8 MISTAKES TO WATCH FOR WHEN BUYING A HOME
8 Mistakes to watch out for when buying
1. Searching for homes without getting pre-approved:
Pre-approval by a lender and Pre-qualification are not the same thing. Pre-qualification, is the first step toward being pre-approved, and will point you in the right direction, giving you an idea of the price range of homes you can comfortably afford. But Pre-approval means you become a buyer, making the negotiations with a seller much easier. You are ready to go!
2. Don’t allow your first impression to influence your decision:
Your first impression of a home will be crucial, and is cited as the single most influential factor for guiding the purchasers’ choice to buy. Do your homework and be as objective as you can. Don’t let the current owners’ style or lifestyle sway your judgment. Your furniture will be different! Try and see through any mess and strange colored walls! Make sure you check out the home that lies beneath the paint color, before you make 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. Sometimes less time than test driving a car! A home inspection performed by a professional will help you enter the negotiation process well informed. It will give you an added reassurance that the choice you’re making is a good one. Or it will alert you to any underlying problems that could cost you money in the long-run. We have reputable home inspection companies for you to consider, and will put the appropriate condition into your contract.
4. Know your rights and obligations as listed on the Offer to Purchase:
Any lack of awareness of how the conditions apply to the purchase can contribute to increased costs. These problems may even lead to a void contract. Take your time to go through the contract with us, we have experience in presenting contracts. Our aim is to give you the best conditions that you want, making your move or purchase clear and defined, with as least stress as possible.
5. Making an offer based on the asking price, not the market value:
We will present our 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. We will be compiling other comparable sold homes 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, over-priced, 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. Familiarize yourself with the neighbourhood before you buy:
Check out the neighborhood you’re considering, and ask potential neighbors what they like about it. What amenities does the area have to offer? Check out the schools, churches, parks, and shopping within reach? Consider visiting schools in the area if you have children. How about logistics, will you be affected by a new commute to work? Are there any City plans for the area? 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. Check out your home insurance before you move:
Don’t wait until the last minute, you’ll be rushed to find an insurance policy, pick the ideal fit for you. Make sure you give yourself enough time to shop around in order to get the best deal.
8. Be fair but firm in your negotiation:
Many buyers think that the way to negotiate their way to a fair price is by offering a lowball. However, in reality this strategy may actually result in the seller becoming more inflexible and not willing to work with you. Employ our knowledge and skills as an experienced realtor. After 20+ years we know what strategies of negotiation will prove most effective for your particular situation.