Buying your first home is an exciting time in your life, and it is very easy to get caught up in looking at layouts and finding the right neighbourhood. There are a number of pitfalls waiting for people who have never owned a home before, and you’ll need to slow down and start thinking logically if you want to avoid them.
Mistakes First Time Home Buyers Make
1. They don’t know exactly how much house they can afford.
Many first-time buyers start off preparing a wish list of the types of features they would like to have, such as the size of the lot or the number of bathrooms, without considering their budget. Speaking to a lender and getting pre-approved for a mortgage will stop you from looking at houses outside of the price range you can comfortably afford.
2. Assuming the first offer will be accepted.
When the residential market heats up, there may be more than one buyer interested in a property. It’s possible that you may not end up with the first house you make an offer on. The seller may decide not to accept your offer, even if it is the only one on the table, and you may need to put in offers on more than one property before you end up owning your first home.
3. Deciding to forego the home inspection.
The home inspection is an important part of buying a house. Make the offer contingent on the house passing a home inspection. If the house has any major defects you can pass and if it requires some work that is hidden, you can decide whether to walk, ask the seller to make the repairs, or reduce the amount of the offer to cover the amount you will have to spend.
4. Underestimating the costs of home ownership.
When budgeting for the cost of owning a home, many first-timers don’t consider the entire picture. If you are used to living in a rented space, your landlord is responsible for any repairs to the property if something goes wrong. When you own your own home, you will need to pay for these expenses yourself. Plan to budget for expenses like a lawn mower, snow shovels, gardening tools, and a basic tool kit for when you move in.
First time buyers don’t need to look for their first home alone. Call Daniel and Bonnie Wan today at 905-883-8888 and get the Right Wants working with you.