Buyers are often so focused on finding the desired property within their budget that they make unnecessary and costly mistakes. Here are five common mistakes home buyers make to watch out for:
1. Not Hiring a Qualified Home Inspector
Just like any other profession – no two Home Inspectors are created equal. Always be sure to research a variety of professionals. Find out how they report back results and determine their level of knowledge with the type of home they are inspecting. You want someone who will take detailed notes and pictures, provide guidance, and take the time to explain the various concerns/benefits of the home.
2. Ignoring the Value of the Neighbourhood
The neighbourhood in which a home is located in is often ignored. The focus is usually on the features of the home, but what about access to transit, schools, shops, and highways? How do the other homeowners maintain their properties? Is the area in a state of growth, stability, or decline? Does the house conform to the general area? Is it the worst or best house on the street? All of these factors can impact not only the current market value but its anticipated future value.
3. Getting Caught up in Multiple-Offer Situations
A number of local real estate markets across Canada are experiencing high buyer demand with relative lack of active listings. Typically, this trend will push home prices upwards. This is often compounded by homes that are being priced below market value, and sellers not accepting offers until a specific date. The purpose of these selling strategies in a hot sellers’ market is to encourage multiple-offer situations. All too often, the end result is a buyer paying too much for a home. As a homebuyer, be prepared to walk away from such a situation. Allowing your emotions to rule your thinking may end up costing you more money than you should be otherwise paying for a home.
4. Having Search Criteria that is too Broad
Home buying should involve the process of elimination, not addition. It’s normal to begin the process with a fairly broad set of criteria in terms of home features, location and cost. Once you’ve had the chance to view a couple of homes and build your knowledge base, then it’s time to make some decisions. The more focused and efficient your search is, the more you’re likely to find the home you actually want. When search criteria are too broad, we tend to get overwhelmed and have difficulty making meaningful decisions.
5. Not Hiring a Professional REALTOR®
As in the case with every professional service provider, not all REALTORS® are made the same. Do your homework. Review REALTOR® websites, ask friends and family and interview multiple Real Estate Sales, Professionals. A referral to a reputable REALTOR® can be a great source, but just because your good friend has a parent in the business doesn’t mean they’re a good fit for you.
Keep these five common mistakes home buyers make in mind when you are looking for your next home.