Because buying a house is such an investment, a mistake can end up costing you quite a bit in the long run. A lot of people fail to realize that buying a home is not the same as any other purchase they are likely to make, and many end up making the same mistakes, whether they're looking at Mississauga homes for sale or Lake Scugog cottages. Here are a few of the most common; hopefully you can avoid them.
Failing to consider a future sale. Most of the time, the first home you buy will not be the same one you are in five years down the road. In fact, statistics say that on average, buyers only stay in their first homes for four years. Unfortunately, many forget to take the sale of the house after that time period into account before they buy. Make sure to check out all the factors before making the transaction, including the chances that the market in the area will go up or down. If you're looking at places like homes for sale in Oshawa the resale value might not be as good as with power of sale properties in Brampton. You don't want to be stuck with a house that you can't sell in a couple of years.
Failure to explore financing options. Most first time home buyers simply follow the same road map as everyone else when they get their financing. They go to a broker recommended by the agent, who then shows them how a bank will finance their deals. Most people don't have to time or will to go on an executive search in Toronto to find the ideal financer. To be fair, most of the time buyers are practically asleep by the time they get to the options, but it pays to understand the implications of payment terms. And we mean, it REALLY pays; getting a lower interest rate can mean paying thousands of dollars less in the long run.
Failure to present an attractive offer. Sellers won't just look at the price you are offering, they will also look at the likelihood that you will actually pay it. A lot of sellers want to sell as quickly as possible, and many have been burned when deals fell through in the past due to financing factors. Having the money to back up your offer on hand often tips the scales in your favour. You'd hate to put in an offer on that perfect Yonge Eglinton condo and then not have the offer accepted because they think you won't pay!
In some cases, these errors simply mean that you miss out on the home you thought would be perfect. In others, bad decisions can really cost you in the future. It's best to avoid all of these common errors, and forewarned is forearmed.
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