Buying a new home is every person’s dream. This is why most people become overwhelmed with the process and get carried away. What you need to realize is that purchasing a home is the biggest purchase you will ever make in your life, which is why eliminating the hurdles will help you achieve your desired outcome.
Toronto’s hot real estate market is already not very friendly to buyers. A few missteps will mean that your hard-earned savings could go down the drain. That is why it is important for prospective home buyers to avoid making mistakes which could cost them millions of dollars.
In this article, you will learn about seven deadly mistakes potential home buyers should steer clear of.
1. Failure To Distinguish Between Needs and Wants
The first thing you need to do is to identify your needs and then set aside a budget that covers all their basics. Sadly, most home buyers tend to mix their needs with wants. Due to this, they end up buying a bigger home or one with more amenities than they actually need. Soon after buying the home, they realize that the home they bought is much larger and cost them much more than they were willing to spend in the first place. That is why it is imperative to draw a line between your needs and wants so you can easily differentiate between the two.
2. Not Conducting Neighborhood Research
When first time home buyers see a property being sold at a discounted price, they jump on the opportunity, without doing their due diligence. This lack of research comes to haunt them down the road.
Even though they might succeed in scoring an apartment below the market average, it could be in a neighborhood where property prices are declining. Instead of new businesses popping up in the vicinity, you might see businesses moving away from these areas. This is a clear warning sign that the condo you just bought might depreciate more in value.
When prices continue their downward trend, you start regretting your decision of buying a home in Toronto condos without doing research about the neighborhood. Sadly, you cannot do much at that moment instead of selling it at a loss. If you don’t want to get yourself in such a situation, it is highly recommended that you do extensive research about the neighborhood where you are planning to buy a real estate property.
3. Getting Not So Good a Deal
If you are new to real-estate investing, you might be lured into buying a foreclosed property or property on short sale but you need to be aware of the possible consequences of such a move. Don’t be fooled by the below market price tag of a real estate property as it could end up costing you much more money in the long run. If you are getting a crazy deal, it might be too good to be true. Do your research and find why this property is selling below the market price. Secondly, what is the long-term price prediction for this real estate property? This will tell you whether you are actually getting a good deal or not.
4. Neglecting Property Inspection
By far the biggest mistake you could ever make when purchasing a home is avoiding property inspection. The property you are about to purchase might look fine from both the outside and inside but you can never tell what underlying issues it may have. These issues are usually uncovered when you start living in the property. From the leaky roof to plumbing issues, these problems could cost you thousands of dollars
You can save yourself from a lot of hassle and save a ton of money by getting your property inspected by a professional property inspection company. Yes, they might charge you a few hundred bucks but give you peace of mind that you are buying a property that is in best shape and don’t have to repair the property after purchasing it.
5. Not Hiring a Real Estate Professional
After getting your property inspected from an inspection company, the next thing you should do is to hire a real estate agent. Sadly, most businesses don’t do that and end up paying a high price for it. These real estate professionals save you a lot of time, effort and money. It can take care of all the paperwork and technicalities involved in the real estate purchase so you don’t have to get your head around these technical jargons and tedious paperwork.
6. Not Taking Into Account Hidden Fees
You might be wondering why should I get my home inspected by a professional or why should I hire a real estate professional? It is because they are well versed in what they do. They can read between the lines and warn you about hidden fees which you might have ignored. They can tell you how much down payment you will have to make and whether you should get a fixed mortgage for 15 years or 30 years. What are the pros and cons of each? All this can help you avoid hidden fees, save a ton of money and snag a great deal.
7. Renovating and Refinishing Quickly
Last but certainly not the least is to start renovating and refinishing your new property as soon as you move into it. This can increase the cost. Instead, you should wait for a few months and live in the property to identify what problems you need to fix and then renovate your home once you have solved all these issues.
Which is the biggest mistake you have ever made when buying a home? Share it with us in the comments section below.