10 Mistakes Buyers Make when Buying a Home
- Making an offer on a home without being prequalified. Don't waste your time putting offers on houses you cannot afford. Speak to your bank or mortgage broker and find out what your budget really is.
- Buying a house before selling your current one. Settle up with the old before welcoming the new. You will save yourself potential financial hardship in case if your current house doesn't sell before the closing of your new transaction.
- Limiting your search to open houses, ads and the Internet. Many houses advertised in the paper, magazines or Internet have already been sold. Contacting a Re/Max Realtor is your best course of action as they have up to date information that is unavailable to the general public. They are your best resource to finding the home you want and deserve.
- Visiting only once. Make sure you visit the home you are considering to buy at different times of day and week to get a feel for the neighbourhood. Many open houses take place on Sunday afternoons when the noise levels are at the minimum. Do you know what the neighbourhood is like at 6 o'clock on Wednesday evening?
- Not investigating neighboring properties. Do you know who's next door?
- Not having a home inspection. Trying to save money today can end up costing you tomorrow. A qualified home inspector will detect issues that many buyers will overlook.
- Not making an offer conditional upon securing financing. Many buyers think that just because they are pre-approved they will have no problem securing the funds they need to buy the home. Even though the buyer is approved, the property might not approve once lender's appraisal is in. You could lose your deposit in this situation.
- Not buying mortgage insurance. Advice from an insurance agent can provide the buyer with answers to any concerns they might have. The home might have knob and tube wiring which might be difficult to insure. Always get a quote and purchase adequate insurance.
- Not knowing total costs involved in home buying. Ask your Realtor or lender for an estimate of closing costs. There are many extra expenses that buyers might not consider that add up quickly such as Land Transfer Tax, legal fees, appraisal fees, CMHC insurance (in case of high ratio mortgages), home inspection costs etc.
- Rushing the process.
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