Whether you’re buying your first, second, or hundredth home, it never hurts to learn about some of the major mistakes that buyers make when it comes to finding the right place.
Here are 10 of the most common missteps to be aware of and how to correct them so you get the best value and a house you are proud to call home.
1. Rushing the Process
There’s nothing worse than feeling rushed, whether it’s at a restaurant or an appointment. However, buying a home is a significant investment into your future, which makes taking the time to get it right more important than ever. So, why do so many prospective home buyers rush the process?
It could be the excitement over the idea of owning your home or the fear of missing out to a competing buyer. Whatever the reason, making a snap decision is one of the biggest mistakes you can make.
Take a breath and slow down. Before you begin your search, it pays to have a clear list of what you want and what to avoid. Your sanity and your pocketbook will thank you once you’ve settled into your ideal home.
Understanding the Toronto real estate market of today will help you make the right decision at the right time. Learn more in the posts below:
- Five Real Estate Myths: Busted!
- Will Bidding Wars Return to Toronto?
- Why Now Is the Time for Toronto Buyers
2. Waiting too Long
On the flip side of the coin, some buyers take way too long to make a decision. By the time they’ve visited their twentieth option, overwhelm and paralysis by analysis have firmly set in. It’s critical to take the time to get it right, but there’s a fine line between being careful and procrastinating endlessly.
If you’ve been hesitating to place an offer on a home you love, ask yourself why. Buying Toronto real estate can be intimidating, but it is also an exciting start to a new life. A local real estate agent can help you get past your fears and uncertainty and have you turning the keys to your new home when the time is right for you.
3. Ignoring the Market
Do you know if we’re currently in a buyer’s or a seller’s market? If you don’t know, you are already hurting your chances of a positive buying experience. The purchase of a home is not something that happens independent of other factors – it’s influenced almost entirely by the market.
Not only that, but there could be hidden opportunities in up-and-coming neighbourhoods you haven’t yet considered. Buyers who don’t know the market, and don’t know what they are potentially getting into, are setting themselves up for failure before they even begin. Working with a full-time real estate agent who understands these dynamics is the best way to correct this mistake.
4. Neighbourhood Research
One of the most important parts of the home-buying process is knowing where you want to buy, what you can buy, and, ultimately, how the two relate. You need to know the area and the available homes, and you need to have a thorough understanding of your budget.
Did you know that if you move a block east, you could get more home for less money? Expand the borders of your search and really get to know your options. Focusing too intensely on one street, one neighbourhood, or even one specific area can limit your ability to find the perfect home for you.
5. Skipping the Home Inspection
If you’ve gotten this far and found a home you love, you need to make sure that you’re doing everything right when it comes to taking ownership. Skipping or not properly understanding the process of a home inspection can be a big mistake. This is especially common when the market heats up and buyers face competition for fewer listings.
Nevertheless, you need to have a solid inspector, one who will be honest with you and can point out problems long before they happen. Skipping this step could end up costing thousands down the line.
If the home inspection does turn up an issue, you might still decide to move forward with the purchase. However, being armed with that knowledge empowers you to factor these expenses into your final purchase price.
6. Working With the Wrong Agent
Having a real estate license does not necessarily make someone an expert. Nor does it mean they have the knowledge or skill to help you acquire the right house at the best price. Some agents have been out of the market for some time. Others work only part-time in the industry, and cannot do everything it takes to get you the best results.
When you’re looking to buy, you need to work with an agent who understands the current market, knows the area, and works with the right people who can help you get the best deal. When you work with the right agent, you can forget the stress and the hassle of feeling like you’re on your own – because they’re right there with you.
Buyers who make the wrong choice of working with an agent who is not the right fit may feel abandoned during the process. Even worse, they often end up paying too much for their home.
7. Not Understanding Family Dynamics
Your family members care about you and will understandably want to weigh in on your decision of what house to buy. Their support is invaluable, but their advice is not always accurate or up-to-date.
Your well-meaning relative may have bought a house years ago. However, the market has likely changed since then. Automatically assuming they have the expertise to help you evaluate listings or negotiate with sellers could end up costing more to land the home of your dreams.
You will have to learn how to discern good advice from the bad while showing your relatives that you appreciate their feedback. You can review recent market trends and statistics by visiting the websites of local real estate boards. In addition, a current real estate professional can explain what those facts and figures mean and how they affect your purchase.
8. Being Underprepared
Today’s fast-moving market means you’ll want to be empowered to act when you find the right house. Do you have a crystal clear budget range in mind, and are you certain that you will get approved for enough funds with your mortgage to make your purchase?
Before looking at houses, it’s a good idea to take the time to review your finances and your goals. Consulting with a local real estate agent will give you a good idea of what type of homes are available in your choice neighbourhoods. In addition, getting a mortgage pre-approval in advance will allow you to place offers with confidence.
9. Buying for the Short Term
When the competition heats up, it can be tempting to buy any house just to get your foot in the door. While getting into the market sooner rather than later is beneficial, you still want to make the right choice where you will be happy for the next few years.
Think of buying a house as a long-term investment. Buying now only to sell shortly after isn’t just a hassle; it can hurt your chances of maximizing your equity growth.
Why consider Toronto for your next home? The related posts below will give you plenty of reasons to want to put down roots:
- Cycling in the Summer: Toronto’s Hottest Bike Trails
- Let the Music Play: A Guide to Toronto’s Incredible Venues
- Hot Places To Cool Down In Toronto This Summer
10. Underestimating the Costs of Buying
Most people are aware that there are costs associated with buying a house beyond the selling price. However, it’s not uncommon to underestimate just how much you will need to finalize your transaction. You’ll want to factor in enough to cover legal fees, title insurance, land transfer taxes, moving expenses, utility hookups, and other closing costs. Plus, it will help to set aside an emergency fund to cover any repairs, maintenance, or other unexpected expenses that often arise.
Buying a house in Toronto requires careful planning, budgeting, as well as extensive guidance from a real estate expert who is in the know. When you know what to do and what to avoid, you can look forward to a seamless transition into a home you will love for many years to come!
Are you ready to start the search for your home in Toronto? Our experienced team is here for you every step of the way. Reach out to Erica@EricaReddy.com or call 416.443.0300 to start a conversation today.
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