6 Mistakes Home Buyers Make

Mistake #1. The listing agent is not your friend!

One of the biggest mistakes buyers make - is calling the listing agents in their search. The listing agent's sole interests are to sell the home as quick as possible, for as much money as possible, and for the best terms for their seller. None of that has anything good to say for the buyer, and you would definitely want your own agent to assist with the transaction - and work out fair terms for you. Also - it puts the seller in a bit of an awkward place - knowing their realtor is picking up the phone for both them and the buyer directly. They need to be able to trust their agent is working for them, so it is typically best if there is both a listing agent and buyers agent involved.

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Mistake #2.  Not Getting Pre-Qualified for a Mortgage

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.

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 Real Estate Agent.

Your RE/MAX agent 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.  Shopping before prepared

Make sure you know what you're getting into - what your goals are - and what you want to get out of the purchase. Get pre-approved, so you know exactly how much of a cheque you're able to write, it cuts down on the heartbreak later. Once you know these two things - you're ready to swing and hit!

Mistake #6. Not Knowing The Full Cost Of Home 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.

Alex Devocht
Alex Devocht
1428 W 7th Ave Vancouver BC V6H 1C1