To the great relief of many people, both inside and outside the real estate industry, it looks like that the worst part of the depressed real estate market may be behind us. It's risky business attempting to predict market changes (see below) but at least in some parts of the country it does look like buyers are beginning to come out of their long hibernation. If you are looking into buying a home, here are the top ten mistakes that you will need to avoid before taking the plunge.

1. Not Obtaining a Mortgage Pre-approval
Getting pre-approval for a loan is an important first step for potential buyers. Getting a mortgage pre-approval will give you a much better idea of the amount of money you can readily borrow. Having a pre-approval letter also indicates that you are serious about buying. Most sellers with quality homes won't even consider an offer unless it is accompanied by verification of pre-approval. Also, should any problems with your credit worthiness crop up it is better to discover them at the start of the process, when you still have time to take action to resolve them. Discovering a credit problem after you have already committed to a home purchase can be distressing.

2. Not Hiring a Buyer's Agent
Unless other plans are made, with most full service real estate companies, the buyer's agent works for you at no cost to you. His or her commission is paid by the seller's representative after the sale closes. Hence, it is in your best interest to hire your own representation - a buyer's agent - instead of working with the seller's agent. The seller's agent is obligated by law to act in the seller's best interest. By using the services of a buyer's agent you can level the playing field since a buyer's agent is required to serve your best interests.

3. Selecting the Wrong Real Estate Agent
Before selecting a buyer's agent you should interview several different agents. Get the names of earlier clients in order to obtain references. Don’t limit yourself to agents with large brand name offices or so called "top-producing" agents. Also, before hiring a friend or family member who is an agent, remember that if you are disappointed with the service being provided, it's much easier to fire an agent who you have no personal ties to.

4. Not Realizing the Length of Time Involved
Buyers, and sellers, often believe that the process of buying property is shorter than it actually is. There are a wide range of unforeseen problems that can create delays. Sellers can drag their feet on formally accepting your offer, you may have trouble selling your old home, the loan processing may be held up, repairs may have to be made, problems with getting an title to the property may arise. Murphy's Law always appears to surface when trying to secure a deal promptly. Be sure to allow at least eight to twelve weeks to complete the transaction.

5. Presuming the Appraisal and/or the Tax Assessment Are Equal to the Market Value.
Appraisals and tax assessments are designed to be objective approximations of value. However, different appraisers can come up with considerably different valuations. Buyers should have their agent perform a comparative market analysis (CMA) to get a better idea of the house's present market value before offering to purchase.

6. Attempting to Time the Variations of the Real Estate Market
Trying to time a purchase with when the market has hit it's low point is virtually impossible. I would be a very rich man if I were able to do so! Both buyers and sellers need to realize that a practical real estate investment is always a long-term investment.

7. Ignoring the Facts When Looking for Your Dream Home
When buying a home, if you only follow your heart and not your head, you will probably be in for some nasty surprises. That magnificent home may seem to be your dream home, but make sure to take into account all that is involved. Consider such unexciting things as the impact a larger home loan might have on your resources, commuting distances, the details of local schools and shopping facilities, the cost of property taxes and a homeowner association and other quality-of-life aspects of home ownership. That fabulous house may not be worth the problems it causes you and your family.

8. Not Remembering That Timing Is Everything
As you can probably imagine, paying double mortgages can be exceedingly tricky to deal with. When considering selling your current home and buying another, don't forget that the sale of your current home is the more essential of the two transactions. If you would be unable to make payments on two home loans, If at all possible, try to secure the sale of your present home prior to committing to purchase a new one.

9. Not Reading the Contract.
Keep in mind that a purchase contract is a legally binding document. Failing to understand what you’re agreeing to can be a major mistake. Review the document cautiously prior to signing and get clarification if there is something you are unsure about. Don't be afraid to run it by your attorney if you wish. Be certain that it contains everything you believe it should, including which party is paying for what. Verbal agreements should be included, in writing, in the contract. Make sure that your agent takes a proactive role in the writing and negotiation of the contract. Rushing through this step may add delays and result in financial and emotional pain.

10. Not Initiating a Criminal Search for the New Neighborhood.
Agents in most areas of the USA are not required to advise buyers if there is a sex offender or other illegal activity in the location. Check with the local police department or sheriff’s office to learn how to access local sex offender and related criminal databases. Additionally, the internet has made this information much easier to obtain in recent years. There are many online sites for discovering this information. Visit the website www.backgroundcheckpoint.com for information about some of these investigative resources.