3 Serious Mistakes Homebuyers Sometimes Make

1. The Price Drop - Many buyers are holding off on buying a home they want because they are waiting for prices to drop. As smart as you think you are, you cannot sharp shoot the real estate market. You also need to keep the interest rates in mind; for example, if you wait long enough, and average prices to come down by 10%, but interest rates go up by a half a point, your monthly payments won’t go actually decrease. Prices are already fairly low right now, and so the best thing you can do is buy when you’re ready, regardless of what you think is going to happen with the housing market.

2. Don’t settle for the wrong town. Each town has its own personality, and a specific set of demographics and themes, such as transient, stable, young, old, liberal or conservative, families or couples, and much more. That being said, it wouldn’t make much sense for a family with young children to move into an area that consists of mainly older folks. Additionally, I recommend that when you buy a home, you stay for at least five years, which will, at the very least, allow for you to recoup the costs of the actual move. Five years is a long time; you should do your best to avoid sticking yourself in the wrong town for that long. It’s important to visit the town you’re considering moving to, talking to the residents, and looking up data on schools, local events, construction plans, and more. Many real estate agents can help you with this as well.

3. Don’t buy a fixer-upper if you don’t know how to fix it up. Before you assume that you can handle the stress, costs, and actual labour of renovating a home, volunteer with a local house-building group. This will give you an idea of what it takes to fix up a home. And don’t make the mistake of underestimating how much it will cost to fix the home…a small kitchen renovation usually costs between $25,000-$40,000. A standard bathroom renovation can cost you between $15,000-$25,000. Even painting a house costs between $7,000-10,000. Many buyers find themselves overwhelmed when they buy a home that is in a state of total disrepair, and end up doubling the original sticker price.

This las one is unfortunately quite common....know what you are getting into.

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