10 Most Common Mistakes Buyers Make When Purchasing a Home
Choosing a Real Estate Agent who is not committed to forming a strong business relationship with their client. Making a connection with the right Real Estate Agent is crucial. Choose a professional who is dedicated to serving your needs - before, during and after the sale.
Making an offer on a home without being pre-qualified. Pre-qualification for financing will make your life easier - take the time to speak with a bank or mortgage broker. In the toolbar at the top of the page go to 'mortgage calculations' and then click on 'financing options'. There you will find a list of financing professionals to choose from. The specific questions with regard to income, debt and other factors will help you determine the price range that you can afford. It is one of the most important steps on the path to home ownership.
Not knowing the total costs involved. Early in the buying process, ask your Real Estate Agent or mortgage professional for an estimate of closing costs. In the toolbar at the top of the page go to 'for Buyers' and then click on 'Closing Costs'. It is important to be informed as to total costs so that you know exactly what price range for homes you are targeting. Knowing this information up front makes for a much more informed and enjoyable experience when home shopping.
Limiting your search to open houses, ads or the Internet. Many homes listed in magazines or on the Internet have already been sold. Also, only a small percentage of homes are available to view via Open Houses. Your best course of action is to contact a Real Estate Agent. They have up-to-date information that is unavailable to the general public, and are the best resource to help you find the home that you want.
Thinking that there is only one perfect home 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 Real Estate Agent for a Comparative Market Analysis (CMA). This compares similar homes that have recently sold or are still for sale.
Not considering long-term needs. It is important to think ahead. Will the home suit your needs 3-5 years from now? How about in 5-10 years? Consider schools, recreation facilities, medical clinics, hospitals, etc.
Not following through on due diligence. Make a list of any concerns you have relating to issues such as crime rates, 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.
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. It is important to know what issues, if any, the home has. In most cases any problems detected are ones that can easily be corrected and may form a part of the negotiation process as to whether the seller or buyer will pay for the necessary solutions.
Not examining insurance options. Purchase adequate insurance. Advice from an insurance agent can provide you with answers to any concerns you may have as well as provide you with the necessary information that you need in order to insure your new home and property.
Not being prepared to act and make an offer when you find a home that you like. Once you have taken care of the points above and you have found a home that suits your needs, act immediately. It is important to do your due diligence and then be prepared to make an offer and start the negotiation process. Some buyers find themselves very disappointed due to delaying making an offer and following through. It's an exciting process but sometimes one with some anxiety too. This is where you lean on your Real Estate Agent and allow them to help you through the final steps of buying your new home!
Barbie Whitworth 604.741.1239 Shay Moudahi 604.989.9888 Reaching Your Goal is Our Mission