Page 39 - How To Buy A Home In Louisville

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Top 10 Homebuying Mistakes

1 Fixing and reselling without the right information up front.

Watch out! Don’t pay too much for that falling down heap, and don’t put too much into it. Be
careful about removing asbestos and lead-based paint and mold. Ask your RVG agent to see
what other fixed-up homes are worth it in the area, subtract the sales price of the house in
question, and subtract closing costs. The number left over is your profit and budget for resale.

2 Removing lead paint the wrong way.

Houses built prior to 1978 were likely painted with lead-based paint, which can be dangerous
to be around for extended periods of time. If someone has painted over the lead based paint
incorrectly, and the paint starts chipping off, the underlying lead paint can be harmful to you.
Go online to http://www.epa.gov/lead/protect-your-family-exposures-lead for information.

3 Buying a foreclosed property that looks too good to be true.

When buying a property from a bank who took it from an owner who didn’t pay their mortgage
payments, know what you are doing. The people who didn’t have enough money to pay their
mortgage may not have had enough money to treat for termites, replace the furnace, or fix the
water leak. The bank wants their investment back, but you need to make sure you aren’t losing
yours. Spend the money to get very thorough inspections for everything. Purchase title insur-
ance! You can find foreclosed properties online or at auctions on the courthouse steps.

4 Buying a house from a seller that refuses to sign disclosures.

Realtors® must turn in a Seller Property Condition Disclosure for their listings, which is a
questionnaire asking the seller about any defects in the house so that the buyer can make an
educated decision and know what they are buying. The seller, however, does NOT have to sign
it. If the seller has lived there and they don’t sign it, there might be something they don’t want
you to know about. If the seller has never lived there (rental property) they may truly not know.

5 Buying a house For-Sale-By-Owner (FSBO) with no disclosures.

When a seller lists their house with a Realtor®, the Realtor® must provide the seller with a Prop-
erty Condition Disclosure. Sellers who advertise their property For Sale By Owner do not have
to tell you anything that has gone wrong with the house. Your RVG agent will ask for written
disclosures from any house you view, whether or not it is listed with an agent.

The River Valley Realty Group - How to Buy a Home in Louisville, Kentucky 37