5 Serious Mistakes Made by Home Buyers.
Open houses are a great way to begin a new home search but after a while it becomes distracting visiting houses with other visitors wandering about, talking; cluttered
boots and wet floors at the entry way. The agent on duty may greet you but what they really want is to go home and avoid the probing questions. Some people are never happy with the answer; always sceptical. Work with a trusted agent.2. Don’t consider the big picture in financing.
Home financing is a big deal! Without clarity a house search is a waste of time. Approval, Pre-approval, Deposits, Down Payment, RRSP Withdrawal, 32% or 42% Lending Factor, Discount Interest Rates or Published, Bank or Mortgage Broker, Term or Amortization period, Insured or not, CMHC Mortgage Insurance, Gifts, PLC, Repayment Privilege, Accelerated Payments, Credit Rating, Equifax, Tax Assessments, Mortgage Insurance, Cash Flow. If you default on Purchase Agreement… now what? House Poor or comfortable? Power of sale? KK Need I say more? Ask a real estate agent for advice.
3. Shop for housing like they browse eBay.
The internet is a empowering tool to help buyers see most of the inventory of homes, building lots and commercial listings for sale. With the click of the mouse internets sites update, select by price, style and features desired. Consider the act of choice; every mouse click includes and excludes choice homes. Not a simple as it at first appears. Perhaps the philosophic thought applies… When the student is ready the teacher appears. When the buyer is ready the house appears. Or does it? Now what? What is value vs. price? What are past sales in the neighbourhood? Write an offer on a napkin and send to whom? You could ask a friend for help or trust mom and dad for their thoughts. Wouldn’t it be easier to ask a real estate agent for guidance right from the beginning? They are your personal guide to a successful purchase.
4. Offer too low and expect too much.
It is common to think that the process of buying is to offer low and negotiate to middle ground. Remember the seller has done their home work and knows market conditions affecting their house. Of course they have an experienced real estate agent guiding them all the way from market conditions to expected sale price. They have reviewed the most likely buyer by demographic profile. As a buyer don’t you want the same service? Offer too low and the seller isn’t interested in working with you. An insult! No second chance if you discover that there was a second offer! Like having the carpet pulled our from under you.
5. Mistrust the help of professionals.
As an agent broker I work with many professionals in the real estate field on a daily basis. They have specialized knowledge and experience. Recently a lawyer told the story of a buyer who asked him to do only the registration of a house sale and how much would that be. Apparently the buyer felt they could do all the other tasks on his own after viewing an on line description of a real estate conveyance . They were up for the challenge and could save money at the same time. The lawyer wisely declined the case. Buyers and some sellers frequently don’t grasp the consequences of contract law. Claiming not to know may work in high school but it could land you in court for serious damages if your offer goes off the tracks. Do it right. Hire and trust professionals.