Many buyers make some very simple mistakes that can drastically affect the outcome of their experience purchasing a new home and/or future home ownership.
These are few of the things to keep in mind once you start looking for your new home.
1. Not considering potential pitfalls of the property
You’ve found the house you love, but ignoring the crumbling foundation or the strange smell in the basement may cost you a tremendous amount in the long run. Taking into consideration the age of the house, the repairs that may be needed, and what the utilities are monthly are all questions you need to ask before making an offer.
If the house you are buying is going to need some fixing and attention, ensure you have enough money in your budget to do these fixes and upgrades.
2. Failing to budget for property taxes and insurance
While you may know the monthly payment you’ll be making on the house for your mortgage, you cannot forget the additional, not optional, costs that go with ownership such as insurance and taxes.
In Saskatoon you can participate in the TIPPS program for your property taxes which alleviate the financial stress of getting a hefty bill that is due immediately with no funds to cover it.
Most mortgage companies will require insurance on the property and on the owners. Make sure you know what you are looking at for insurance costs monthly and shop around for both.
3. Assuming your first offer will get accepted
The buying and selling of Real Estate is a negotiation. Most buyers make an offer that is counter offered. Take this into consideration if your first offer is at the very top of your budget, as you are most likely to get a counter offer from the seller.
4. Skipping a home inspection
Home inspections are another way of ensuring your purchase is a worthy one and that you aren’t buying someone else’s problems. While the majority of lenders will require an inspection, in some instances they won’t. Never skip having a complete home inspection done, should the inspector find some detrimental issues you will now have an opportunity to handle them before you sign your final documents.
5. Rushing ahead
Buying a home is rarely a quick process because you are working with your schedule and the schedules of many others, your realtor, the seller, their realtor, appraisers, home inspectors, etc. Deciding to skip any of these critical steps can cause a world of heartache and financial strain down the road.
Additionally, if you are pushing to close the deal too quickly, you may miss some critical problems with the deal, the property or the small print on contracts that can cause major problems later.
6. Failing to include a contingency clause in the contract
Always ensure you include caveats in your offer such as subject to bank approval, appraisal and home inspection reports. Should the appraisal come in far lower than the asking price, many lenders will not finance the home. If you have a home inspector that identifies a structural flaw or a health issue such a mold you will be grateful that you can break the contract.
7. Failing to find a Realtor who is looking out for your best interests.
Friends and family will often recommend a Realtor to you, but at the end of the day, it is all about relationship and trust. Ensure you have chosen a Realtor who truly has your best interests at heart and who you feel understands your needs and what you are looking for.
Realtors guide you through these processes and help make sure that you are addressing all these questions.
To know more about how a Realtor can help you, in Saskatoon and Warman, contact Marla Janzen at www.marlajanzen.ca.