Buying Real Estate in Durham Region: 7 Mistakes to Avoid
When buying real estate in Durham Region (Whitby, Oshawa, Uxbridge, Brooklin, and all of Durham Region) there’s always the risk of making a mistake that could cost you a lot of money. That’s why we’ve prepared a list of some common mistakes to avoid:
1. DON’T LET EMOTIONS GET THE BEST OF YOU
Real estate agents say emotional mistakes are common among homebuyers, who overpay for their "dream homes" because they let feelings cloud their judgment.
But buyers shouldn't beat themselves up for getting emotional. Buying a home is often the biggest purchase a person will make. Homebuyers need someone in their corner who can counsel them and make sure they are making a smart investment, not an emotionally driven purchase. We will always make sure that your emotions don't get the best of you.
Every market has its up and downs, but today's market has conditioned homebuyers to make the mistake of thinking there's always a better deal just around the corner. Even in the best of markets, we cannot predict what will happen tomorrow. There are no promises that a bigger, less-expensive home will not come on the market the day after you close on this one.
This might have worked when finding your partner, but in real estate... it’s not a good thing. With real estate, there should be no such thing as love at first sight. Buyers should look at no less than five properties before signing any contracts. It's easy to fall in love right away, but jumping on the first or second home that a buyer looks at will often result in buyer's remorse, overpaying and the inability to sell at a reasonable price down the line.
Infatuated buyers who leap at a property tend to overlook the value of the process itself -- from inspection to appraisal.
Every buyer wants the perfect home, but unfortunately it may not exist. It is concerning when homebuyers insist they've found the perfect home and are eager to make an offer.
On the remote chance that a buyer does find perfection, the emotional attachment will sometimes become so high that the buyer will overpay or overextend themselves financially. On the other hand, some buyer's expect perfection and can not look past paint colours that suit their specific tastes.
All homebuyers want the lowest possible price, but there's a big difference between firm negotiating and lowballing.
Lowball offers run the risk of being rejected out of hand or lengthening the process and annoying the sellers. If a property has just been listed, the likelihood of the seller excepting a lowball offer is reduced. If the home has obvious deficiencies, firm negotiations can be implemented with positive results.
6. DON’T MAKE A LOW OFFER OR CONDITIONAL OFFER WHEN THERE ARE MULTIPLE OFFERS
When there are multiple buyers interested in the same house, it will most likely sell for a price that is much higher than the list price. The rules for multiple offer presentation requires the listing agent inform all interested buyer agents of the number of offers on any given listing. The agent in turn keeps their buyer informed. The buyer who is determined to procure this house will typically up the ante every time their agent informs them of more and more interested parties. So why would you instruct your agent to present an offer on your behalf when the chances of you procuring this house are very slim, at best?
In competition you are not likely to procure a house well below the list price or with a condition in your offer. The more offers that are registered for a property, the greater likelihood the committed buyer will increase their offer. What you are actually doing then, by submitting a low offer, is encouraging the buyer who really wants the house to increase their offer price.
7. DON’T BUY UNLESS YOU HAVE CONSIDERED ALL FUTURE RESALE FACTORS
There are many factors that will affect the future resale value of your home. Some of these factors are unforeseen but many are apparent and should be considered. We will always provide you with our expert opinion to protect your investment.
LOCATION LOCATION LOCATION. This will always be the most important factor determining the value of your home. Try to avoid buying a house next to a gas station, near hydro lines, next to a subway station, next to an apartment complex etc.
Try not to fall in love with the most expensive house on a given street. We will show you comparable homes that have sold in the neighborhood and you should notice a pretty significant price difference. The “dream” home is undoubtedly selling for a price range far in excess of comparable homes. From a resale perspective, this is a bad idea.