Shopping for a home for the first time can be a very stressful experience. Not only do you want to find the right home for you and your family, you also want to make sure the price is right and that you won't end up losing money on this big investment. And if you're just starting out you might still be feeling the sting from paying for wedding caterers, Mississauga commuting, and high priced rent. Below, we talk about some of the most common errors people make when they go out shopping for a home.
Failure to attain pre-approval. By far the most common error made by first time buyers is neglecting to apply for a mortgage before they go out shopping. Pre-approval means you know how much money you have to work with, and it will also mean you can speed up the buying process when you do find that perfect home. Think of it like any other purchase. You wouldn't sign your spouse up for a fantasy adult hockey tournament vacation without making sure the cheque wouldn't bounce, right?
Assuming location characteristics. Another big mistake many home buyers make is assuming that what they have heard about an area is truth, and refusing to look there because of that information. A good example is downtown Toronto real estate. Over the years, a number of rumours have gone around about homes in Toronto's core. They have been called rundown and lately there is a tendency to emphasize their high prices. Or, if the home is cheap, you'll be in a crime district or right next to a factory that makes round slings. The truth is that no rumour can apply to every home in every part of a location. There are some high-priced neighbourhoods in Toronto, but there are just as many where you can find a nice home for a reasonable price. It might even have landscaping Brantford or other smaller areas would be jealous of. These homes are not rundown, just unknown, and the savings in terms of transportation can be amazing. Never take hearsay as gospel truth when shopping for a home!
Neglecting the home inspection. The latter stages of home shopping are often where buyers make mistakes when it comes to price. You don't want to pay too much for a house that is going to need expensive repairs, but you often do not see that need on the surface. Using a home inspector to take a look at the house before you buy will give you a better idea of the home's worth and put you in a better bargaining position. You'd hate to figure out all of your finances with management software, BC real estate lawyers have been paid, and then you find out you have to replace to roof or furnace.
One way to be sure that you avoid all the common home shopping errors is to sign up for a first time homebuyers' seminar. These courses are held by real estate brokerages and can really help buyers understand the shopping and buying process. In the end, all the knowledge you can accumulate will help you in making the best investment choice possible when it comes to your new home.