Mistake #1. Not Pre-Qualifying for a Mortgage
Before you begin house hunting take the time to get pre-qualified by the bank or mortgage broker. This can save you hours of searching for homes in the wrong price range or worse, putting in an offer on a home and then finding out you don’t qualify for financing. Pre-qualifying gives you peace of mind, helps narrow your search criteria and most importantly, gives your agent a negotiating edge by being able to alleviate the sellers concern over financing. The latter is especially important should a competing offer surface.
Mistake #2. Not Shopping For Mortgage Terms
Rates are negotiable! (generally) Banks will sharpen their pencils to get your business especially if you have a good credit rating and bring other business to them e.g. RRSP’s, general account, savings etc. Posted rates should be viewed as a starting point. You need to know what the best rate is and this is usually done by getting competitive quotes. Also, ask whether the bank will cover appraisal fees, buy-out fees, penalties, payment options, portability etc. The time spent here can save you thousands of dollars over the life of the mortgage.
Mistake #3. Not Getting Professional Inspections
Nobody wants to purchase a home only to find out later there are defects, latent or otherwise. Ensure you obtain inspections where needed e.g. home inspection, structural engineer, insect, radon etc. If the inspection identifies deficiencies you may be able to negotiate the purchase price to cover required repairs or make your satisfaction of the inspection subject to the homeowner remedying the problem. Your agent (cough, cough, me) can advise you on inspections you should consider.
Mistake #4. Not Using A Professional Real Estate Agent.
Your agent can help you make a purchase with the least amount of problems. They can ensure the price you pay is market value or less. They can offer expert advice on what to look for, conditions to include, negotiation strategy etc. After all, they partner with you to not only protect your interest but to maximize your investment.
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.
Mistake #6. Not Knowing The Full Cost Of Purchasing a Home in BC
Know all the costs associated with your purchase. Consider the following costs: legal fees, transfer tax, property taxes, new home landscaping, fencing, appliances, window coverings.
Now, if you, like many of my clients wanted to keep out of all the trouble that comes along with high-stakes Real Estate transactions and partner with a seasoned sales practitioner who will be the difference maker in getting you a "great" deal VS a "good" deal, reach out for a chat. I don't take on every client so it will give us a chance to see if were a fit OR maybe were not. Either way I can help point you in the right direction so you can navigate the mercy waters that are Real Estate.