Six Mistakes Buyers Make.
Mistake #1. Not Getting Pre-Qualified
Before looking for your next home take the time to get pre-qualified by the
bank or mortgage broker you choose. This can save you hours of searching
for homes in the wrong price range or worse, purchasing a home and then finding
out you don’t qualify for financing. Pre-qualifying gives you peace of
mind, helps narrow your search criteria and most importantly, gives your RE/MAX
agent a negotiating edge by being able to alleviate the sellers concern over
financing. The latter is especially important should a competing offer surface.
Mistake #2. Not Shopping For Mortgage Terms
Rates are negotiable! Banks will sharpen their pencils to get your business
especially if you have a good credit rating and bring other business to them
e.g. RRSP’s, general account, savings etc. Posted rates should viewed as a
starting point. You need to know what the best rate is and this is usually done
by get competitive quotes. Also, ask whether the bank will cover appraisal fees,
and about buy-out fees, penalties, payment options, portability etc. The
time spent can save you thousands of dollars over the life of the mortgage.
Mistake #3. Not Getting Professional Inspections
Nobody wants to purchase a home only to find out later there are defects,
latent or otherwise. Ensure you obtain inspections where needed e.g. home
inspection, structural engineer, insect, radon etc. If the inspection
identifies deficiencies you may be able to negotiate the purchase price to cover
required repairs or make your satisfaction of the inspection subject to the
homeowner remedying the problem. Your RE/MAX agent can advise you on inspections
you should consider.
Mistake #4. Not Using A Professional Agent.
We can help you make a purchase with the least amount of problems. He
or she can ensure the price you pay is market value. They can offer expert
advice on what to look for, conditions to include, negotiation strategy etc.
After all, they work for you.
Mistake #5. Buying First Before Selling
If price is important you should always sell your present home before buying
another. It has the advantage in letting you know exactly how much money
you will have available for your next purchase. Selling your home first
allows you to place fewer conditions on your purchase which makes your offer
more attractive to a seller. They often will demand more money to take a
“subject to” offer which takes their home off the market. The other
advantage is if you find a terrific house, chances are others will also find it
attractive and you stand to lose it if you can’t make an unconditional offer.
Mistake #6. Not Knowing The Full Cost Of Buying
Know all the costs associated with your purchase. Consider the
following costs: legal fees, transfer tax, property taxes, new home
landscaping, fencing, appliances, window coverings.
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