As Halloween approaches, its not the ghosts, goblins and trick or treaters you need to watch out for when buying a house. Here are some things that could be really scary:
Skipping the Home Inspection: More often than not, you will receive a list of maintenance or repair items from your home inspector. If however, there is a real problem that is discovered you could be faced with something that could affect the value of your investment or worse yet, could compromise your health. A client of mine decided to have a home inspection done on a brand new home he was buying. Something was wrong with the furnace and the home inspector found it was emitting C02. Never skip having an inspection - I’d say C02 poisoning is pretty scary.
Paying the Deposit Late: That would be a breach of contract where you not only could face losing the house, especially if there is a back up offer, it also opens you to being sued for any losses incurred by the seller. I’d rather face a Vampire than the Courts.
Buying a New Truck: Why is this scary? If you’re approved for your mortgage and then buy a new vehicle, the monthly payment added to your budget could either disqualify you for the mortgage or reduce the amount you’re qualified for. Very scary if you’ve already found and negotiated on a home that is exactly what your want to find out you no longer qualify for it! Always check with your lender first before you add to your debt while you are in the process of buying a home.
Buying Without a Real Estate Agent: There is a requirement for a seller to sign a Disclosure Statement letting potential buyers know of anything they know about the property. This will reveal things such as whether or not the home had been a grow-op, if there is a latent material defect, or if there is a foundation problem. Buyers are more likely to buy a home without an agent where the property is not listed on the MLS®. Some for-sale-by- owner sellers feel less inclined to be straight forward about the Disclosure Statement or they may not provide one at all. This could prove to be the scariest scenario of them all if there turns out to be a serious problem with the home that was not disclosed. A real estate agent will be sure to get a Disclosure Statement from the seller and will help you determine the market value of a for-sale-by-owner home to ensure you are not over-paying!
Wishing you a safe and happy house-haunting experience this Halloween!
Written by Paige Ghoulson, October 2013
Paige Gregson - Century 21 Executives Realty, Vernon, British Columbia 250-308-2928 firstname.lastname@example.org