10 Deadly Mistakes
buyers make when purchasing a home
1. Making an offer on a home without being prequalified.
Prequalification will make your life easier – so take the time to speak with a lender. Their specific questions in regard to income, debt, etc., will help you determine the price range you can afford. It is an important step on the path to home ownership.
2. Not having a home inspection
Trying to save money today can end up costing you tomorrow. A qualified home inspector will detect issues that many buyers can overlook.
3. Limiting your search to open houses, ads or the internet
Many homes listed in newspapers or on the internet have already been sold. Your best course of action is to contact a Realtor. They have up-to-date information that is unavailable to the general public and are the best resource to help you find the home you want.
4. Choosing a real estate agent who is not committed to forming a strong business relationship with you.
Making a connection with the right Realtor is crucial. Choose a professional who is dedicated to serving your needs – before, during and after the sale
5. Thinking there is only one perfect house out there.
Buying a home is a process of elimination, not selection. New properties arrive on the market daily, so be open to all possibilities. Ask your Realtor for a comparative market analysis. This compares similar homes that have recently sold, or are still for sale.
6. Not considering long term needs.
It is important to think ahead. Will the home suit your needs 3-5 years from now?
7. Not examining insurance issues.
Purchase adequate insurance. Advice from an insurance agent can provide you with answers to any concerns you may have.
8. Not knowing total costs involved.
Early in the buying process, ask your Realtor or lender for an estimate of closing costs, such as lawyer/notary, property purchase tax, GST, inspection fees, insurance and mortgage fees. Remember to examine your statement of adjustment prior to closing.
9. Not following through on due diligence.
Buyers should make a list of any concerns they have relating to issues such as; schools, power lines, neighbours, environmental conditions, etc. Ask the important questions before you make an offer on a home. Be diligent so that you can have confidence in your purchase.
10. Trying to make a shrewd investment/ Timing the market
When you are buying a home to live, you should focus on the enjoyment of your home and what fits your needs. When you decide to upgrade or downgrade in the future, you sell and buy in the same market, whether a boom or bust cycle. Your Realtor can be your guide to make sure you find the right house at the right price.