Things you should know before purchasing your next home.
Think you’re ready to buy a home?
Buying a home is an emotional experience. It is also, however, a business transaction and should always be treated as such. It’s not something Buyers should undertake without first making sure they’re prepared, protected and ready to put their best foot forward right from the start. When Buyers start home shopping without having done their homework, there can be negative consequences. Some Buyers come to realize they’ve paid too much. Some lose out on their dream home as a result of not being ready to act quickly when necessary. Even worse, some commit to buying a home that is not really the right fit. Having a strategy in mind before you start looking at homes can help you avoid costly missteps. Here are some tips that can help Buyers prepare ahead of time to make informed decisions.
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Get Pre-Approved
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It only takes a little time and a bit of organization to get financing pre-approved. Getting the process started BEFORE you find a property ensures you’re aware of any obstacles that could prevent an approval. When you are shopping for a home, pre-approved Buyers are universally preferred by Sellers and their agents. You can still include a financing condition in your offer but if a Seller knows you’ve been pre-approved, they’re more likely to view your offer as a serious one.
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Be Aware of Additional Costs
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Besides the funds needed to actually purchase the home, Buyers should also make sure they have access to additional funds. These funds will be used to pay for things such as the deposit and down payment, legal fees, inspections, appraisals and more. These expenses, know as closing costs, are some of the fees that all Buyers must pay when purchasing a property. Most have to be paid up front and cannot be rolled into the mortgage. Deposits are usually due once Buyer and Seller come to a firm or conditional agreement. And as a rough guide, Buyers should budget for closing costs of 3-4% of the purchase price.
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Find the RIGHT Home
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What features do you want in your next home? What features do you need in order for that home to be a good fit for your family? How much space do you actually need? A house that’s too big and comes with a good amount of maintenance may become daunting or overwhelming. A property that’s too small could lead to regret. It may sound simple, but clearly identifying your needs puts a Buyer in a much better position. Try to get a clear idea of your priorities and work on finding not just a great property, but the RIGHT one.
Think you’re ready to buy a home?
Ask For Guidance
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Is the asking price on your dream home a fair price? Could it be too high? Or is it a screaming deal? Why? How much should you offer? What conditions should you include in your offer to protect your best interests? A Buyer’s own research is important but the assistance of a Realtor® can be indispensable. A professional Realtor® should offer you an unbiased opinion on the value of a home. This means highlighting both the pros and the cons. Realtors® can also help Buyers to gather important property information about neighbourhoods, schools, local market trends that could impact values. Then you’ll also need to consider specific elements of the property such as wells, septic systems or water treatment systems. This knowledge of the local market and the specifics of a property are integral to making an informed decision. It could also mean you miss out on a great opportunity. You’re going to be working with a Realtor® anyway, so be sure to ask questions and ask for guidance.
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Minimize the Unexpected
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During the height of Covid, buyers were facing a stiffly competitive market. This meant that many opted to submit firm offers that did not provide any opportunity to protect their own interests. While our current market is still quite active, most Sellers are once again willing to entertain conditional offers. Buyers should take the opportunity to consider getting a home inspection done before firming up on the purchase. For $300 – $500, a professional home inspector will conduct a thorough inspection of the home. This will outline any deficiencies or areas of concern that Buyers should be aware of before making a decision. The expertise of a reputable home inspector can be priceless. It can mean the difference between uncovering an issue before firming up on a purchase or having to face an expensive repair right off the bat.
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Take a Deep Breath
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Before you sign an offer, it is most important that Buyers make sure they understand it all. Do you understand the documents? Do you understand the conditions? It is your Realtor’s® job to make sure you have a good grasp of ALL of the details. You should be comfortable with everything that has been written down. Your Realtor® should make sure your offer reflects your concerns and protects your interests. Take your time, ask questions and be sure things are just as you want them. Understand that chances are that some details will be changed through negotiations. Just the same, Buyers need to ensure they have taken the time to do things properly from the outset.
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