Okanagan-Shuswap Common home-buying mistakes
Here are the most common mistakes that real estate buyers make:
- Failing to use the services of an experienced realtor. Some buyers avoid using a realtor falsely believing it costs them money. Some think they can negotiate a better deal directly with the seller or seller's agent. An experienced realtor can use their information network sources to select from a wider pool of houses (especially those just listed) and also use their experience from many successful negotiations for your benefit - at no charge to you! The buyer's agent can be paid out of the commission paid to the seller's agent by the seller.
- Not knowing who the agent represents. Buyers should understand for whom the agent helping with the house hunting is actually working. The agent may be representing the seller. If you are unsure, ask for clarification.
- Failing to pre-qualify for financing before shopping Knowing how much you can comfortably afford will ensure you are looking in the right price range and prevent later financial and emotional strain. If you got an interest rate guarantee, you are protected when rates fluctuate and know that your projected monthly payments do not suddenly jump.
- Failing to assess the market before making an offer. Before you make an offer to purchase, you should review the market value for similar homes in similar neighborhoods to ensure you do not overpay. Your agent should also explain recent trends in the differences between the asking and selling prices. This is the same information the seller uses when deciding on an asking price.
- Failing to recognize different negotiating styles and strategies. Many buyers think that the way to achieve a fair purchase price is by offering low. This strategy may polarize negotiations, lead to seller inflexibility, even a failed negotiation.
- Failing to use a competent home inspection company. Buying a home is a major purchase often made with under half an hour looking at the home. An inspection can save you later surprises that may cost you thousands? Ask your realtor for a recommendation.
- Not knowing your rights and obligations in the Offer To Purchase. It is important to understand completely the terms of the Offer to Purchase. Wrong assumptions, poorly written or missing clauses can impact your purchase with increased costs or a void contract.
- Letting your emotions affect reason. Buying a home is exciting, and often is an emotional decision. A realtor will help to remove the emotion from the negotiating process and provide you with balanced information and facts to help you make the right decisions.