Performance Realty
Brokerage, Independently Owned and Operated
(613)-238-2801

 

Barb Reynolds
Broker
Jenn Reynolds
Sales Representative


Buyers


Considering a Move?


Your New Home Wish List


6 Common Mistakes


Closing Costs


Moving to Ottawa


 
 
  
6 Common Mistakes Buyers Make 

Buying a home can be a stressful time - or it can be an informative and fun experience!  Learning from other buyers' mistakes will help make the difference for you.  Here are some common mistakes that buyers make:

 

1.  Not working with a Realtor®

Prior to 1991, under the guidelines of the Real Estate and Business Brokers Act, all Real Estate agents had to work for Sellers, even if they were helping Buyers to find a home.  Thankfully, now a Buyer can choose to have a Realtor® represent them and work on their behalf.  Buyers can now receive the same legal relationship that Sellers have had for nearly 100 years.  A Buyer who understands their options will typically want to connect with their Real Estate Representative early in the transaction in order to avoid potential conflicts of interest by calling various agents whose name is on the "for sale" sign.  A skilled Buyer Rep will add tremendous value to the Buyer throughout the whole transaction, from start to completion.

Think of how large an investment this is for you- shouldn’t you use the right Realtor® to guide you through successfully?

 

2.  Believing that buying a "for sale by owner home" without an agent will save you money.

Homeowners who are selling their own home generally do so for several reasons: to save on the commission costs; so as not to have to disclose flaws/ problems with the home; or because they have had several agents in to give them a market value but find them all too low, because the seller feels that their home is worth more.  While in every home you purchase, there will be a few "surprises" you can minimize your risk by having the guidance and assistance of your Buyer Representative, who knows the market, knows when you are paying too much and can protect your interests throughout the process.  

 

3.  Not getting a home inspection

The cost of a home inspection will well worth the invaluable information you will obtain as part of your pre- purchase inspection. Not only will the inspector look for flaws within the home, he/ she will also give you tips on maintaining the home over the next few years.  While your agent will look for visible problems during the search for a home for you, the home inspector is the expert, and will check all of the major home systems, saving you time and money later on. Even if you are buying a home that is newly constructed- having a home inspection done as soon as you move in is the absolute best money you will spend! 

A home inspection is always money well spent.

4.  Thinking you can find your home through the internet alone

Once you have the "moving" bug, you will find you want to look at homes on the internet all day long! And certainly you can rule out many homes this way- check the room sizes, if the bedroom you have now is too small, you may want to eliminate homes with bedroom sizes that are not big enough. But remember that pictures sometimes do not do justice to the "real thing" and room configurations aren't noted on a listing. Many times there are no yard photos- and we all know you can change the house but not the location- perhaps you are missing out on something that could be wonderful!  As well, when properties are listed on the Multiple Listing service,( mls)® all Realtors® have access to the listing immediately.  The public will not see the new listing for a day or two- and in that time, a savvy Realtor® will have notified his/ her clients  and made appointments for them to view it. Do you want to take that chance?

 

5.  Letting emotions get in the way of success

We all know that the buying of a home is an emotional experience. Even those who purchase investment properties can get caught up in wanting to purchase a particular place.  We want to fall in love with a home, to have that "feeling" that tells us "this is the one"!  We know first hand that that can happen, more often than not.  We have seen people walk into the first home of the day and tell us  "cancel everything else, this is it"!  We have also shown dozens of homes before someone found what they were looking for. And we have seen buyers who wanted to rush to an offer on a property, but we have suggested waiting for another, because of certain factors that we have known would be detrimental to them.  When a market is hot, “sleeping on it” may lose an opportunity to be the only offer, or worse yet, to have the property sold overnight.  And then there are times when a buyer may have a price in line and not be willing to come up an extra $500/ !000. We will always try to get you the best price!   But sometimes the sellers just will not come down as much as we would like.  When you realize that Ottawa ’s prices do not rise and fall like other major cities in Canada , spending an extra thousand or so when interest rates are so low- comes to pennies a day.  Chances are if you stay in your home for several years, the home will increase in value, and that thousand dollars will be long forgotten.  Even spending an extra $5000. over 25 years, with a rate of 4%  equals an extra $26.31/ month  or an extra $13. every 2 weeks! For the home that you want, it may be well worth it!

 

6.  Bargain shopping - a Deal or a Steal?

As a buyer, we understand that everyone wants to find a bargain. It used to be that that meant finding a Power of Sale / Repossessed home. But since lending institutions are legislated to try to get market value for any properties they take over and sell, there are few real bargains out there. We have seen many foreclosure properties sell for well over asking!  Every once in a while, though, we will see a property listed that is a great value- perhaps the sellers just want to have the home sold quickly, perhaps the listing salesperson was trying to invite multiple offers by listing low, or perhaps the home really needs a lot of work and the price reflects it.  Reading through a listing can tell a lot. If there are no “wow” or “renovated” words, the property probably has not been updated. One that says it “needs your touch” generally means it needs a lot more than that.

Nobody wants to add their own personal touch to a cracked foundation.

When we offer a price on a home, we will take into consideration  other comparable sales, market trends, and market value.  At times we need to put ourselves in the seller’s shoes. If the property were reasonably priced and an offer were to come in at $30,000. less than the listed price, sellers generally are offended.  They feel the buyer is not being serious, they’re just trying to “steal” the home.  Sellers oftentimes then will not come up as much as they might have, and the buyer loses out.  A seller wants to sell- but to someone who they feel will want and love their home.  When we come in at a reasonable price and then negotiate from there, a buyer is more likely to get better terms and a better price.

 

Our best advice?  Let our experience work for you. As a buyer representative we can understand your needs and will work towards your goals and your best interests.


 
 
Tel: (613) 238-2801
Toll Free: 1-877-757-7386
Fax: (613) 238-458
3
165 Pretoria Ave.
Ottawa, Ontario
K1S 1X1
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