Summer is here and we are busy with buyers trying to find the perfect Windsor house. For most buyers, they want to be in a home by the end of summer, so they can be settled before school starts and the holidays. For some, because they feel they must find a house this summer, this is where buying mistakes often occur. These mistakes can be costly and cause incredible amounts of stress and sleepless nights. Here are some mistakes that can be easy to make, but that you should avoid.
1. Buying a home you can’t afford:
I have talked about this many times on this site, but this is the time of year where, once again, buyers can get panicky, so they overstretch their budget and make an offer on a home that is way out of their price range. My suggestion to all of my clients: Start looking at homes at the lower end of your price range. If you can’t find anything that satisfies you, then increase your budget by $10,000.
2. Believing that you won’t find any other better homes:
Many buyers shrug their shoulders and give a deep sigh and make an offer on a home they aren’t really in love with, but they figure they better buy something because it’s better than nothing. But believe me, if this isn’t a recipe for buyer’s remorse, then I don’t know what is. Buying a home you don’t really like just because you think you won’t find anything better isn’t realistic. New homes pop up every day on the market. Be patient and as long as you have a real estate agent that is well aware of your needs and working hard for you, you will find the home that is right for you.
3. Overlooking or ignoring major flaws:
Once again, not paying attention to major defects or flaws, floor plan or buying a home “as is” can create all kinds of problems for not only your budget, but your sanity as well. Don’t ignore having a professional home inspection and get estimates on any repairs that may be costly. Don’t think that the roof can last longer if the inspector says a new one is needed immediately.
4. Rushing to make an offer:
Certainly, there are times when you need to make an offer quickly, particularly if the market is red-hot and lots of buyers are looking at a particular home. But, make sure you do your research. If you are unfamiliar with a neighbourhood, school district or anything else about the community or home, then you need to do some investigating before making an offer. I had one client tell me that years before, she was so eager to buy a home that was perfect for her family, that they made an offer without checking on the school district. She and her real estate agent just assumed the schools would be fine. It wasn’t until later that she discovered the elementary school her children would be attending was not the one that was four miles away, but rather ten miles in the opposite direction. If she had done some research, then she said she never would have bought the home. And this is another reminder why it’s always important to hire a neighbourhood specialist for a real estate agent who knows the area inside and out so mistakes like this are unlikely to occur.
5. Offering too much:
Buyers who rush to make an offer and find themselves in a bidding war, often pay too much. This can lead to several problems and why I always encourage my clients to take a deep breath and sleep on it overnight before breaking their bank. First, the house must be appraised for what you are willing to pay for it. Banks will not loan money on a house that is overpriced. You must come up with the difference in cash before the loan can go through. Also, if you need to later sell suddenly, your house has a chance of being upside down, which means you may need to sell it at a loss. Think about it. Is getting into a home worth spending several thousand dollars more than what it is actually appraised for?
These are just five potential problems that can occur when buyers search for homes this summer and feel panicked if they don’t think they will be settled by the end of August. Certainly, there are more costly issues that can happen, but once again, go into your home search clear and focused. And take my word for it, be patient and you will find your next home.