7 Mistakes to AVOID when Buying a Home
You’ve been saving for awhile, weighing your options, looking around casually. Now you’ve finally decided to do it – you’re ready to buy a house. The process of buying a house can be incredibly exciting, yet stressful, all at once. Where do you start?
It is essential you do your homework before you begin. Learn from the experiences of others & do some research. Of course, with so many details involved, slip ups are inevitable. But be careful: learning from your mistakes may prove costly. Use this following list of pitfalls as a guide to help you avoid the most common mistakes.
1) Searching for houses without getting pre-approved by a lender:
Do not think that a pre approval is the same as a pre- qualification. Pre- qualification, is the first step towards being pre- approved. It will point you in the right direction and give you an idea of the price range you can comfortably afford.
2) Allowing “first impressions” to overly influence your decision:
The first impression of a home has been cited as the single most influential factor guiding many purchasers’ choice to buy. Make a conscious decision beforehand to examine a home as objectively as you can. Don’t let the current owners’ style or lifestyle sway your judgement. Beneath the bad décor or messy rooms, these homes might actually suit your needs and offer you a structurally sound base with which to work with. Likewise, don’t jump at a home simply because the walls are painted your favourite colour. Make sure you thoroughly investigate the structure beneath the paint before you come to any serious decision.
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. A home inspection performed by a competent company will help you enter the negotiation process with eyes wide open. Also offering you added reassurance that the choice you’re making is a sound one and/or alerting you to underlying problems that could cost you significant money in both the short & long run. I can suggest reputable Inspectors for you to consider and will ensure the appropriate clause is entered into your contract.
4) Making an offer based on the asking price, not market value:
Ask me for a current Comparative Market Analysis. This will provide you with all the information necessary to gauge the market value of a home, and will help you avoid overpaying. What have other similar homes sold for in the area and how long were they on the market? What is the difference between their asking price and selling price? Is there 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.
5) Failing to familiarize yourself with the neighbourhood before buying:
Check out the neighbourhood and ask around. What amenities does this area have to offer? Are there schools, churches, parks, shopping and groceries within reach? Consider visiting schools in the area if you have children. How will you be affected by a new commute to work? Are there infrastructure projects in development in 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.
6) Not looking for home insurance until you are about to move in:
If you wait until last minute, you’ll be rushed to find an insurance policy that’s ideal fit for you. Make sure you give yourself enough time to shop around in order to get the best deal
7) Not recognizing different styles and strategies of negotiation:
Many buyers think the way to negotiate is by offering low. In reality this strategy may actually result in the seller becoming more inflexible, polarizing negotiations. Employ the knowledge and skills of an experienced Realtor. I know what strategies of negotiation will prove most effective for your particular situation.