We work with a lot of buyers every month. When they walk through houses, discuss their desires and finally take the plunge, we're right there beside them, trying to help however we can.
That means we're often talking buyers out of the same mistakes over and over again.
Buying a new home is a complicated process, with huge stakes on the line – and most people only do it a couple of times in their life. So, it's no wonder the same mistakes keep creeping up. To help you avoid the most common mistakes, we've created a list of easy-to-avoid slip-ups that will make the buying process (and the living afterward) much nicer.
The six most common buyer mistakes
Not getting pre-approved
This is a recipe for heartbreak. Not only will it make the buying process take longer, opening the door to other buyers while you're stuck at the bank, but you can also end up unable to get a mortgage that covers the asking price of the home you've decided to buy. Either way, you risk losing the house you want.
You see the house of your dreams, you fall in love, then you see the price tag. Of course, it's heartbreaking to walk away from the perfect home in the perfect neighbourhood, but overspending is even worse. It changes your dream home into a leach that siphons off all your disposable income, leaving you resenting your purchase.
Not planning for other costs
If you've never bought a home before, you may not be aware that there are a variety of costs associated with buying a home. Closing costs, appraisals, property taxes, inspections, legal fees and of course the downpayment that has to come straight from your own pocket all add to the final purchase price and don't come out of the mortgage you got pre-approved for. (You did get pre-approved, right?)
Cutting the home inspection
This is one of the above-mentioned extra costs, and for many homebuyers, cutting it is a simple way to save a little cash in the transaction. But, no matter how much you save on skipping the home inspection, it isn't worth it. Home inspectors can find problems that even the home-owner didn't know about. These problems can change the value of the home, and even your decision to buy it.
Undefined goals and needs
The last thing you need after moving into a new home is buyer's remorse – which is simply the sudden, painful realization that what you bought isn't what you want. The solution to this very real problem is to fully outline your wants and needs long before you even start looking at homes. But, because this is a long, often arduous, process, we often see buyers skipping this step, figuring they'll 'know it when they see it.' But, the payoff for those long discussions and hours spent listing out exactly what you need, want, and want to avoid, pays off big in the long run.
Making lowball offers
It's tempting to see how low you can get your buyer to go, but the consequences of lowballing aren't worth it. Though you may see no harm in sliding in an extremely low first offer, the seller is looking not just at your offer, but possibly many more. So, while you sit expecting a counter-offer, they may have just ignored your initial offer entirely in favour of another buyer who looks to be a better prospect.
Helping you avoid high-cost mistakes
With the right realtor, and an open mind, you can avoid these common mistakes (and others) as you search for your dream home. Even if you've just started thinking about buying a new home, contact us and we can help set you up for success.Posted by James Rea on