Real Estate Canada- The decision to purchase a home for the first time in is the biggest decision people will ever make for most people. There’s so much to consider when purchasing a home: Which neighborhood to choose? Which size of the house do you want? And most importantly, Which features do you want in your new home?
You need guidance to answer these daunting questions and to avoid major mistakes. Everyone makes mistakes, but when it comes to purchasing a home, a small mistake can lead to heavy costs.
Let’s look at a few of the most common mistakes people make and how to avoid them to find the right home, the right way.
Going out of your budget to purchase unaffordable property
In their over-excitement, first-time buyers generally make the mistake of choosing a home that is beyond their monetary capacity. Thus, before starting the purchasing process, it is important to decide how much can
you afford to buy and create a thorough budget that considers all recurring expenses and one-time costs related to purchasing a home.
Your budget will help you target how much cost you can afford and which neighborhoods to choose. It will also prevent you from over-purchasing and become cash-strapped later.
2. Real Estate Canada- Choosing the wrong agent
Choose a real estate agent who works with your best interests in mind. He should be a qualified agent who has worked widely with buyers because he has to help you find a house that fits your needs both physically and financially.
If your agent is constantly forcing you to overspend or go beyond your limits, then it’s time to consider a different agent.
3. Ignoring the due diligence
The important principle when purchasing a house is to get everything in writing. Buying a home offer is a legally binding contract, and that contract should have everything in writing with all details. Check all the details before you sign it. You should not rely on a verbal agreement or a handshake. Instead, get all your requests duly written on the contract agreement. You may love the appliances and want to keep them or you may want the window coverings to stay, get everything in writing.
4. Thinking that your home loan will be easily approved
Buyers sometimes think that their loan amount would be approved within days. They think that they will apply for any loan amount and the bank would approve their application and disburse the credit within days. It’s not true and it is wrong to think this way. There are a lot of formalities before granting you a housing loan. Your personal eligibility would be checked, banks will then assess the property you want to buy and finally decide the loan amount that they would be going to lend for that property.
5. Real Estate Canada- Selecting the wrong house
Due to housing finance, people can purchase property right at the initial stage of their lives. Many purchasers don’t consider old age, sickness, and disabilities while they choose a home. In consequence, they have to sell their first property towards the late part of their lives, to purchase a better home. For example, not having an elevator in the apartment may no bother you while you are young and can swiftly walk up the stairs. However, the same is not true when you are old.
6. Doing everything on your own
Purchasing a home is a lengthy process, which involves many legal and financial aspects. Hence, it is recommended to hire a professional to perform tasks of complex legal or financial knowledge. Hiring a real estate agent in Canada to help you find a home within your budget would save you a lot of time and effort. Similarly, you may need to hire a lawyer to see all the legal aspects related to the property. You may also need to hire a chartered accountant to file your taxes and claim the rebates available.
7. Not considering the neighborhood
When purchasing a home, focus on the surrounding area as well. Of course, you can’t predict the future of your chosen neighborhood, but inquiring about or researching about the neighborhood can help you avoid unpleasant surprises.
8. Getting influenced by the market
Never get influenced by the market more than what you need.
Of course, the market moves in cycles. Ups and downs favoring sometimes buyers and sometimes sellers when prices are booming.
However, waiting for the right time is not right for you. If you know your budget, don’t wait for short-term market conditions to influence your lifestyle decision.