There’s no question that buying real estate is one of (if not, the) most expensive investments a person will make. Knowing this, there is a lot that needs to be taken into consideration when buying property that many people do not understand. Unfortunately for these people, they can end up wasting a lot of money without even knowing it.

So, to help you become a smarter buyer, keep the following in mind to help safe yourself a pretty penny!

Not knowing what you want in a home: One thing many people do not think about is what they want versus what they need in a home. Without having guidelines or restrictions on what you want out of your home, you could be paying for a lot of additional features and space that you will never need or use.

Making decisions purely based on emotion: Alright, this one can be difficult as you are obviously going to have some emotions when looking for your perfect home. What’s important is to not make decisions on emotions without thinking things through rationally. When it comes to buying a home, you need to think about everything with a solid mindset. Emotions can really cloud judgment and can be very costly when buying a home. Your emotions may think a house is perfect, but what they sure won’t tell you about is the flood damage in the basement, or the deteriorated plumbing.

Not having a thorough inspection done by a reputable company: When it comes to home inspections, it is critical that you are the one who chooses and obtains the services of an inspection company to evaluate a home. If you leave this to any other party in the buying process, you’ll never know if the inspection company hired is trustworthy. Take the time and do the research for a reputable home inspection company. It may cost you some money now, but it is only a fraction of what you may have to deal with if you bought a home without knowing about its costly flaws and issues.

Not using an experienced Realtor: Not only is it important to work with a Realtor, but make sure they have some experience on their belts. Unless you are a real estate investor, chances are you don’t look to buy homes very often. Experienced Realtor’s can provide you the guidance, information and assurance to helping you find your dream home.

Not utilizing an experienced Realtor’s services: Many people, even though they hire a Realtor, really do not take full advantage of their services. Granted, your Realtor will keep you updated on properties that meet your requirements and price ranges, but there is so much more they can offer you as well without any additional cost to you.

One of the most important services they can help you with is negotiating. Your Realtor should not only know how to negotiate properly with their past experience, but they should also have an idea of the market value in the designated area to assure you do not excessively pay for a home. Choosing to keep your Realtor out of the negotiations can be a very costly mistake.

Not having someone or knowing how to properly negotiate: A lot of people do not realize there are different negotiating strategies and styles, which is something a Realtor should know about. Without having someone or the knowledge to negotiate properly, not only can it lead towards extremely restricted negotiations, but negotiations may be eliminated entirely.

Not fully understanding your Offer To Purchase rights, obligations and duties: When setting up and Offer to Purchase, it is critical that you understand the roles of all affiliated parties. If you do not understand everything, make sure to get clarification from your Realtor before anything goes into effect. Not understanding your roles and obligations in an Offer to Purchase can lead to increased costs on your behalf and even void the contract.

Shopping without financial pre-qualifications and guaranteed interest rates: Without taking the appropriate steps to becoming financially pre-qualified, you will have little to no idea what you can afford for a home and mortgage. This can obviously save you a lot of heartache, both from an emotional and financial standpoint. Also, it may be a good idea to get a flat rate so that you are not caught off guard with any escalating interest rate fluctuations.

Not understanding the true role of an agent: This is important, as it can really provide you some assurance when entering the negotiation phase. There are instances where an agent can be working as a sub-agent on behalf of the seller. This obviously won’t bode well for you as agents in this category will be more interested in the seller’s interests compared to yours. If you are unsure about this, make sure to ask. After all, wouldn’t it be nice to know that someone is negotiating for your best interests?

Not having a Comparative Market Analysis set up before placing an offer: In short, a Comparative Market Analysis is a report that shows asking and selling price fluctuations as well as what other homes in the area have sold for recently. Without a Comparative Market Analysis, you will have no idea if the home you are interested in buying is going over the average selling price in that area. It is crucial to know about market value in your location of interest, or else you could be spending a lot of extra money.

So there you have it. Keep these 10 things in mind as they can really save you a lot of money. Also, never be afraid to ask for advice and get help from your friends and family. Chances are they have been where you are and can provide you some advice from their past experiences.