6 MISTAKES HOME BUYERS MAKE

I get phone calls from potential home buyers every day, asking us to send them listings so that they could make choice for their dream home. I used the word ‘potential’ because I don’t really know these people are qualified to buy a home or not. That is why I stress on talking to a mortgage professional first rather than wasting time looking for the houses which they can’t put offer on.\n\nIn this market situation, I highly recommend that all home buyers should avoid making following mistakes while buying a home\n\nMistake #1. Not Getting Pre-Qualified for a Mortgage\n\nBefore looking for your next home take the time to get pre-qualified by the bank or mortgage broker you choose. This can save you hours of searching for homes in the wrong price range or worse, purchasing a home and then finding out you don’t qualify for financing. Pre-qualifying gives you peace of mind; helps narrow your search criteria and most importantly, gives your realtor a negotiating edge by being able to alleviate the sellers concern over financing. It is especially important when there are competing offers on a property.\n\nMistake #2. Not Shopping For Mortgage Terms\n\nRates are negotiable! Banks will sharpen their pencils to get your business especially if you have a good credit rating and bring other business to them e.g. RRSP’s, general account, savings etc. Posted rates should be viewed as a starting point. You need to know what the best rate is and this is usually done by get competitive quotes. Also, ask whether the bank will cover appraisal fees, and about buy-out fees, penalties, payment options, portability etc. The time spent can save you thousands of dollars over the life of the mortgage.\n\nMistake #3. Not Using A Professional Real Estate Agent.\n\nYour real estate professional can help you make a purchase with the least amount of problems. He or she can ensure the price you pay is market value. They can offer expert advice on what to look for, conditions to include, negotiation strategy etc. After all, they work for you. Every day I come across people who have not used professional realtor and they end up buying a property about which they were not given enough information.\n\nMistake #4. Not Getting Professional Inspections\n\nNobody wants to purchase a home only to find out later there are defects, latent or otherwise. Ensure you obtain inspections where needed e.g. home inspection, structural engineer, insect, radon etc. If the inspection identifies deficiencies you may be able to negotiate the purchase price to cover required repairs or make your satisfaction of the inspection subject to the homeowner remedying the problem. Your Century21 agent can advise you on inspections you should consider.\n\nMistake #5. Buying First Before Selling\n\nIf price is important you should always sell your present home before buying another. It has the advantage in letting you know exactly how much money you will have available for your next purchase. Selling your home first allows you to place fewer conditions on your purchase which makes your offer more attractive to a seller. They often will demand more money to take a “subject to” offer which takes their home off the market. The other advantage is if you find a terrific house, chances are others will also find it attractive and you stand to lose it if you can’t make an unconditional offer.\n\nMistake #6. Not Knowing The Full Cost Of Home Buying\n\nKnow all the costs associated with your purchase. Consider the following costs: legal fees, transfer tax, property taxes, new home landscaping, fencing, appliances, window coverings.\n\nI hope this information will help home buyers. Good luck to you for your next real estate purchase!\n