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Common mistakes made by many first-time home buyers

July 9, 2017

We have all screwed up sometime in our life. Buying things that were never needed – things like a pair of jeans just because someone looked nice in it. Or even a nice car but ended up realizing that it was burning too much gas or the payments were too expensive.

We all have stories to tell. It’s part of growing up.

Buying a car or a pair of jeans were draining your money. But now you think of buying your first home. Not only its complicated but it can quickly turn into a regret that you cannot afford to get out off – at least not so easily. This is a big financial decision and unless you are prepared it can ruin you big time.

Let’s look at some of these mistakes:

1. Emotional buying

For a lot of people, this is probably the the single most expensive thing you will ever buy.

You see the first house and you want it so badly. Relax – keep looking for several homes and don’t get emotionally attached. You might like the second one better – or maybe the 10th.

2. By passing a real estate agent

Real Estate agents are trained and can advise you on your options. They are professionals so let them work with you till you find a home you like.

3. Going directly to the listing agent

Sometimes you decide to work with the listing agent – based on properties you source online.

Unless you have worked with this agent before or know him/her personally, it’s certainly never a good idea.

4. Saved enough money for the down payment?

You just passed one hurdle. Do have enough for other costs? This can add up quite a bit like closing costs (2-5% of the home’s price), buying new stuff like furniture, appliances, moving costs or money needed for upgrades. And some extra reserves for unexpected costs.

5. Pre – Approved for your Mortgage?

You been pre-approved but now the bank appraiser has assessed the home value lower than the asking price. Are you prepared?

6. Not getting a home inspection

A lot of people in Vancouver and the Lower Mainland are bidding on homes with multiple offers. Panic sets in.

You wanted this house no matter what. And you by pass the home inspection so your subject free offer is accepted.

You take possession and now realize a lot of things are wrong and you are not prepared to deal with this. And you overbid just to win this dream home. You didn’t budget for this !!

All homes need to be inspected by an accredited home inspector. This includes all homes – even newly built.

An experienced home inspector will be able to find issues with a home. This may include leaky faucets or moisture issues that may be breeding grounds for MOLD. Or even damaged doors, electrical issues, a roof which may be prone to leaking or an older water tank that needs to be replaced.

Defects found during a home inspection may be used to negotiate the asking price or getting the seller to fix some of the bigger ticket items. Some buyers simply choose to walk away.

7. Do your Research

Realtors are known to recommend inspectors they are familiar with. Do you own research when choosing a home inspector.

You are investing a lot of money in your home, so don’t end up bargain shopping for a home inspector either.

Ask plenty of questions when hiring a home inspector. This may include information sourced from their website, client reviews, number of inspections completed and the type of report given.

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