Avoid The Most Common Buyer Errors
Shopping for a new home is an emotional experience. It’s also time
consuming and comes with a myriad of details. Some buyers, however,
caught up in the excitement of buying a new home tend to overlook
some items. Their home purchase turns into an expensive process.
These errors generally fall into three areas:
Paying too much
Losing a dream home to another buyer
Buying the wrong home
When you have a systematic plan before you shop, you’ll be sure to
avoid these costly errors. Here are some tips on making the most of
your home purchase:
Bidding without sufficient information
What price do you offer a seller? Is the seller’s asking price too
high? Is it a deal? Without research on the market and comparable
homes, you could lose thousands of dollars. Before you make that
offer, be sure you have researched the market. A professional
realtor, can offer an unbiased opinion on the value of a home, based
on market conditions, condition of the home and neighborhood.
Without knowledge of the market, your offer could be too much. Or
worse, you could miss out on a great buying opportunity.
Buying a mis-matched home
What do you need and want in a home? Sounds simple. Yet, clearly
identifying your needs and bringing an objective view to home
shopping, leaves you in a better position. Sometimes, home buyers
buy a home that is too large or too small. Perhaps they didn’t
consider the drive to work, the distance to school, or the many
repair jobs waiting for completion. Plan ahead. Use your needs list
as a guideline for every home you view.
Before you sign any document, be sure the property you are
considering is free of all encumbrances. As part of their services,
a realtor can supply you with a copy of the title to ensure there
are no liens, debts, undisclosed owners, leases or easements.
Before the purchase is completed, an updated survey is essential.
This report will indicate boundaries and structural changes
(additions to the house, a new swimming pool, neighbor’s new fence
which is extending a boundary line, etc.).
For $300 - $700 a professional inspector will conduct a thorough
inspection of the home. This way, you’ll have an idea of the cost of
future repairs. Make the final contract subject to a favourable
Shopping without pre-approval
It only takes a few days to get financing pre-approval. When you are
shopping for a home, this gives you more power. A seller is more
likely to consider an offer from a serious buyer.