Avoid These 5 Common First Time Home Buying Mistakes

By
Real Estate Sales Representative with Berkshire Hathaway HomeServices Toronto Realty

first time home buying

1 Jump starting the home search without any research

Buying a home is more than just signing a legal document and writing out a cheque. Whether you are buying new construction from a builder or an existing resale, it's important to do your research before starting the home search process. Every buyer has different objectives to meet their needs. Source an experienced real estate agent to work with to help you tailor your search and represent your best interest.

 

2  Starting your home search without a pre-approval

When I speak to first time home buyers, the first thing I ask is if they are pre-approved by a lender for the amount they wish to spend. Often times, the answer is 'yes' and that they walked into their bank and got their financial advisor to pre-qualify an amount. What buyers fail to understand is that there is a difference between a pre-qualified loan and pre-approved loan which can greatly affect the final purchase price. 

 

3 Not understanding the upfront and closing cost

Some of the FAQs I get asked by first time buyers are...

1] Does the initial deposit for the purchase goes towards the downpayment of the loan?

2] How much do I need to put aside for closing cost?

3] What is the typical range for lawyer fees?

4] What other costs outside of lawyer's fee are there? [appraisal fee, tarion home warranty, land transfer tax, adjustments]

 

4 Working with an inexperienced real estate agent

Real estate agents do more than just pulling listings and unlocking doors at showings. Choosing an experienced real estate professional can save you thousands when issues can be flagged before problems arise.  Not all real estate agents can offer the same insights, as well as raising the right questions before you move forward with a home purchase and structuring the best offer to protect your interest.

 

5 Not having professional experts on your team

Assembling the right team of professionals to work with can offer a smooth and gratifying home purchase experience [mortgage professional, lawyer, home inspector etc.] Many seasoned real estate agents already have a network of local partnerships specializing in  areas that can be tailored to different levels of the buyer's needs. 

 

The process of buying an investment property can be very different than buying a principal residence or finding land to build a home. Not all real estate professionals work the same. Do your research and choose the right real estate professional before endeavoring in your next home purchase.

 

 

 

Posted by

 

 

*******************************************************************************************

 

Contact me to find out more about Toronto Design-focused Real Estate Solutions for your needs.

 

Anne Lok, Real Estate Broker

Berkshire Hathaway HomeServices Toronto Realty Inc. Brokerage

287 Davenport Road Unit 1
Toronto ON M5R 1J9

direct: 416-799-9632

office: 416-504-6133 

 

Comments (5)

Eric Kodner
Madeline Island Realty - La Pointe, WI
CRS, Madeline Island Realty, LaPointe, WI 54850 -

Number four seems like the universal mistake, whether it's made by a first time buyer or one who should know better.

Jan 28, 2014 12:32 PM
Anne Lok
Berkshire Hathaway HomeServices Toronto Realty - Toronto, ON
Toronto Modern Real Estate

Eric - Yes, and usually when I meet homeowners who tell me their story, they find out their mistakes after their purchase.

Jan 29, 2014 01:11 AM
Kathryn Gorham
Green Key Realty - Emerald Isle, NC
Emerald Isle NC Crystal Coast

Great post, I also think number four should be branched out to a lazy agent as well.  I would much rather work with an agent who might be new to the game than one that has experience but puts forth little effort on you. Thanks for posting!

Jan 29, 2014 03:14 AM
Anne Lok
Berkshire Hathaway HomeServices Toronto Realty - Toronto, ON
Toronto Modern Real Estate

Kathryn- Good point. Agent screening is indeed important. The number of licensed years doesn't necessary mean relate to professional practice or how they work.

Jan 29, 2014 04:09 AM
Wayne Zuhl
Remax First Realty II - Cranford, NJ
The Last Name You'll Ever Need in Real Estate

Anne,

These are all excellent tips.  Any buyer should follow these guidelines.  Keep up the great posts!

Jan 29, 2014 04:45 AM