Even experienced homebuyers can make mistakes when purchasing a new home because the process can sometimes be stressful and emotional. Make sure you avoid these three major pitfalls when buying a home; learn how to ensure a hassle-free negotiation. As an experienced Mississauga real estate agent, I know how to ensure the process is smooth.
Mistake Number One: Not doing a credit check and getting prequalified
You may have worked out a budget and you may have an idea of what you can afford, but do you know how much a bank is going to be willing to lend you to purchase your dream home? Getting your financial house in order with a credit check and lender or broker prequalification will help you avoid disappointment and wasting time, if you end up qualifying for less than the price of your dream home. Get prequalified for a loan and only look inside your price range so that your expectations are reasonable and you don’t end up dreaming about a home that you just can’t have.
Mistake Number Two: Buying the wrong house
A prioritized list of needs versus wants should be made before you start looking at houses. This will help avoid looking at homes that look good on the surface but are inappropriate for your needs. During the process of finding a home, make sure you’re focused on the features of a home that can’t be changed easily–or changed at all–such as the number of bedrooms and bathrooms, a view, proximity to work, or location in a certain neighborhood, instead of items that can be upgraded later in any home, such as appliances, fixtures, and finishes.
Mistake Number Three: Botching the offer
There are many ways the financial aspect of a real estate transaction can be thrown into disarray. The biggest is making an unreasonable offer and asking too many demands of the seller. If you really want the house, make an offer closely based on recently closed comparables in the same neighborhood. Go too low, and you risk losing out to another offer or insulting the seller, after which they may not bother making a counteroffer or may even refuse to work with you. Go too high, and you risk losing money. If you find yourself wanting to make a lowball offer, that may be a sign that you should keep looking for a home that you really want and for which you are willing to pay market value.
Remember that you absolutely need to get your finances in order before looking. While no house is perfect, if you forego something you really need in favor of something you really want, you may be sorry long term. Finally, make sure that once you find a home that fits your needs, you give yourself a reasonable chance to get that home so you don’t have any regrets about missing out and having to settle for something else. You should know that you can rely on me, a Mississauga Real Estate Agent with more than 25 years of experience, to help you avoid these mistakes when purchasing your next home. Contact me at 905-502-1500 or www.mcdadi.com for more information.