You may find that Windsor Ontario real estate agents suggesting that you don’t rush to buy is a bit strange. After all, we are in the business to sell homes. What we mean by this is, don’t buy a home just to become a home owner. While home prices are creeping up as are interest rates, some buyers are panicking. Many, but especially first time buyers, need to check their emotions at the door and buy a home that is a good financial fit for them as well as a place they can live in for several years.
Gone are the days where a buyer will say to his real estate agent, “I’m looking to buy a home that I will live in for a year, then I will cash in and move to something bigger.” This mindset is a huge mistake financially as you won’t have recouped your costs nor would you have made much little equity based on today’s real estate market. The goal when buying a home today is that you need to stay in it for at least five years, preferably longer.
Other mistakes buyers make when looking at homes:
1. Looking and falling in love with homes outside their budget:
Buyers who don’t have a clear idea on what their budget is, which means talking to a loan company and getting a pre-approval letter, are often setting themselves up to huge disappointment. There is nothing a real estate agent can do when a loan is declined other than to start showing homes in a more affordable price bracket. So avoid all of this and know exactly what your budget is and not look at anything that is beyond that.
2. Buying a home as is:
Often buyers will get so caught up in a home that they ignore what repairs need to be made and will refuse an inspection. All they know, is that they want this particular home and nothing can talk them out of it. The problem is, buyers are caught up in the euphoria of a home but once reality hits, chances are they will kick themselves when they discover they bought a money pit. Again, buyers must keep their emotions out of buying a home and look at it like a business transaction. Difficult? Yes. Impossible? No. Small repairs are okay, but when a buyer finds out that the home he or she just purchased without an inspection needs a new foundation, or the electrical wiring is a fire hazard, then all of a sudden that home they had to have, is now a nightmare.
3. Rushing an offer:
If at all possible, even in a seller’s market when homes are receiving multiple offers, try to sleep on it before you make an offer. Know the neighbourhood, research the school district and time your commute. Hopefully you will have hired an experienced real estate agent who can give you this information quickly, but thanks to the Internet, much can be acquired quickly. Last thing you want to find out is that the home you just made an offer on is near a proposed prison.
4. Taking your time to make an offer:
But then again, you don’t want to take too much time in a red-hot real estate market. Sometimes you may think you have all of the time in the world, especially if a home has been for sale for many weeks. But if the sellers recently dropped the price, there could be a whole lot of activity. Again, your real estate agent can hopefully let you know if a property is gathering lots of interest or if offers are coming in. But there is nothing your agent can do if you are still gathering financial information or if you won’t return calls.
5. Giving the seller everything he wants:
Sometimes buyers think they must give the sellers everything they are asking for in order to get their offer accepted. But making too many concessions means you have lost all bargaining power. You don’t need to throw in everything including the kitchen sink, like buying a home “as is” or promising to rent the property back if you really wanted to move in immediately.
6. Acting desperate:
Buying a home just to buy a home means you could be setting yourself up for the infamous “Buyer’s Remorse.” If you have been outbid several times, or you decided you hate the place you are currently living in, keep in mind that patience is needed to find a home that you can live in for many years. Throwing caution to the wind and buying a home that you may not particularly like can make your problems a whole lot worse.