The Oakes Home Team

Experience Excellence

8 Mistakes to Avoid When Buying a Home

You’ve been saving for awhile, weighing your options, looking around casually. Now

you’ve finally decided to do it—you’re ready to buy a house. The process of buying a

new home can be incredibly exciting, yet stressful, all at once. Where do you start?

 

It is essential you do your homework before you begin. Learn from the experiences of others, do some research. Of course, with so many details involved, slip-ups are

inevitable. But be careful: learning from your mistakes may prove costly. Use the

following list of pitfalls as a guide to help you avoid the most common mistakes.

 

1. Searching for houses without getting pre-approved by a lender:

Do not mistake pre-approval by a lender with pre-qualification. Pre-qualification,

the first step toward being pre-approved, will point you in the right direction,

giving you an idea of the price range of houses you can comfortably afford. Preapproval, however, means you become a cash buyer, making negotiations with the seller much easier.

 

2. Allowing “first impressions” to overly influence your decision:

The first impression of a home has been cited as the single most influential factor

guiding many purchasers’ choice to buy. Make a conscious decision beforehand

to examine a home as objectively as you can. Don’t let the current owners’ style

or lifestyle sway your judgment. Beneath the bad décor or messy rooms, these

homes may actually suit your needs and offer you a structurally sound base with

which to work. Likewise, don’t jump at a home simply because the walls are

painted your favourite colour! Make sure you thoroughly the investigate the

structure beneath the paint before you come to any serious decisions.

 

3. Failing to have the home inspected before you buy:

Buying a home is a major financial decision that is often made after having spent

very little time on the property itself. A home inspection performed by a

competent company will help you enter the negotiation process with eyes wide

open, offering you added reassurance that the choice you’re making is a sound

one, or alerting you to underlying problems that could cost you significant money

in both the short and long-run. Your Realtor can suggest reputable home

inspection companies for you to consider and will ensure the appropriate clause is

entered into your contract.

 

4. Not knowing and understanding your rights and obligations as listed in the

Offer to Purchase:

Make it a priority to know your rights and obligations inside and out. A lack of

understanding about your obligations may, at the very least, cause friction

between yourself and the people with whom you are about to enter the contract.

Wrong assumptions, poorly written/ incomprehensible/ missing clauses, or a lack

of awareness of how the clauses apply to the purchase, could also contribute to

increased costs. These problems may even lead to a void contract. So, take the

time to go through the contract with a fine-tooth comb, making use of the

resources and knowledge offered by your Realtor and lawyer. With their

assistance, ensure you thoroughly understand every component of the contract,

and are able to fulfill your contractual obligations.

 

5. Making an offer based on the asking price, not the market value:

Ask your Realtor for a current Comparative Market Analysis. This will provide

you with the information necessary to gauge the market value of a home, and will

help you avoid over-paying. What have other similar homes sold for in the area

and how long were they on the market? What is the difference between their

asking and selling prices? Is the home you’re looking at under-priced, overpriced,

or fair value? The seller receives a Comparative Market Analysis before

deciding upon an asking price, so make sure you have all the same information at

your fingertips.

 

6. Failing to familiarize yourself with the neighbourhood before buying:

Check out the neighbourhood you’re considering, and ask around. What

amenities does the area have to offer? Are there schools, churches, parks, or

grocery stores within reach? Consider visiting schools in the area if you have

children. How will you be affected by a new commute to work? Are there

infrastructure projects in development? All of these factors will influence the way

you experience your new home, so ensure you’re well-acquainted with the

surrounding area before purchasing.

 

7. Not looking for home insurance until you are about to move:

If you wait until the last minute, you’ll be rushed to find an insurance policy that’s

the ideal fit for you. Make sure you give yourself enough time to shop around in

order to get the best deal.

 

8. Not recognizing different styles and strategies of negotiation:

Many buyers think that the way to negotiate their way to a fair price is by offering

low. However, in reality this strategy may actually result in the seller becoming

more inflexible, polarizing negotiations. Employ the knowledge and skills of an

experienced realtor. S/he will know what strategies of negotiation will prove

most effective for your particular situation.

 

From MyRealPage.com

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