KAMLOOPS REAL ESTATE
HOME BUYER'S GUIDE: COMMON BUYING ERRORS
Shopping for a new home is an emotional experience. Some buyers get caught up in the excitement of buying a new home and tend to overlook some things in the details and fine print. The results tend to be that their home purchase turns into a more expensive process. Common buyer errors tend fall into three categories: paying too much for a home, losing a dream home to another buyer, or simply buying the wrong home. When you have a systematic plan before you shop, you'll likely avoid these costly errors! Here are some things to look out for with 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 good deal? Without research on the market and comparable homes, you could lose thousands of dollars. Before you make an offer, be sure you have researched the market. A REALTOR® can offer an unbiased opinion on the value of a home based on market conditions, condition of the home, and the neighbourhood. Without knowledge of the market, your offer could be too much.
Buying a Mismatched Home
What do you need and want in a home? It sounds simple yet clearly identifying your needs and bringing an objective view to home shopping leaves you in a better position. Plan ahead and use a needs list guideline for every home you view.
Before you sign any document, be sure the property you're 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 attached to the property.
Before the purchase is completed an updated survey is essential. This report will indicate boundaries and structural changes like additions to the house, a new swimming pool, neighbour's new fence which could be extending over a boundary line, etc.
For $300 - $500 a professional inspector will conduct a thorough inspection of the home. This ensures you'll have an idea of the cost of future repairs. Your REALTOR® will advise that you make the completion of the sale subject to a favourable report.
Shopping without Pre-Approval
It only takes a few hours to get mortgage pre-approval. When you're shopping for a home this gives you more power as a seller is more likely to consider an offer from a serious buyer.
Overlooking Additional Costs
Besides the funds for the purchase of a home, you’ll need funds for miscellaneous costs such as loan fees, insurance, legal fees, surveys, inspections, etc. This will help you understand the total cost of buying a home.
Rushing the Closing
Before you sign, ensure that all documentation clearly reflects your understanding and conditions of the transaction. Has anything been forgotten or overlooked? Don’t rush. You could lose money, financing, or even the sale!