Mistakes first Time Home Buyers Fall Victim too Continued!
Calling all First Time Home Buyers out there! If you're considering buying your first home, you probably want to do a bit of research. Perhaps you'll talk to friends and collegues about potential areas to live in and prices regarding the process. However, that is not enough. You need a much more strategic plan to get that dream house you always wanted. Continuing from our previous "Mistakes First Time Home Buyers Fall Victim too" Blog, below are more common mistakes first home buyers commit and tips on how to avoid making these errors:
5. You Do Not Ask For Comparables:
A good way to avoid overpayment is to request exactly what you would like to see. If you're shopping for a three bedroom home with two bathrooms, ask to see the houses that sold that match these criteria, then start expanding your search out so that you make a good assessment of the property and area. A good realtor will happily accomodate these requests and help contextualize the rationale behind the sale prices!
6. You Do Not Get Pre-approved Mortgage
Getting a pre-approved mortgage is so simple. You can even do it online. However, there are buyers out there who haven't been pre-approved for a mortgage but have already started their house shoppong. For many, the reason is they want to see what's on the market. But what if your find the perfect home only to lose it because you don't have your financing in place?
7. You Do not Bother With an Inspection
There was a point in time where any buyer who didn't get a home inspection was considered foolish. These days, however, a request for a home inspection can often mean the difference between winning a bidding war and returning to the house hunt. In a buyers market, where sellers scramble to attract buyers, always make sure you include an inspection as part of your offer. The $300-$800 you pay is well worth it as, very often, inspectors will reveal maintenance issues that need to be dealt with before they become major problems!
8. You Forget That Everything is Negotiable
While price is set in most real estate transactions, you cannot discent the other terms. Facts like closing dates, fixtures to include or exclude, and maintenance or repairs to be completed before closing day are all up for negotiation. If you find yourself really stuck on one term, examine your purchase contract. Is there another condition that you can be flexible on? If so, let it go. Very often the best deals are the ones where neither party walks away feeling like they won, but instead, walk away feeling like they negotiated well!
9. You Get Ambushed By Closing Costs:
When you sign and finalize a purchase and sale agreement, the down payment and purchase price are not the only two costs to take into consideration. As a buyer, you will have to factor in other closing costs. A short list of what to consider includes:
- Land Transfer Tax
- Mortgage Set-up costs (which can include a mortgage related approval, as well as, mortgage desault insurance premises you're putting down less than 20% on the home)
- Home insurance premiums
- Adjusted utility and property tax costs
- Legal Costs
- Title Insurance
To access our previouse blog on Mistakes First Time Home Buyers Fall Victims too, click here!
Have Questions regarding Real Estate? The Iris and Evelyn team are here to help! With their countless years of buying and selling Real Estate Properties, their experience and knowledge can help you make the right choice!
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