8 Common Mistakes Buyers Make

(March 07, 2016 )

Buying a new home is a complex process that can be incredibly exciting and stressful all at once. It is essential you do your homework before you begin. I have compiled a list of common mistakes buyers make when purchasing a home. Learn from others mistakes and enjoy the whole process!

1. Searching for houses without getting pre-approved.

Most people mistake pre-approval with pre-qualification. Pre-qualification is the first step toward being pre-approved. It will point you in the right direction, giving you an idea of the price range of houses you can comfortably afford. Pre-approval essentially makes you a cash buyer, making negotiations with the seller much easier.

2. Allowing first impressions of a home to overly influence their decision.

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 judgment. Beneath the bad décor or messy rooms, these homes may actually suit your needs and offer you a structurally sound base with which to work. Likewise, don’t jump at a home simply because the walls are painted your favourite colour!

3. Skipping the Home Inspection!

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 inspector will help you enter the negotiation process with eyes wide open, offering you added reassurance that the choice you’re making is a sound one.

4. Failing to understand your rights and obligations as a Buyer in the Contract

A lack of understanding about your obligations may cause friction between yourself and the people with whom you are about to enter the contract. Make use of the resources and knowledge offered by your REALTOR® and lawyer. With their assistance, ensure you thoroughly understand every component of the contract, and are able to fulfill your contractual obligations.

5. Writing an offer based on the asking price, not the Market Value

Ask your REALTOR® for a current Comparative Market Analysis when you feel like writing an offer. This will provide you with the information necessary to gauge the market value of a home, and will help you avoid over-paying. 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.

6. Failing to familiarize yourself with the neighbourhood before buying

What amenities does the area have to offer? Are there schools, churches, parks, or grocery stores within reach? Consider visiting schools in the area if you have children. How will you be affected by a new commute to work? 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.

7. Not looking for home insurance until you are about to move

If you wait until the last minute, you’ll be rushed to find an insurance policy or run into a situation where you can’t be insured. Especially during fire season in the Boundary Area! Make sure you give yourself enough time to shop around in order to get the best deal.

8. Not recognizing different styles and strategies of negotiation

Some buyers think that the way to negotiate their way to a fair price 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®. He/she will know what strategies of negotiation will prove most effective for your particular situation.Blog entry content goes here