Are you thinking about buying home in the near future? If so, I want to help you avoid the common pitfalls that home buyers fall victim to. Before you go house hunting with your realtor, make sure that you're aware of these crucial steps of the buying process. This is the sequel to my "5 Tips for First-Time Buyers" post, which you can read right here, if you haven't read it already.
Love at First Sight
When it comes to moving into a new home, the last thing I want is for someone to think that they've found the perfect home, only to develop feelings of buyer's remorse later on. Buying a home is quite possibly the biggest purchase you'll ever make, so it's important that you work with your realtor to find one that is right for you. If your realtor takes you to a home and you absolutely fall in love with it, let them know the reasons why. They will then be able to take you to similar places so that you can make the best possible choice before you start signing any paperwork.
Remember the Resale
Once you buy your home, you have free reign to customize it to your heart's content. Although you may want to incorporate some unconventional features (can anyone say pink feature wall?), just remember that you might have to return it to its former glory once it becomes time to sell. Be aware of any changes you make and budget for them accordingly if you decide to put your home back on the market. (To learn more about renovations that don't increase the value of your home, read this post.)
Hire a Home Inspector
Working with a home inspector is perhaps one of the best choices you can make when it comes to buying a home. They have no affiliation with the seller of the home and are free from any bias; in fact, under Alberta's Fair Trading Act, home inspectors are required by law to inform you of any issues they may come across during their examination. Even if you have plans to renovate the property, these experts will point out some flaws you might have missed and can offer a valuable second opinion.
Don't "Time the Market"
Don't listen to people who say that they can beat the market. Although trends do develop and experienced realtors know when it's a buyer's market or a seller's market, no one can predict with absolute certainty what the future will look like. There are many factors that can influence the marketplace, all of which can impact the price of your next home in varying degrees. You should also be aware of the opportunity cost of waiting for the market to be in you favour. I never want anyone I work with to feel pressured into buying a home; if you're ready to buy but you're not sure of what the market looks like or what types of homes are currently for sale based on your needs, it may be best to work with a realtor to see what your options are.
Buying a Car at the Same Time
Besides a home, one of the biggest purchases most people make is getting a car. Whether you have plans to swap your current vehicle to accommodate a growing family or you want to add another car in the garage, it's a choice that almost all families have to consider. But did you know that getting a car while you're going through the home buying process can increase your debt-to-income-ratio? Mortgage lenders will take your car into consideration when factoring how much you can afford to pay.
Getting a car loan is a much simpler process than qualifying for a home loan, so if you're ready to buy a home but you're thinking about getting a car in the near future, it may be best to wait until after you've purchased your home. For more information, I would recommend speaking with a trusted financial advisor to find out how you can make the best possible decision for you and your family.
As always, if you're looking to buy a home or you just want more information about the buying process, give me a call at 780-438-2500. You can also reach me at chris@proctorteam.com if you prefer using email; I promise you that I will respond to every inquiry as soon as I can. Talk to you soon!
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