Are you a first time home buyer? You’ll probably find that buying your first property is an exciting, challenging and (at times) frustrating process. Life’s really too short to learn from your own mistakes, so here’s a compilation of five big mistakes that new home buyers make that you can avoid:
Getting Incorrect Financing
Financing is probably the the most important thing you need to understand when it comes to your home. Whether you’re in the market for an investment property or a primary residence, remember: a house is not just a home, it’s a home and an investment. The wrong financing choice can cost you tens of thousands of extra dollars. Interest rates, terms, and amortizations – you need to learn and understand these things! Talk to a mortgage advisor to find out what’s available and what’s going to work best for you.
Skipping a Home Inspection
What I mean by skipping a home inspection is two-fold: 1) not getting a home inspection at all, and 2) skipping being there when you’re getting a home inspection done. You’re just as accountable as your home inspector and it’s important to be present and prepared. What kind of things should you be looking for? First and foremost, be logical while you walk though the home with the home inspector. They have a checklist and it’s basically their job to go through it. Your job is to be there, be on top of extra items, and to ask questions. For example: Why is that wall bowing out like that? Why is there dampness in the basement? Why doesn’t this door close properly? Why does the attic smell like mold?
Not Doing Enough Research
Not doing enough research is a big no-no when it comes to purchasing a home. It’s very important that you understand the neighborhood and understand the property. If you don’t do your research prior to putting in an offer, you might find later on (for example) that there’s no public transit nearby, or there’s no elementary school in the surrounding area, which is why people are moving out. Make sure that you are satisfied not only with the property itself, but also with the other factors involved. A good real estate agent will provide you with all of this information.
Thinking Short Term
Some people buy a house thinking they’ll live there for a short period of time. For example, maybe you got a contract job and just want to live here for now and then think of something else later. Remember, buying and selling a property is expensive. And what makes it a good investment is having a long-term strategy so that you can amortize all the costs involved across the longer period of time and get some of them back in appreciated value. Think of the long term value of a property, even if you think you will only be there for a few years.
Not Having a Support Network
If it’s your first time buying a property – you’re going to need some help. What I mean by having a support network is taking the time to talk to someone that’s done something that you’re about to do. Talk to a parent, a friend, or a sibling that already owns a home or who has moved a few times. A good real estate agent can act as a resource for the first time home buyer, they will have access to additional services you will need during the home buying process like a mortgage agent and a home inspector.
Overall, the most important thing to take away from all of this is don’t make a quick decision. Just think it through. Everyone feels like there’s a rush and there’s pressure. Maybe you were beaten out on the last house, or you waited too long and someone else put in an offer, or there was a bidding war. Just remember there is more than one appropriate property for your needs and you will get one eventually!
If you are looking to purchase a home in the Vaughan area, feel free to contact me for an in-depth community profile and market analysis.