If you are hunting for a home this spring you may be feeling the frustrations that many house-hunters in Toronto are suffering from. The demand for freehold homes has risen and with that demand the market has seen competition between buyer’s increasing.
For many this nerve-racking, hair-pulling, nail-biting market has proven too stressful. For some, it’s just plain non-sensible. This group of home buyers have, most likely, opted to remain where they are and thereby avoid the stress of this year’s spring market.
For other’s, however, this adrenaline-pumping, heart-racing, fast-moving real estate market has not changed their minds. It is for this group that I’ve written this post.
If you find yourself in this category you should be aware that in this type of market there is a chance that mistakes will be made. So, with that in mind, I’ve put together a list of common mistakes made by buyers. Check them out below and do your best to avoid them!
Real Estate 101: 4 Common Home Buyer Mistakes
- Not knowing what you can afford Before you enter a bidding war, make sure you understand (and I mean really understand) what you can realistically afford. It is so easy to get carried away in a highly competitive market – so understand your limit and make sure you can comfortably live within it. This link will take you to the CMHC’s Debt Service Calculator – a great tool for helping you decide the limit you spend on your new home.
- Not preparing your finances, or getting pre-approved If you are in a multiple offer situation, having pre-approval will definitely make your offer more attractive. Having the edge over other home buyers is key in this years’ market! Remember that getting pre-approved can take a few days and typically, once approved, is time sensitive.
- Not knowing your must-haves for a new home I suggest putting this list together really early on! Remember, things can be changed within the house relatively easily. Changing things in the neighbourhood, however, may prove more difficult! Check out this post for a checklist of criteria that you may want to consider on your home wish list.
- Getting emotions involved in the negotiations Buyers (and sellers!) will often let their emotions get the best of them in stressful negotiations. Remind yourself of this before, during and after negotiations!
If you need any further advice on how to make the process go smoothly, do not hesitate to contact me at chuck@charlesfrancis.ca or 416-558-7273.