There are few things in life as exciting as buying your first home. If you’re well prepared, the transition from renter to homeowner will likely be a smooth one. To help ensure a successful purchase, avoid these common first-time buyer mistakes…
Not having a budget
One of the biggest mistakes you can make is beginning your search without a well-thought-out budget. It can be tempting to jump into the process with nothing but a general price range in mind. But if you haven’t factored in all relevant expenses, you run the risk of seriously considering homes you can’t afford.
Even if you’ve gone through the mortgage pre-approval process, it’s important to do the math yourself. Lenders only look at your income and debts to determine how much you should be approved for—not regular costs such as groceries, transportation, and childcare.
Forgetting to include new expenses
If you’ve always been a renter, you might underestimate the new expenses you’ll be dealing with as a homeowner. Property taxes, larger utility bills, and ongoing repairs are a some of the most commonly overlooked costs.
To budget smarter, you need to carefully consider all new expenses. The city provides an online property tax calendar, which you can use to see how much you’ll pay on homes at various price points. A bit of online research will turn up potential utility costs for houses and condos of various sizes. And while repairs are hard to predict, setting aside 1 to 3 per cent of your household income to take care of them is usually a safe bet.
Falling in love with home decor
Sellers put a lot of thought into getting their homes show-ready. Their efforts often include buying or renting new furniture and home decor. As a buyer, be careful not to let these items sway your decision.
While you can sometimes negotiate to have pieces of furniture included in your purchase, these items will usually leave with the seller (or go back to the rental company). That’s why it’s so important to figure out how much of a home’s appeal has to do with how it’s decorated.
When you view a property, try imagining your own belongings inside. And if you’re planning to buy new furnishings, you can always use the previous owner’s setup as inspiration.
Failing to see potential
Just as it’s easy to fall in love with a perfectly-decorated space, it’s tempting to dismiss a home that’s been poorly staged—or hasn’t been staged at all. The truth is, most people can’t imagine themselves living in a house or condo if they don’t feel welcome when they walk inside. But letting a great home slip through your fingers because of an owner’s bad decorating decisions is a mistake.
During showings, try to look beyond mismatched furniture and clashing colour schemes. Instead, pay attention to the features that would impact your day-to-day life as a homeowner. Does the space have high ceilings, an open-concept kitchen, and lots of natural light? These are the qualities that will matter in the long run.
Searching without a real estate agent
You might think it’s a good idea to start looking for your first home on your own. But without expert guidance, you’re far more likely to make a mistake that will negatively impact your purchase.
The right real estate agent will advise you at every stage of the buying process. They’ll find properties that match your budget and preferences, tell you what to look out for during the search, and (most importantly) help you get the best possible deal on the home of your dreams. If you’re ready to buy a home, take the first step by contacting an agent with local market expertise and a track record of success.
Ready to buy your first house or condo? We’ve helped many first-timers navigate the buying process to find their dream homes. Get in touch today, and we’ll discuss your needs.
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