8 Big Time Mistakes
that cost you money when buying a home.

One:
Failing to use the services of an experienced REALTOR®. Many times buyers avoid using the services of a REALTOR® under the mistaken belief that it costs them money – or that they will be able to negotiate a better deal directly with the seller or seller’s agent. This can be an expensive mistake.

Two:
Not knowing who the agent is really working for. It is important for buyers to know and understand for whom the agent helping with the house hunting is actually working. The agent may be working as a sub agent – representing the seller’s best interests during negotiations – or as your agent representing your best interests during negotiations.

Three:
Failing to have a Comparative Market Analysis prepared before offering. Before you make an offer to purchase that special home, you must have a good idea what the market value is to ensure you do not overpay. Your agent can prepare a Comparative Market Analysis showing what similar homes have recently sold for, and the difference between the asking and selling prices.

Four:
Failing to recognize different negotiating styles and strategies. Many buyers think that the way to achieve a fair purchase price is by offering low. This is the strategy of the buyer who is not in possession of all the facts essential to negotiating the best possible deal. Many times that type of strategy will polarize negotiations and lead to inflexibility on part of the seller – or worse yet – failed negotiations!

Five:
Failing to have the home inspected by a competent home inspection company. Buying a home is a major purchase usually made after spending just half an hour looking at the home. Isn’t it worth ensuring you will not be surprised later with deficiencies costing thousands? Your REALTOR® can recommend several reputable companies for you to choose from, and will ensure the appropriate clause is inserted in the offer.

Six:
Not knowing and understanding your rights and obligations set out in the Offer To Purchase. It is important to understand completely the terms of the Offer to Purchase. Wrong assumptions, poorly written or missing clauses, and not understanding how the clauses affect the purchase, can lead to increased costs or a void contract.

Seven:
Letting emotion blind reason. Buying a home is an exciting time and is usually an emotional decision. It is important that those emotions be validated by facts and reason. An experienced agent will help to remove the emotion from the negotiating process and provide you with the information you need to make the right decisions.

Eight:
Failing to take the steps to be financially pre-qualified, and having an interest rate guarantee before looking at homes. Knowing how much you can comfortably afford before looking at real estate for sale will ensure you are looking in the right price range and prevent you from buying a home that will strain you financially and emotionally.

Information provided by Buying a Home.

Visit the Canadian Real Estate Association for additional information on buying.