In a recent post, we gave some of the steps in Buying a Home. We will now look at some of the common errors buyers make so that you can avoid them.
- Decide early what you need (size) and plan also for future before you start looking at homes. For example, will you need a larger home because –
- Your children are growing up;
- You plan to have more children soon;
- Your elderly parents or in-laws will be moving in with you shortly.
- Get pre-approved from the mortgage-lending-institution of your choice. This way you will know exactly how much you can afford to pay for a home. This will not only help you with your real estate agent as he or she will realise that you are serious and will therefore try harder to find a home that you like, but also could assist in the negotiations with the seller as they know the chances of the deal closing are very good.
- Shop around as it is generally a good idea to look at several homes before making a decision. Besides seeing what is available, it also gives you an idea as to the value of homes.
- Do not be afraid to negotiate as it is the key to get the best deal possible! If you know why the owner is selling, it may help you in your negotiations. Similarly, do NOT reveal too much information about your motivation for buying as it could work against you!
When calculating the price of the home, do not forget to cater for Closing Costs on the transaction. These can come up to a significant amount depending on the selling price of the property. For a free estimate of these costs, please feel free to contact us.
(To be continued)