Common Mistakes that Buyers Make
Mistakes are very common in the buying process, especially amongst first time buyers. The key is to learn from your mistakes so they don’t happen again. It also can be helpful to attempt to learn from the mistakes others have made. If you have a few examples of where others have faltered, you can do your best to make sure you avoid making the same errors. I’ve put together a list of common mistakes that buyers make that are usually due to emotions getting in the way of good judgement.
Love At First Site – Falling In Love With A Home
Entering an agreement to purchase a home can be overwhelmingly emotional for many, way more than other investment opportunities. Quite simply this is due to the fact that you are choosing a home to live in for the foreseeable future. It’s very common for this to touch you emotionally, as a home is meant to be safe and provide you with a sense of security. But seeing how it combines our dreams with the realities of our finances, it can also play around with our emotional senses. And once emotions enter into the equation, it’s harder to separate the two.
The question must be asked, is it really possible to fall madly in love with a home? Of course it is! And many fall victim to a selling realtor® who may or may not have your best interests at heart. It’s important to acknowledge that love is fleeting sometimes. Once those keys exchange hands you will, without a doubt, begin to see all the flaws in your new home. No home is perfect, and if you didn’t make your choice based on your requirements, you could possibly end up with a property that isn’t right for you.
Not making sure you keep control of your purchase
There are any number of ways that you can lose control of the process. Maybe you hired an agent who isn’t able to communicate properly and figure out where you want to live. Or maybe some relatives decided to step in with a cheque and their input. Perhaps your kids need more attention and take away from the time you should be spending towards buying a home. However it happens, controlling the home buying process to reflect your needs is a critical part you should be aware of.
What happens if you are attempting to find a home in a specific school district and you don’t find a home in time? Moving your children mid-term isn’t a particularly easy task. You should also make sure you don’t have any personality clashes with your realtor®, it’s important to have an agent that is effective at communicating properly and doesn’t let their ego get in the way of your happiness.
Indecisiveness can be costly
Are you tossing a few ideas on things to do over the course of the year? Debating whether to buy a new home, start a business or maybe even travel the globe?
Buying a property needs you to make plenty of hard decisions. From deciding what your budget is to which area you want to live in, there are many major decisions to make. If you can’t make up your mind about where your life is going, it may be a sign that you aren’t ready to invest in the commitment that comes with being a home owner.
If you wondering if a better home will come along right after you close the offer you should always remember there are plenty of homes that could be right for you. At some stage you need to make a decision whether or not to pursue with an offer or leave the process.
Underestimating the responsibilities of ownership.
Renting a home really couldn’t be easier. You pay a set amount once a month and the landlord takes care of anything that happens to the property. Of course this isn’t the case when you own a home, it is now your responsibility to fix things and pay all the bills.
It’s up to you to make sure your mortgage is paid every time it’s due, haggle with city hall if you feel your tax bill is too high, and protect the home with adequate insurance in case of loss due to different hazards. If you aren’t on top of all the little things your homes needs, it’s value will drop and you will lose money.
Being actively involved in the community allows you to voice your concerns over any improvements that need to be done, or against them if you feel they don’t need to be done.
Buying real estate comes with many responsibilities that you need to make sure you are aware of, so you go into it with your eyes open.
Getting into a Home before you are ready for all that comes with it
Owning property isn’t something that everyone can handle, and some are smart enough to recognize that they aren’t ready for it. So how do you figure out if you are ready for it? If you find that you seem to be putting up a block to a certain path then it’s probably a good sign you are trying to rush into it.
The main factor that scares someone from pursuing home ownership is the amount of money it costs. If this is the case with you, look at your financial situation and try to decide if it’s something that is right for you. There are many other things you want to consider as well. As an example, quality of living might decrease if you can only afford somewhere further from work than where you currently live.
It’s important to work with a professional when you buy. We offer a comprehensive buyers program to people in the Red Deer and Central Alberta area. Please contact us for details.
Do you know how much money will be needed in order to close your deal? Besides the basic purchase price, buyers face legal fees (plus GST) and disbursements (plus GST), which are the out-of pocket expenses a lawyer/notary incurs. Then there are closing adjustments with the seller – taxes, rental income, condominium maintenance, and some utility charges. And don’t forget about the costs of arranging a new mortgage which can include application and appraisal fees. For a resale home, these “extras” can easily add 1½% to 2% onto the basic purchase price.
Do you know what needs to be done after the deal is closed? Once your offer has been accepted the work has just begun. Future steps include arranging for monthly mortgage payments and property taxes, finding the right insurance coverage, transferring your utilities and arranging for your move, among others.