Buying a house or condo is an exciting experience, especially when it’s your first time. From perusing online listings to viewing gorgeous living spaces to making an offer on your dream home, there are enjoyable aspects at every step.
Of course, the process can also be confusing—and making a wrong move could wind up costing you time and money. While a great real estate agent can help guide you through your purchase, there are also a few things you can do to protect yourself from making a major home-buying blunder.
If you’re preparing to jump into the market, here are five common home-buying missteps you should avoid…
1) Searching for a Home Without a Pre-approval
One of the most important steps to buying your first home is something that many would-be buyers skip. However, you can set yourself up for a successful purchase by getting pre-approved for a mortgage before even looking at listings.
During the pre-approval process, a lender will look closely at your financial situation and determine how much you’ll likely receive in financing. Typically, you will fill out a mortgage application and they will run a credit check.
In the end, you get a certificate of pre-approval which will help you create a realistic budget for your home. Now that you know that you qualify for a mortgage, you may even feel comfortable dropping the condition of financing from your offers, which makes them even more compelling to sellers! This one step can be the key to competing against multiple buyers in a busy market.
Once you’re pre-approved, we recommend that you don’t make any unnecessary large purchases or career changes until you’re in your new home. This will ensure your loan goes through without a hitch, and you can show sellers that you’re a serious buyer—one who has the funds to make it to the finish line.
Why consider buying a home in Toronto’s West End? Here are a few reasons you might want to put down roots here:
- Explore the Best of Toronto’s West End This Spring and Summer
- Top Hiking Trails In The West End
- Discover the Wonderland of Family-Friendly Parks in Toronto’s West End
2) Not Creating a Thorough Budget
Setting a price range before you start your search is critical, but don’t forget about the additional costs you’ll likely take on when you make a purchase. Property taxes, homeowner’s insurance, utilities; these expenses can add up.
Forgetting to factor all of them into your home-buying budget is a major mistake—one that many first-timers make. The result can be wasted time (since you might wind up looking at living spaces you can’t afford) or unexpected debt (if you do end up with more home than you can comfortably pay for).
A great way to prepare for the unexpected is to create a budget range, with a low, medium, and high end. If you can, staying from the medium to the low range will help you afford any repairs or expenses that come up. If you have funds left over, then you might decide to treat yourself to some beautiful new home decor items to make the space your own!
3) Snapping up a Home Too Quickly
Sometimes, you just get a feeling about a home. The moment you step inside, you can imagine dinner parties at the dining table, BBQs in the backyard, and playtime with the kids in the living room. While exploring these feelings is an important step towards finding your dream home, it can sometimes lead buyers astray.
The first property you see could be just right. Still, it’s always a good idea to dig deep before making a commitment. Taking time to think about what you really need, now and in the future, will help to ensure you end up with a home you can be happy with for the long term.
Be sure to ask sellers the right questions—your real estate agent can help you determine what those are.
4) Being Too Selective
On the other end of the spectrum, some buyers hesitate when they should jump in. They pass on homes that are absolutely perfect for them, apart from one or two small details. Unfortunately, this type of attitude can prolong the process—and lead first-timers to pass on fantastic properties that could meet your needs.
A house may have outdated kitchen cabinets or unattractive bathroom flooring, but all of these are fixable in time. Rather than worry about cosmetic issues, focus on the structure and location. Always remember that you can renovate away outdated or unappealing home decor, especially for a place located right in your ideal neighbourhood.
Now that you know what NOT to do, you can find more tips about finding and buying your next home in the posts below:
- A Guide To Buying Your First Home In Toronto
- Buying an Older Home In Toronto’s West End
- Semi-Detached or Detached: Which Has the Better Resale Value?
5) Falling in Love with Furniture or Decor
Gorgeous staging can help you envision living in a home, but don’t put too much to stock into surface appeal. While that beautiful leather sofa set or elegant area rug might pull the room together, chances are good that they won’t come with the place. Even if they do (you can sometimes bargain for decorative items during the negotiation process), they won’t make up for the major flaws that you may fail to notice. Instead of committing to a home based largely on its decor, create detailed criteria to follow.
Think of all of the attributes that you absolutely must have, but be strategic about them. As you consider what you really want, you’ll likely realize that some of these features are not as crucial as you thought.
Now that you know what mistakes to avoid, buying your first home can be a seamless and positive experience, especially with the help of an expert West End real estate team!
Ready to start the search for your next home? Get in touch at info@sidorovainwood.com or call 416-769-3437 and we can walk you through the entire selling process, from beginning to end!
