find out about the quality of schools, the crime level and upcoming zoning issues. Make a proper offer. Don't base your offer on the seller's asking price. Instead, get a comparative market analysis from your agent. This analysis will reveal recent asking and sales prices of similar homes in the neighborhood. With this, a wise home buyer can make an offer that is comparable. Understand the responsibilities and costs of home ownership. The wise home buyer knows that owning a home is complicated and potentially expensive. Besides the mortgage, one needs to plan on paying for insurance, assessments if any, property taxes, repairs, appliances, landscaping and improvements.

4. Not getting two important contingency clauses in the contract.
When making an offer, a wise home buyer asks for two important clauses -- a "Appraisal Contingency Exhibit" and a professional inspection contingency. These could save a lot of money and grief. The appraisal contingency exhibit saves you if the home doesn't appraise for the offered price. You can cancel the sale and renegotiate the price or get back your deposit. The second clause hinges the deal on a professional inspector OK'ing the house. If the inspector discovers hidden flaws, structural damage or faulty systems, the wise home buyer may want to renegotiate or back out of the deal. An even wiser home buyer goes through the house with the inspector to learn any concerns the inspector has.