5 Costly Mistakes Home Buyers Make When Shopping for a home...
Not choosing a real estate agent who is committed to forming a strong business relationship with you.
Making a connection with the right real estate agent is crucial. Choose a professional who is dedicated to meeting your specific needs, before, during and after the transaction. Choose and agent who will stick by your side even long after the sale has completed.
Not knowing what they can afford before making an offer.
The best way to avoid this is to get pre-approved for a mortgage so you know exactly how much you can afford. Usually pre-approvals are free, and they make your life easier. Take the time to speak with a mortgage broker (not at your local bank/credit union). Their evaluation of your income, financial obligations, and other factors will help determine a price range that will fit your budget. This is one of the most important steps towards home ownership.
Not knowing who the agent represents.
In 2016, the BC government made a rule change that causes us as real estate agents to no longer represent both sides of a real estate transaction. If you are the client of a real estate professional, they work on your behalf. The real estate professional representing you has special legal duties to you, including:
-Loyalty: They will act only in your best interest.
-Full Disclosure: They must tell you everything they know that might influence your decision in a transaction
-Avoid Conflicts of Interest: They must avoid any situation that would affect their duty to act in your best interest.
-Confidentiality: They must not reveal your private information without your permission, even after the transaction ends. That includes: Your reason for buying, selling or leasing; your minimum/maximum price; any preferred terms and conditions you may want to include in a contract.
Unless an agent is working as your buyer representative, they represent the seller, and NONE of the above duties are owed to you by law.
Not knowing the total costs involved.
A bad mortgage can cost you thousands in taxes and interest. Consult an accountant before you choose your mortgage.Mistake #4
Not finding problems with the home before buying it.
A great real estate agent should have some general knowledge of construction and what are some common issues to look out with homes in the area. Ask your realtor if they are able to tell you things to watch out for when you are viewing homes. Once you have an accepted offer by the seller, you should always hire a professional home inspector look at the home before buying it, otherwise you could be looking at huge repair costs later on. Read this guide to avoiding a money pit.Mistake #5
Not considering alternatives for what you think is the perfect home.
Unless you are building a new home, buying a home is a process of elimination, not selection. New properties arrive on the market daily, so be open to all possibilities. Ask your real estate agent to provide a comparative market analysis for information about other available homes.