Common Mistakes made by Buyers:
There are many mistakes that Purchasers may make when choosing to buy a home. The following is a list of commonly made mistakes that have been made by other Purchasers when buying a new home.
- Not knowing the proper value of the home you wish to purchase: Remember to ask about for a Current Market Analysis of the home you are considering purchasing. A Professional should provide you with his analysis prior to you submitting an offer to ensure that you do not overpay, particularly if you are new to the area and are not sure of the values in the new neighbourhood.
- Not knowing how to negotiate properly: Your offer should be reasonably close to what you are willing to pay but leave you enough room to negotiate. Ultimately, you determine the price since you are signing, but the price should be reasonable and based on what similar homes sell for in the area. There is no sense in offending the Vendor with an unreasonably low first offer.
- Not getting a proper home inspection done: You may want to contact a couple of home inspection companies before you buy so that you can choose one quickly once your offer is accepted. If the real estate market is hot or if this is a great listing, the Vendor may not allow you to tie up the home for very long to get it inspected. It is always better to be prepared. Take the time to look at the home and the way it has been built so that you don't get any surprises later on that may cost you money.
- Not understanding the contract completely: Remember to put everything in writing no matter how small the detail. If the Vendor said he is leaving the dog run, put it in the offer. Remember, if it is not in writing, it is not enforceable. Don't be intimidated, most buyers only buy a house every 5 to 10 years so take your time. You can always make the offer conditional upon your lawyer's approval if the Vendor agrees to this condition.
- Failing to be pre-approved for financing: You should know exactly how much you can afford to buy before you make the offer. Getting pre-approved will save you time when it is critical. If you present an offer, and can not remove your conditions in time, the Vendor may sell to someone else. If your banks does a complete pre-approval including reviewing your employment information and your personal credit history, you will be in the position to remove your financing conditions much more quickly. To be safe, you should always make your offer conditional on financing even if you are pre-approved since most pre-approvals are time limited and conditional upon completing the entire credit application.
- Don't make irrational decisions based on emotions: If you lose a house because of something beyond your control, it is only human nature to overpay to ensure that you get the next home.