10 mistakes buyers make when purchasing a home

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

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.

Tags: , , , , , ,

Strategies for Buying Real Estate in St. John’s

December 29, 2007 · Filed Under First Time Buyers and St. John's Real Estate · Comment 

Learn as much about market values as you can. Compare properties, not only the price but the condition of the property. Visit open houses. Arrange private viewings. Ask your Realtor to prepare a market evaluation of the property (this will tell you recently sold prices and active listing prices of similar properties). Email me and I will send you daily active listings as they are listed on the market.

Most offers are subject to two major conditions. 1) Home Inspection and 2) Financing

The Home Inspection is an option that you, as the buyer, can drop, but for the cost of the inspection versus the cost of the house I would not recommend this. I’ve seen time and time again a Home Inspection saving my clients thousands of dollars in unseen defects.
As for the financing, this option is a must. No financing = no mortgage = no house. Read my post from yesterday Arrange Your Mortgage - Get Pre Approved. The way the Real Estate market in St. John’s, Mount Pearl and surrounding areas are booming now, having your pre-approval in place is key.

Armed with this knowledge you will feel comfortable in writing an offer when the right house appears.

Tags: , , , , , , ,

What is a Home Inspection?

November 26, 2007 · Filed Under Home Inspections · Comment 

A Home Inspection is a visual examination and analysis of the major systems of a property. The systems inspected include the Roofing, Exterior, Structure, Electrical, Heating, Cooling, Insulation, Plumbing, and the Interior.

There are a number of reasons we highly recommend a home inspection:

  • To ensure you are not surprised by major defects
  • So you can be advised about the various elements of the home including - heating and cooling systems, structure, electrical and plumbing
  • To learn about how the mechanical systems work and need to be maintained
  • Most homeowners are not expert in the numerous components of house construction
  • A third party can be objective as there is no emotional attachmentHomestead Inspections

No property is flawless….not even brand new homes. When you find the right house, you need to go one step further and find out what problems exist and what could arise in the future. Buying a house is one of the biggest investments most people will ever make, so it makes good sense to have it checked out by a professional home inspector

Mike Conway (689-6004) with Homestead Inspections has a list of Inspection FAQ’s to help answer some of your questions.

Tags: , , , , ,