Tuesday, January 28, 2020 / by TeamSamKhangura & Associates
5 Mistakes First-Time Home Buyers Make
Let's face it: buying a home can be complicated. Challenges are bound to arise during the process, and how you deal with them could mean the difference between a highly-successful purchase and one that leads to regret. Luckily, there are steps you can take to pave the way towards a great outcome. Some of the most crucial involve knowing what not to do.
If you're ready to buy a home, here are five major missteps you should avoid...
1) Forgoing pre-approval
In an attractive housing market like Toronto, sellers often receive multiple offers. To make an impression, you need to ensure your bid stand out. While offering a sizable chunk of change is usually the key to success, steps that highlight your dependability can also work in your favor. That's where mortgage pre-approval comes in. During this crucial step, a lender will go through your information (from your credit score to your income taxes) and let you know how much financing you're likely to receive. While many buyers skip this step, they could be putting themselves at a disadvantage. Sellers feel more comfortable dealing with someone who's committed to buying—and financially prepared to do so!
2) Being overly picky
Every home has flaws. For buyers, the challenge is figuring out which ones constitute deal breakers. If you'll need to replace a home's roof and electrical system, it may make sense to walk away. But all too often, buyers are turned off by small issues that can be easily remedied. Let's say the property you're looking at is basically your dream home—apart from the squeaky bedroom door and a few outdated appliances. In that case, you might seriously regret not making an offer. Remember that many repairs cost pennies in comparison to the price of a home—and you might even be able to negotiate with the seller to get the work done.
3) Not looking around
Just as some buyers focus on faults, others overlook them. If you fall into this category, you may find yourself wanting to buy the first home you tour. Just remember that a bit of comparison shopping can help confirm that you've found your ideal living space. The exception, of course, is if you find a home that really is too good to pass up—at a fantastic price. If that happens, you should still talk to your agent about how to protect yourself if you're planning to make a rushed purchase. And if you really like a home, but you're not 100 per cent sold? You can always keep it in mind while you continue to do a bit of looking around.
4) Falling for staging
Staging is meant to make buyers see the very best in a home. A beautifully-staged living space will feel stylish, sophisticated, and inviting. It should be a place you can easily imagine as your own—just don't forget that it's been set up by a professional. The furniture and decor you see almost certainly won't be included when you buy the home. To make the smartest purchase possible, focus on the aspects that can't be changed easily. That means things like square footage, layout, age, and condition.
5) Failing to find the right agent
One of the biggest mistakes buyers make is assuming that all real estate agents are the same. That couldn't be further from the truth. To set yourself up for success, look for a professional with in-depth knowledge of your neighborhoods of interest in GTA. They should also have local market expertise, strong negotiation skills, and the personality to work well with other sellers and agents. Last but certainly not least, your agent should be someone you feel comfortable with. Your best bet is to use the interview process to find someone who's a great fit for you!