10 mistakes buyers make when purchasing a home

January 2, 2008 · Filed Under First Time Buyers and St. John's Real Estate 

1) Making an offer on a home without being pre-approved.

Being pre-approved will make your life easier so take the time to speak with a Mortgage Specialist. They will help you determine a price range you can afford and lock in a mortgage rate for a set period of time.

2) Not having a Home Inspection.

Trying to save money today can end up costing you tomorrow. A qualified home inspector will detect issues that buyers can overlook.

3) Limiting your search to open houses, ads or the internet.

Many homes listed on the website have already been sold. Your best course of action is to contact a Realtor. Call or Email Fraser & Stephen Winters. We have up-to-date information that is unavailable to the general public. The best resource to help you find the home you want.

4) Choosing a Real Estate Agent who is not committed to forming a strong business relationship with you.

Making a connection with the right Realtor is crucial. Choose a professional who is dedicated to serving your needs – before, during and after the sale.

5) Thinking there is only one perfect house out there.

Buying a home is a process of elimination, not selection. New properties arrive on the market daily, so be open to all possibilities. Ask your Realtor for a comparative market analysis. This compares similar homes that have recently sold, or are still for sale.

6) Not considering long-term needs.

It is important to think ahead. Will the home suit your needs 3-5 years from now?

7) Not examining insurance issues.

Purchase adequate insurance. Advice from an insurance agent can provide you with answers to any concerns you may have.

8] Not buying Title Insurance.
Title insurance is unlike any other kind of insurance. It is not house insurance which only protects the contents of your home or its structure and for which you have to pay a monthly or annual premium. Unlike house insurance, you only pay a one-time premium with no deductible.
Title insurance is distinctive in that it protects your ownership or title against losses incurred as a result of undetected or unknown title defects, for as long as you own your home. Even if you are the rightful owner of your home, there are instances such as real estate title fraud, when your title can come into question.

9) Not knowing total costs involved.

Early in the buying process, ask your Realtor or lender for an estimate of closing costs. Survey costs, home inspection costs, possible title insurance, possible CMHC fees and attorney fees should be considered. Remember to examine your settlement statement prior to closing.

10) Not following through on due diligence.

Buyers should make a list of any concerns they have relating to issues such as: crime rates, schools, power lines, neighbors, environmental conditions, etc. Ask the important questions before you make an offer on a home. Be diligent so that you can have confidence in your purchase.

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