Looking for a house without getting pre-approved
by a lender - When you are pre-approved, you are effectively a cash buyer. This
makes it much easier to negotiate with the seller. Do not mistake pre-approval
with pre-qualification; pre-qualification is only the first step in gaining pre-approval.
Ask your banker or Annette for details.
Failing to check out the neighbourhood thoroughly before
buying - How do traffic patterns change depending on the day, or even the time
of day? Are there any future developments in the works? Is that nice greenspace
down the road actually zoned for high-rise development? Ask around - check it
out first.
Making an offer based upon the asking price,
not the actual market value - Do your homework. What have similar properties sold
for in the immediate area? How long were they on the market? How does this one
compare? Is it over-priced, under-priced, or fair value? Ask Annette for an up-to-date
market summary.
Letting "first impressions" affect your decision
too much - There are entire books written on how the first impression of a home
is the single most decisive factor affecting many purchasers' decision to buy.
Don't let poor decor or messy housekeeping scare you away from a structurally
solid home that meets all your needs. Remember that you are buying the house,
not the furnishings.
Buying a house without a professional home inspection
- When buying a house, consider getting a professional property inspection. Not
only will you know what you are buying, but these reports will protect you from
unforeseen nasty suprises in both the short and long run. In fact, consider having
a home inspection completed prior to submitting your offer.
Assuming that the Bank's quoted mortgage rates are
written in stone - Like many industries, banks are experiencing increased competition
and are often willing to negotiate mortgage rates. Depending upon the market and
profit spreads, it is sometimes possible to negotiate substantial savings. Ask
your banker or realtor for details.
Not shopping for home insurance until you are ready
to move - If you wait until the last minute, you will be rushed in finding insurance.
Allow time to shop around and get the best deal.
Signing documents without reading them - Do not wait
until the last minute before reading the documents; there probably will not be
time. Try to get copies of all documents early on in your home search so that
you can peruse them at your leisure.
Making verbal agreements - Not only are they harder
to enforce, but any written contract you sign will override a verbal agreement.
Contract law says that verbal agreements are not enforceable when they deal with
Real Property. Always get it in writing!
Not knowing your rights and obligations - If you do
not know your rights, then you can be taken advantage of. If you do not know your
obligations, you may inadvertently cause friction between yourself and those with
whom you are about to enter a contract. Both your realtor and lawyer are great
sources of information concerning this - make use of their expertise and resources.
