Pitfalls of Buying a New Home
The purchase of a home is one of the biggest transactions you will make. That’s why even after determining your budget and choosing the type of property you want, you will still need to keep a watchful eye on yourself.
Beware of love at first sight
Always remember that you are buying the house, not the interior decorations. Though it may be impeccably designed with beautiful furniture or attractive artwork, that house may not really suit your needs.
When visiting a house, always take along your list of priorities. Focus on the home’s architecture, layout and size of rooms. Does the house have enough space and the right number of rooms? Remember that the larger the house, the higher the maintenance costs.
Avoid getting hung up on details. Don’t let a dirty carpet or unappealing décor put you off; Wallpaper can always be stripped, carpets can be replaced and minor defects can be corrected at little cost. Do, however, evaluate the cost of renovations.
What about the price? Is it within your budget? Becoming house poor – meaning buying a house with monthly payments that are too high, could seriously hamper your quality of life. It could also prevent you from maintaining it, furnishing it or decorating it to your liking. Working with a real estate broker who knows the local market will help you to make a wise purchasing decision.
A good broker will educate you on the price of comparable houses that have recently sold in the neighbourhood you are interested in. In this market, list price is almost irrelevant as many homes sell for way over the asking price as emotional bidding wars tend to drive up prices. You really need to look at what comparable homes have sold for to get a better sense for what you should be offering. It’s also important to know how many other buyers you’re competing against before putting in your offer.
A home’s size is not always a valid measurement to compare two properties. For the same price, a smaller house with a superior layout can sometimes be a better investment and offer a better quality of life than a large house with higher maintenance and furnishing costs.
Make the right compromises
There is no such thing as the perfect house and very few people are lucky enough to actually get their exact dream home. This means you will need to make compromises and give up certain features. But this doesn’t mean you should compromise on your priorities. Stick to your needs and your budget as closely as possible. Your quality of life depends on it.
A knowledgeable real estate broker is your best advisor, so take the time to discuss these issues together before visiting properties and making an offer.
If you would like any advice or recommendations all you have to do is call 514-700-2604 or send an email to email@example.com. Consider joining the Homeowners Advisory Club. It’s the first real estate concierge service designed to help you protect and maximize the value of your home over time.