Mistakes to Avoid When Buying a Property
It is essential that you do your homework before you begin. Do your research and learn from the experiences of others. At RE/MAX we will guide you every step of the way, and assist making your home buying experience a positive one.
7 MISTAKES TO AVOID WHEN BUYING A HOME
Searching for a House Without Getting Pre-Approved by a Lender
Pre-qualification is the first step toward being pre-approved. It will point you in the right direction and give you an idea of the price range of houses that you can comfortably afford. Talk with your bank or mortgage broker. Once you become Pre-Approved, you will be in a position where you can make a serious offer on a property.
Allowing “First Impressions” to Overly Influence Your Decision
The first impression of a home is often the most influential factor guiding many buyers to move forward on a property. Make a conscious decision beforehand to examine a home as objectively as you can. The current owners’ style or lifestyle should not sway your judgment. Beneath the bad décor or messy rooms you may discover a home that actually suits your needs and offers you a structurally sound base with which to work. Likewise, make sure you thoroughly investigate the structure beneath the paint, even if it is your favourite colour, before you come to make your decision.
Failing to Have the Home Inspected
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 is essential, offering you added reassurance that the choice you are making is a sound one, or alerting you to underlying problems that could cost you significant money in both the short and long-run. We can suggest reputable home inspection companies for you to consider, make arrangements to have it done and ensure the appropriate clause is entered into your contract.
Not Knowing Your Rights and Obligations 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 cause friction between yourself and the people with whom you are about to enter the contract. Wrong assumptions, or 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. Take the time to go through the contract 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.
Making an Offer Based Upon 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. 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. The CMA will include information such as what other homes have sold for in the area, how long they were on the market, the difference between the asking and selling price, and whether the home you are considering is under-priced, over-priced, or fair market value.
Failing to Familiarize Yourself With the Neighbourhood Before Buying
Check out the neighbourhood you are considering. It is important that the area you are considering moving to has all of the amenities that you are looking for. Are there schools, parks, shopping and entertainment nearby? Is there easy access to public transportation? If you have children, you may want to consider visiting schools in the area. Are there any major infrastructure projects in development? All of these factors will influence the way you experience your new home, so ensure that you are well acquainted with the surrounding area before purchasing.
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. In reality, this strategy may actually result in the seller becoming more inflexible and polarizing negotiations. Employ the knowledge and skills of an experienced realtor. They will know what strategies of negotiation will prove most effective for your particular situation.