10 Ways to Avoid Common Mistakes When Buying & Selling Your Home
/Save yourself money, stress and perhaps most preciously - your time - by avoiding the common mistakes so many make when buying or selling their home.
#1 | Do Your Research.
It may sound obvious, but knowing what you want isn’t always so clear cut. Sometimes knowing what you don’t want is an easier route to making your selection.
Curious about a neighbourhood or the history of a home? Ask the neighbours, ask around, and certainly don’t forget to ask Dr. Google. A quick internet search on the address, neighbourhood, home builder, or mortgage broker you’re wondering about, is a surefire way to access information (mind you, it will still require some sorting.)
#2 | Hire a Professional.
Speaking of sorting - that’s pretty much what we’re here for! We, as registered real estate professionals, sort through a ton of information to match up your preferences and budget. The best part? It’s quite literally our job to keep your best interests protected along the way, giving you insurance, assurance, and best of all - peace of mind.
For tips on How To Choose a Realtor that Fits - stay tuned for my upcoming article with tips to make the best selection for you. One thing you can do in the meantime is be sure to do a quick reference check as to the status of any agent’s registration (before signing a representation agreement, of course) by using the ‘Registrant Search’ tool at www.reco.on.ca.
#3 | Be Clear.
The only thing more important than clearly communicating with your realtor in this process is ensuring you have an honest understanding of what you really, truly want and need. Be sure to make note what you would consider a “deal breaker,” and ensure you have a mutual understanding of desired elements. I find it is often a good idea to write your list of criteria in order of (collective) priority. WARNING: It may sound easier than it is.
#4 | Read. Read. Read.
Real Estate contracts can be long and arguably not the most stimulating literature one could select to read. That said, I cannot stress enough the absolute importance of making reading your contracts an uncompromising habit that will save you from potential headaches down the road. Take the time to read through the details - it may seem like a daunting task but think of it this way - you will be responsible for your contractual obligations once you sign off so it’s paramount you understand what you’re signing.. (See #2 to make this process much less intimidating.)
#5 | Hold the Tissues.
There’s no doubt - buying and selling your home is an emotional journey. It involves a series of important decisions, some fairly significant financial allocations, time and energy. It also gets emotional when you fall madly in love with a property and are tempted to venture from your agreed-upon budget or overlook those little things on your “deal breaker” list that all of a sudden don’t matter as much to you… this is not usually a good idea.
Sticking to your budget, keeping in mind the importance of home inspections, and remembering that market conditions can’t force you to overlook those important things without your explicit permission.
Do not overextend because you love the vintage clawfoot tub (trust me!) You're much better off making a note of the things that made you fall in love with the home and seeing how you can source and incorporate them into your new - affordable - home.
#6 | You Know What They Say About Making Assumptions… Just Don't.
Following the first 5 steps will offer you a certain level of protection, but this one is particularly important - DO NOT MAKE ASSUMPTIONS! And know, this is easily done. Best way to avoid confusion, See #2.
You can also avoid assumptions by following rule #1 and doing that research. Knowing the difference between a chattel and a fixture for example, will help you get a better understanding of what’s included - and what won’t be there when you take possession. Be sure to list the items you expect to be included, referred to as chattels, in your agreement to avoid any confusion down the road.
#7 | Pay Attention.
Not only are you purchasing a home, you’re electing to become members of the community, new additions to the neighbourhood. When visiting your prospective home, check out the neighbourhood and pay attention to what you see. What local amenities are there, where are the schools, paths, what is the overall level of upkeep in the immediate neighbourhood? I always suggest grabbing a bite after a showing somewhere nearby and striking up a conversation with the locals to gain some insight.
#8 | Dig a Little Deeper.
While we’ve established the importance of not letting “love at first sight” divert you from your savvy consumer approach, another reason to look past the wallpaper or fancy faucets is to get a real idea of the inner workings of the home itself. From wiring and plumbing, to insulation and more - it’s important to know what’s behind the walls, how old the systems in the home are, and if proper permits were acquired for any updates made since the last sale. Dig deep, ask questions, avoid headaches.
#9 | Avoid the He-Said, She-Said.
There is a time and place for verbal agreements, and although it would be nice, real estate transactions simply aren’t one of them. Get it in writing, every time.
#10 | Don't Forget It Costs to Close.
This one warrants an entire blog all its own (which is currently in the works) but for the moment let me elaborate a bit on what I mean. The cost of purchasing a home can rise quickly when the additional costs associated with that transaction are considered - from lawyers fees, home inspections, land transfer taxes, title insurance, you name it. It’s important to have an accurate idea of your purchasing power and to consider all of these factors when deciding if a home meets your needs and budget.
Again, for a better understanding of all of these important elements, see #2.
If you have questions or comments, please leave them below!
Thanks for reading.
- Rachelle