The 4 Most Common Mistakes Made When Buying A Home

Buying a home is one of the biggest purchases of your life and you want to be cautious that you don’t make any mistakes that you’ll regret later on. Here are the top four most common mistakes made when buying a home, along with tips on how to prevent yourself from doing them or how to recover if you have already made them.

Mistake #1: Not Getting Pre-Approved

The biggest mistake made by homebuyers and is the first thing you should do if you plan on buying a new home!
How to Prevent: Easy, get pre-approved! By getting pre-approved, you’ll be able to search for homes that affordable for you, while also putting you in a strong negotiation position when you make an offer. A Realtor can provide you contact information for a qualified mortgage specialist.

Mistake #2:  Not Using a Qualified Agent

Why use a Realtor?  1.  Convenient  2.  Market Knowledge  3.  Insider Knowledge  4.   Identify Your Needs  5.  Access to Comparables and Sales Information  6.  Professional Negotiation  7.  Mitigater of Emotions  8.  Professional Connections  9.  Knowledge of Industry Standards, Legalities and Writing a Contract  10.  Buyer’s agent is free! 
How to Recover: It’s never too late to get an Realtor, even if you’re already at contract, they can help with all the legal and negotiation aspects.

Mistake #3: Not Getting a Thorough Inspection

Getting a thorough inspection is the only way you’ll know you have real knowledge about the house.
How to Prevent: Hire a licensed home inspector. They take the emotion out of inspecting a home and give you a real, critique about the home you’re thinking to purchase.
How to Recover: If you didn’t hire a home inspector, try to get a good home warranty in case any issues do arise in the future.

Mistake #4: Focusing on Wants, Not Needs

This mistake is usually made by first-time homebuyers, but can happen to even the most experienced homeowner.
How to Prevent: Make a list of must-haves and refer to it when you’re house hunting. Make sure it is a list of NEEDS not WANTS.
How to Recover: If you’re in negotiations and realize you made this mistake, try using provisions of contract to either get out of the deal or fix the issues before you close.

WHY IS BUYING A HOME A GOOD IDEA?

The Best Investment

As a fairly general rule, homes appreciate about 4-5% a year. Some years will be more, some less. The figure will vary from neighborhood to neighborhood, and region to region.

5% may not seem like that much at first but you could easily earn over the same return with a very safe investment in treasury bills or bonds (stocks).

For Example...

Presumably, if you bought a $200,000 house, you did not pay cash for the home, you obtained a mortgage. Suppose you saved and put as much as 20% down – that would be an investment of $40,000.

At an appreciation rate of 5% annually, a $200,000 home would increase in value $10,000 during the 1st year. That means you earned $10,000 with an investment of $40,000. Your annual "return on investment"  would be a whopping 25%.

Of course, you are making mortgage payments and paying property taxes, along with a couple of other costs. However, since the interest on your mortgage and your property taxes are both tax deductible, the government is essentially subsidizing your home purchase.

Your rate of return when buying a home is higher than most any other investment you could make. 


**It is such a great way to get ahead in life and plan further into the future. It doesn't matter on your income, high or low, finding out if you qualify for a mortgage is free.** 

Contact me for further details. Any consultation/discussion is free of charge

LOOKING TO BUY ANYWHERE IN THE WORLD?

Whether you are looking to buy somewhere in Canada, The United States, Mexico, Costa Rica, or another Country, I can assist with this process. I work with a group of dedicated professionals who have chosen to specialize in the challenge of moving lives and integrating them seamlessly into new surroundings. 

We’re More Than Realtor®s, We’re Friends
Many of our clients have bought or sold homes in the past, but few are prepared for the exceptional level of customer service that their relocation specialist provides. We work closer to our clients for longer periods of time. We’re always there to provide needed information and an objective opinion and as a result, many clients become genuinely close friends. We have associates working all over the world who work together to help people find the perfect home. You don't have to do this alone, you don't have to hope that the Realtor you locate on your own is educated, professional and has the time for your needs. I work with one of the most advanced Relocation Outfits in the world. Don't hesitate to ask about our services. 

You pay us nothing to assist with your buying process!!

Amber Prue - Realty Executives Challenge

Economic & Housing Statistics

Edmonton, July 5, 2011: Economic and other external indicators point to a strengthening of the local real estate market according to the REALTORS® Association of Edmonton.

• Statistics Canada reported that Alberta boasted the highest spike in population in the first quarter with a 0.4% increase.
• The Conference Board of Canada predicts that housing prices in Edmonton will increase from five to seven percent in the short term although local prices are currently down when compared to last year.
• Although the Bank of Canada seems reluctant to raise interest rates because of the negative impact on exports, CMHC reports that Canadians are budgeting for an interest rate hike.
• While housing prices nationally are up by 8.6% (May figures) Edmonton prices are tracking predictably in a stable market.
• CIBC is of the opinion that Alberta home prices are over-valued by 17% yet RBC names Edmonton amongst the most affordable major metro markets in Canada.
• A report by Peters and Co. forecast that $180 billion will be spent on new oilsands projects in the next decade with current oilsands operations and maintenance adding another $30 billion a year.

How Realtors Help.....   Call Amber 780-906-0693 or email amber.prue@gmx.com