Top 10 home buying mistakes
Friday Jul 24th, 2020
It’s easy to make a mistake when buying a home for the first time. We have put together the top 10 home buying mistakes (as per the RECO) and how to avoid them:
1. Becoming emotionally invested. Know your budget and stick to it.
2. Hiring a part-time or inexperienced realtor. Hire a realtor who is knowledgeable of the market has a strong record of success and has a history of working with first time home buyers. Ask for past client references and a list of awards your realtor has received.
3. Not making your expectations clear. Communication with your realtor is so important. Your real estate agent works with a number of clients each day, each with their unique needs. Determine what services you are expecting from them and get it in writing.
4. Failing to read and understand the purchase contracts. Take the time you need to read and understand everything. Don’t be afraid to ask your real estate agent questions!
5. Assuming everything is included. Before making an offer, detail all of the items that you would like included in the purchase, including window coverings and appliances. Your realtor will let you know if the seller has indicated any exclusions on the counter-offer.
6. Forgetting about the home’s mechanicals. Find out the age of the home's systems and if any upgrades have been done. Insulation, wiring and plumbing are just as important as interior features.
7. Forgetting what's outside the walls. We've all heard it before - location, location, location. Is this a neighbourhood you want to live in? Do your research and become familiar with local amenities, schools and what your daily commute to work might look like.
8. Not doing your research. A simple internet search or a conversation with a neighbour may reveal something about the home you're thinking of buying. Take the time to look in to it.
9. Making verbal agreements. Put everything in writing. Everything!
10. Underestimating closing costs. From land transfer tax to legal fees, closing costs add up quickly. Set aside more than you'll need to save yourself some stress.
There is a lot that goes into buying your first home. Having proper professional advice can help you avoid these rookie mistakes and more!