Home Buyers: Avoid These Common Mistakes!

Home Buyers Mistake #1.  Neglecting to Get Pre - Approved for a Mortgage

Imagine you've spent weeks or months searching for the perfect home.  You've scoured the MLS listings every day, went to open houses every weekend, researched online, attended seminars, went on private showings with your Realtor and finally found the perfect place. Now imagine making the offer and having the deal fall apart because your financing was not approved!  

This devastating situation can be so easily avoided by taking the time to get pre-qualified by the bank or mortgage broker. I can help by referring some trusted mortgage professionals to you if you don't know any.

  • Save time and make sure you are looking for homes in the correct price range
  • Ensure that you can remove financing subject conditions on your offer
  • Gives peace of mind not only for you, but alleviates Sellers concerns about your ability to pay
  • Gives your RE/MAX agent a negotiating edge when dealing with multiple offer situations

Home Buyers Mistake #2.  Not Knowing That Mortgage Rates are Negotiable

Its important to shop around and check out both banks and mortgage brokers to find the best rates for your mortgage. 

  • Rates are negotiable! 
  • Banks will give their best rates to customers that have other products with them, for example: RRSP’s, checking account, savings or other investments or services
  • View the posted rates as a starting point
  • Remember to ask if the bank will pay for appraisal fees
  • Read the contract terms carefully! Be leery if the rate offered is lower than everywhere else; the contract may have more restrictive terms; higher buy-out fees, penalties, payment options, less portability etc.  

Home Buyers Mistake #3.  Not Adding a Home Inspection Condition Clause to Your Offer

It can be devastating to buy your dream home and then find a hidden defect only after you've taken possession and moved in.  To avoid this costly mistake, I highly recommend that you add a condition to your offer that makes the purchase subject to a satisfactory home inspection.  A professional home inspection can reveal small and large deficiencies in the home's exterior, interior and systems.  Some problems are relatively minor, others may be deal breakers.

In most cases a home inspection is all you need, but in certain situation you may also want to invest in other specialized inspections from experts, for example you may want a structural engineer's report, insect, radon or other specialized surveys.  I can advise you on inspections you should consider.

So what happens if there are problems found?  We may be able to use the deficiencies found in the inspection as a negotiating tool to reduce the purchase price to cover required repairs or ensure the homeowner fixes the problem to your satisfaction before removing the subject clause. 

Home Buyers Mistake #4.  Trying To Do Everything Yourself 

With the wealth of information on the internet its tempting for Buyers to try to buy a home themselves and not use the services of a Licensed Real Estate Agent.  There are several reasons to use a RE/MAX agent to help you make a purchase with the least amount of problems.  

  • I have access to market data that is not available to the public, including statistical data and sold prices
  • As a RE/MAX agent I have access to the inventory of the largest real estate company in the world, so if you are looking for something particular I can leverage the knowledge of other agents in my company
  • I regularly view houses in my service area so I know what's on the market, often before the public
  • I can do a comparative analysis on the property you are interested in to ensure the price you pay is market value
  • I can offer expert advice on what to look for, what conditions to include in your offer and advise on the strategy you should take in making your offer
  • I work as your advocate and look out entirely for your best interests in the negotiations I do for you

Home Buyers Mistake #5.  Buying First Before Selling

If price is important you should always sell your present home before buying another.  It has the advantage in letting you know exactly how much money you will have available for your next purchase.  Selling your home first allows you to place fewer conditions on your purchase which makes your offer more attractive to a seller.  They often will demand more money to take a “subject to” offer which takes their home off the market.  The other advantage is if you find a terrific house, chances are others will also find it attractive and you stand to lose it if you can’t make an unconditional offer.

Home Buyers Mistake #6. Being Uninformed About the Costs of Buying a Home

I can advise you on the following costs:   legal fees, transfer tax, property taxes, new home landscaping, fencing, appliances, window coverings.

Lynn Le Drew PREC*
Lynn Le Drew PREC*
Personal Real Estate Corporation