6 Mistakes to Avoid When Buying Your Next Home | Edmonton Realtor Blog | Dwight Streu

Dwight Streu
Thursday, August 13, 2020
6 Mistakes to Avoid When Buying Your Next Home | Edmonton Realtor Blog | Dwight Streu

Do you want to buy a home for the best price possible and avoid costly errors? Here are 6 mistakes to avoid when buying your next home.

Mistake Number 1: Not getting pre-approved for a mortgage. Getting pre-approved is beneficial in several ways. Firstly, you will find out exactly how much you can afford to qualify for and exactly what your monthly payments will be. There’s no point looking at homes and falling in love with them only to find out after you can’t afford to buy them or they’re more than you budgeted for. When you get preapproved your lender will also hold the current interest rate for you - usually for 60-90 days so if rates were to go up you will get the lower rate that they held for you however if rates go down in the meantime they will give you the benefit of the new lower rate. It's a win-win for you and there’s no cost or obligation to do this. Thirdly when you are pre-approved and can show that in writing to a seller it will help you negotiate a better price and in the case where you are competing with another buyer for a property it could make the difference between you getting the property ahead of the other buyer if they have not been pre-approved. The last thing a seller wants is to accept an offer and find out 2 weeks later the buyer could not get their financing so If you can demonstrate that your financing is secure there is less risk for the seller and that's worth something. 

Mistake Number 2: Not being absolutely crystal clear on your priorities and goals for the property you want. Make a list of those things that are negotiable and those that are not. Non-negotiable may include things like the price, the location number of bedrooms and bathrooms and so on. Non-negotiable maybe things like does it have a fireplace or a garage or a walk-in closet. Once you’ve made your list make sure you stick to the non-negotiables. It's best to not even look at properties that don't meet these criteria. It’s easy when your excited about buying a home to get sidetracked and buy a home that caught your eye or has lots of bells and whistles only to find out later that it doesn’t work for you. Try to take the emotion out of buying and refer to your list when looking at homes. 

Mistake Number 3: Not having an inspection done. A home is one of the largest investments most people make so it makes sense to know what you are getting. Most often there won’t be any major problems but you never know and sometimes there's a lot of minor repairs that can add up. 

Mistake Number 4: Not budgeting for extra costs. You will need a downpayment but there are other costs associated with buying a home as well. Those could include appraisals, property taxes, the inspection, legal fees, moving expenses and so on. So be sure to investigate what other expenses might apply to your purchase. 

Mistake Number 5: Not having an Edmonton agent working exclusively in your best interests. When you hire a REALTOR® to act as your agent they owe you certain legal obligations including undivided loyalty, confidentiality, and full disclosure to name just a few. Agents who have not entered into an Agency Relationship with you do not have the fiduciary responsibilities as those who do. You are a customer, not a client and there are big differences in what they can and cannot do for. 

Mistake Number 6: Hiring the wrong REALTOR® with no way out. You need to find an agent you are comfortable working with. You’ll be working closely with your agent so you’ll want to have confidence in their ability and that they are working in your best interest so don’t be afraid to ask some tough questions, ask for references and check out the agent's online reviews. Don’t assume that just because an agent has a license that they are qualified to do the job you want them to. Having a real estate license doesn’t make you a good realtor anymore than having a driver's license makes you a good driver. Regardless of who you choose you should make certain you can get out of your contract if your agent is not living up their promises. This type of escape clause or satisfaction guarantee as we call will keep your agent accountable to you every day.

Avoid these 6 common pitfalls and you’ll be well on your way to buying your next home for the best price possible and without any costly surprises or hassles. 

If you have any questions please give me a call at 780-462-5002 or email dwight@dwightstreu.com

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