can be a scary experience for those who do not know what to expect. Outlined in this article are 20 typical mistakes many home buyers make. To make your purchase easier and to get the best possible deal you should avoid the following 20 deadly mistakes.
1)Not understanding what you want. Take a long hard look at what you really need and want. A great place to start is by listing out everything you want in a home.
2) Choosing the wrong real estate agent. You need to find an agent who is professional, whom you respect and above all can trust.
3) Not using an experienced salesperson. The average Toronto real estate agent is involved in more real estate deals in six months than the average buyer is in his/her lifetime. Leverage their experience to your advantage, understand where deals have gone wrong for you agent in the past and do what you can to not let that happen.
4) Not signing a buyer agency agreement. A buyer's agency agreement gives you exclusive representation from beginning to end and it will not cost you a thing. As the real estate commissions are paid on the sellers end.
5) Calculate what can you afford. Find out what monthly payments you can afford. You want to push your comfort level but you do not want to be overextended.
6) Not getting prequalified or preapproved for a mortgage. With the preapprovals in place you are in a better position to negotiate. This demonstrates to the seller that you are a serious buyer.
7) Waiting too long to see a house. In Toronto good houses sell fast. If you or your agent find a home that fits your needs go and see it ASAP, do not wait.
8) Waiting too long to make an offer. If you wait to submit an offer it might be too late.
9) Buying without keeping resale in mind. Traditional homes with attractive unique features can be great investments. Stay away from oddball properties. Eventually you are going to sell, when you do you want to have broad appeal.
10) Getting emotional. Don't let emotions blind your reasoning. It is okay to become emotional about a property if it can be validated with objective information, facts and reasoning.
11) Buying the right house in the wrong neighbourhood. You have to be happy with the neighbourhood as you do not spend all of your time in the house.
12) Hide your excitement from the seller when you find the right house. If you show your excitement to the listing agent then you will weaken your negotiating position.
13) Research comparable properties. Do your research, look at other similar sales in the area. Familiarize yourself with what is happening and what has happened in the area.
14) Basing your offer on the asking price alone. Focus your offer on the value of the property not its asking price.
15) Low balling. Don't do it. There are many other better negotiation strategies. Be reasonable with your initial offer but be on the low side, you want there to be a chance that they accept it. Low balling is a waste of everyone's time it will either get signed back immediately or ignored.
16) Including extra items in the offer. If the item is not in the listing than do not include it in the offer, focus on getting the house. Then turn you attention to the other items in the house.
17) No home inspection. They will save you in the long run. You do not want any surprises after the property closes.
18) Understand the offer. Know what you are agreeing to. If a clause does not make sense to you, seek clarification.
19) Calculate all of the costs. Understand all of the different costs associated with closing a house. Your real estate agent should be able to help you calculate this.
20) Do not be impatient during the negotiation. If you do not let the negotiation happen at its own speed you will risk putting yourself at a disadvantage. Being impatient could be quiet costly.