7 Mistakes First Time Home Buyers make

7 Deadly Mistakes Buyers Make!
Well it won't kill you, it can cost you. Knowing the facts can help you avoid costly mistakes.

1. Making an offer without being pre-qualified.

Making an offer without knowing what you qualify for can lead to disappointment when you find out you aren't able to get a mortgage afterall.

2. Not having a home inspection.

I always recommend looking at a home at least twice before making an offer, however, a home inspector is trained to look for existing problems and potential problems in the home. This can help you decide if you want to proceed with the purchase, ask the Seller to fix the problem, or ask the Seller if they can reduce the price based on the home inspector's findings.

3. Limiting your search to open houses, ads, or the internet.

As a realtor, I have access to listings as soon as they are posted on my board and sometimes know even earlier as Royal LePage State Realty posts them on a board in our office right away. There is a delay on postings on http://www.realtor.ca/, open houses occur after the listing has already been posted as are ads. That means a buyer working with a realtor will know before you do and may purchase that home before you've even had a chance to look at it. I create a personal search for all my clients and call them right away if I see something that they should see.

4. Choosing a real estate agent who is not committed to forming a strong business relationship with you.

Choosing someone who isn't committed to keeping you as a client for life can be a cost you down the road. My goal is to keep you a client for life and I do that by helping my clients make the right decision, pointing out the potential pitfalls of a home or area (even though it could cost me a sale), and advising them with their best interests in mind at all times.

5. Thinking there is only one perfect house out there.

Buying a home is a process of elimination and is not a race! Trust the right house is out there for you and keep an open mind to possibilities.

6. Not considering long term needs.

Moving can be expensive so you want to make sure that the home you choose suits your long term goals. If you want loads of children in a few years selecting a 2 bedroom home today may not be a good decision for you. I like to talk to my clients about their goals, their plans for the future, and the future re-sale potential. Re-sale potential is a huge factor for me because I want to ensure that you buy in an area where your home will continually increase not decrease or stay the same because I want to ensure you make money for your next purchase.

7. Not knowing total costs involved.

Your mortgage broker or bank will want to know that you have the downpayment and closing costs. As a first time buyer you qualify for a rebate on your land transfer tax (depending on your purchase you may not have to pay it). Other closing costs to consider are any adjustments (ie: the Seller has paid their taxes in advance ... you will have to rebate that to them on closing), and legal fees. A rough estimate on closing costs for a first time buyers are 1.5% of the purchase price.

I run first time buyer seminars to make sure all your questions are answered before you begin your search. Contact me anytime for upcoming events or to book your own personal first time buyers presentation.



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