1. Looking for a house without
getting pre-approved by a lender:
When you are
pre-approved, you are effectively a cash buyer. This
makes it much easier to negotiate with the seller. Do
not mistake pre-approval with pre-qualification;
pre-qualification is only the first step in gaining
pre-approval. Ask your Banker or REALTOR® for details.
2. Failing to check out the
neighborhood thoroughly before buying:
How do
traffic patterns change depending on the day, or even
the time of day? Are there any future developments in
the works? Is that nice green space down the road
actually zoned for high-rise development? Ask around -
check it out first.
3. Making an offer based upon the
asking price, not the actual market value:
Do
your homework. What have similar properties sold for in
the immediate area? How long were they on the market?
How does this one compare? Is it over-priced,
under-priced, or fair value? Ask your REALTOR® for an
up-to-date market summary.
4. Letting "first impressions" affect
your decision too much:
There are entire books
written on how the first impression of a home is the
single most decisive factor affecting many purchasers'
decision to buy. Don't let bad décor or messy
housekeeping scare you away from a structurally solid
home that meets all your needs. Remember, you are buying
the house, not the furnishings.
5. Buying a home without a
professional house inspection:
When buying a
house, consider getting a professional property
inspection. Not only will you know what you are buying,
but these reports will protect you from unforeseen nasty
surprises in both the short and long run.
6. Assuming that the Bank's quoted
mortgage rates are written in stone:
Like many
industries, banks are experiencing increased competition
and are often willing to negotiate mortgage rates.
Depending upon the market and profit spreads, it is
sometimes possible to negotiate substantial savings. Ask
your Banker or REALTOR® for details.
7. Not shopping for home insurance
until you are ready to move:
If you wait until
the last minute, you will be rushed in finding
insurance. Allow time to shop around and get the best
deal.
8. Signing documents without reading
them:
Do not wait until the last minute before
reading the documents; there probably will not be time.
Try to get copies of all documents early on in your home
search so that you can peruse them at your leisure.
9. Making verbal agreements:
Not only are they harder to enforce, but any written
contract you sign will override a verbal agreement.
Contract law says that verbal agreements are not
enforceable when they deal with Real Property. Always
get it in writing!
10. Not knowing your rights &
obligations:
If you do not know your rights, then
you can be taken advantage of. If you do not know your
obligations, you may inadvertently cause friction
between yourself and those with whom you are about to
enter a contract. Both your REALTOR® and Lawyer are great
sources of information concerning this - make use of
their expertise and resources.
