Shopping for a new Kamloops home is an exciting experience. It also can be emotional, time consuming, expensive and comes with a myriad of details. Some buyers get caught up in the excitement of buying a new home tend to overlook some items. Their home purchase turns into an expensive process. These errors generally fall into three areas:
* Paying too much
* Losing a dream home to another buyer
* Buying the wrong home
When you have a systematic plan before you shop, you will be sure to avoid these costly errors. Here are some tips on making the most of your home purchase:
Making an offer on a home without being pre-qualified
Pre-qualification will make your life easier—so take the time to speak with a bank or mortgage broker. Their specific questions in regard to income, debt, etc., will help you determine the price range you can afford. It is an important step on the path to home ownership.
Not having a home inspection
Trying to save money today can end up costing you tomorrow. A qualified home inspector will detect issues that many buyers can overlook. You will have an idea about future repairs that will need to be made to the home and often you will be provided with a general idea of cost for those repairs.
Limiting your search to open houses, internet and newspaper ads
Many homes listed in magazines or newspapers have already been sold by the time the issue comes out in print. Open houses are a good way to start but once you are serious about finding a home a Realtor can provide you with up to date information on new listings that is not readily available to the general public. The public MLS website is 2-4 days behind the system Realtors have access to.
Choosing a Realtor who is not committed to forming a strong business relationship
Making a connection with the right Realtor is crucial. Choose a professional who is dedicated to serving your needs before, during and after the sale. There are a number of part time Realtors that sell Real Estate, would you want a part time surgeon operating on you?
Thinking there is only one perfect house out there
Buying a home is a process of elimination, not selection. New properties arrive on the market daily, so be open to all possibilities. Ask your Realtor for a comparative market analysis. This compares similar homes that have recently sold or are still for sale. This will give you a broader view of the market.
Not considering long-term needs
It is important to think ahead. Will the home suit your needs three to five years from now?
Not examining insurance issues
Purchase adequate home owner insurance. Advice from an insurance agent can provide you with answers to any concerns you may have.
Making an offer with too few subjects
It is important to have subjects in your contract to purchase a home. Typically buyers only think of subject to financing (or first mortgage) and subject to a home inspection. There are also a couple other important terms such as:
- Searching title to ensure it is free of any encumbrances.
- Reviewing and approving a Property Disclosure Statement provided by the selling party.
- Obtaining home insurance or fire insurance.
- Reviewing and approving a Building Information Request which will show any outstanding permits on a property.
- If a strata title property reviewing and approving all the strata minutes, bylaws, etc.
Ensure your best interests are protected.
Not knowing all the costs involved
Early in the buying process ask your Realtor and Mortgage broker for an estimate of closing costs. Title insurance and lawyer fees should be considered and many pre-pay responsibilities like property taxes, municipal fees and fuel adjustments must also be taken into account.
Not following through on due diligence
Buyers should make a list of any concerns they have relating to issues such as; crime rates, schools, power lines, neighbours, environmental conditions, etc. Ask the important questions BEFORE you make an offer on a home. Be diligent so that you can have confidence in your purchase.
There are many important steps when purchasing real estate. Click here to review the purchase process.
Click here for a printable Buyer’s guide.