Consulting experts on real estate and mortgages before you start hunting will help you avoid costly mistakes or losing out on your dream home.
|Are you in the middle of a bidding war with buyers, can be stressful and costly. That’s why it’s helpful to have a sales rep to help you every step of the way.|
Interesting article on thestar.com By Joseph Richer
Real estate bidding wars move really fast and can be an emotional roller coaster. How can one avoid making a decision that you’ll regret?
This question is asked a lot. In a hot market, buyers often feel like they don’t have the time to consider every step of the process and the same probably goes for sellers.
A couple of months ago, another first-time home buyer got overwhelmed during the process and hit a major snag that cost him his deposit — and his dream home.
Unfortunately, this person didn’t understand what they could afford and there wasn’t enough communication between them and their sales rep about what they were looking for in a home. Ultimately, this buyer could not get financing and the deal fell through.
Key tips about protecting yourself during the buying process.Hire a real-estate professional who is right for you:
According to the Real Estate Council of Ontario (RECO), one of the things emphasized to consumers is the importance of getting expert help. Shopping around for the right salesperson is a lot like holding job interviews.
Sit down with at least three different sales agents, ask them questions, find out about the services they offer, and double-check their references.
That will put you in a better position to pick the person who best understands your needs, and whose approach aligns with your preferences.
Also, document in writing the services that will be included.
Being in the middle of a bidding war with one or more buyers is stressful and can be costly. That’s why it’s helpful to have a sales rep to help you every step of the way.
Know what you can affordThis buyer who had made a firm offer on a home, on the advice of his sales rep, and waived the financing and home inspection conditions — even though he only had 5 per cent for a down payment.
When the buyer tried to secure financing, the mortgage lender required a 15-per-cent down payment.
Very important for the buyer to seek expert advice. In this case, speaking to a mortgage professional and getting mortgage pre-approval and a firm number would have made it clear what was affordable during the house hunt.
In addition, if you are thinking of raising your offer price, the first thing you should consider is whether you have enough money in your budget to do so.
Keep in mind that the financial institution might be prepared to lend you what you want, based on your financial situation, but they will also want to ensure the home you are buying is worth enough to cover the mortgage.
Understand all costs with home ownershipFirst, there are the costs that come as part of the transaction:
- mortgage insurance
- land transfer tax
- home inspection
- appraisal and legal costs.
There are also the costs to make the home your own, including moving costs and home decor.
And there are recurring costs like:
- home insurance
- rental fees for hot water tanks
- furnaces and air conditioning
- as well as home repairs and ongoing maintenance
See original article on thestar.com By Joseph Richer