Mistakes To Avoid When Buying - One Percent Realty

Make sure you do your homework before you buy the house. Use the following list of pitfalls as a guide to help you avoid the most common mistakes.

1. Searching for houses without getting pre-approved by a lender

Get pre-approved by the bank or mortgage broker before you put an offer. This way you will not waste to look for houses that are not in your price range. Pre-qualifying helps you narrow your search criteria by knowing how much you can afford. This will make negotiations with the seller much easier too.

2. Don’t make your decision to buy based only on first impressions

Many people decide to buy a house based on first impressions. Look beyond this, and think if the house is suitable for your needs. Make your decision based on your judgement.

3. Failing to have the home inspected before you buy

Buying a home is a major financial decision. To protect your investment, hire a home inspector to inspect the house before you buy it. This will reassure you that the house is sound, and it will point out any repairs that the house will need. This is an important information that will save you money in the future. Your realtor will make sure the home inspection clause is entered in the contract.

4. Not knowing and understanding your rights and obligations as listed in the Offer to Purchase

Your realtor will explain the rights and obligations to you.

5. Making an offer based on the asking price, not the market value

Ask your Realtor for a Comparative Market Analysis. This will provide you with the information necessary to see the market value of a home, and will help you avoid overpaying. What have other similar homes sold for in the area and how long were they on the market? Is this house priced right?

6. Failing to familiarize yourself with the neighbourhood before buying

Check out the neighbourhood you’re considering before you make the offer. Find out about the amenities in the area: schools, banks, parks, grocery stores, churches. How long will be your commute to work?How will you be affected by a new commute to work?

7. Not looking for home insurance until you are about to move

Give yourself enough time to shop around in order to get the best deal for your insurance.

8. Not recognizing different strategies of negotiation

Many buyers think that the way to negotiate their way to a fair price is by offering low. However, in reality this strategy may actually result in the seller becoming more inflexible. Your realtor will know what strategies of negotiation will prove most effective for your particular situation.

9. Not shopping for mortgage rates

Shop around for the best mortgage rates. Be aware that mortgages rates are negotiable. The time spent finding a better rate can save you thousands over the life of your mortgage.

10. Failing to hire a professional real estate agent

Make sure you hire a professional realtor. It doesn’t cost you anything and you get professional services to help you with your home purchase. Your realtor will help you find the house of your dreams, will give you advice, help with the offer and negotiations, etc.

11. Not knowing all the closing costs

Some people make the mistake of not finding out which are all the closing costs before they buy the house. Consider the following closing costs: property transfer tax, home insurance, property tax, legal fees, home inspection fee, moving costs.