TIPS TO AVOID THE BUYERS NIGHTMARE

Buying a new or a first home is a major investment that has a big impact on your life. When purchasing a home, we want to get it right! It should meet your needs in the best ways possible!
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Here are some important components that we as realtors consider when searching for the perfect home:

MORTGAGE PRE-APPROVAL
Pre-approval is fast, easy and free. When you have a pre-approved mortgage, you can shop for your home with a greater sense of freedom and security, knowing that the money will be there when you find the home of your dreams. It would be a horrible let down to be looking for a home in a certain price range to find out its not what you can actually afford.

HOUSE PRICE
How do you determine what price is necessary to make an offer on a house?    
What are the indications that the seller may be asking too much?            
How would you know if it’s just a great deal?
An understanding must be established between the buyer and the realtor in order to take full advantage of the current market situations. Houses need to be compared with the ones you may find appealing before putting an offer, and without the knowledge of current market value, it may lead to your offer being damaging to your own situations.
 
TITLE ON THE PROPERTY
Be certain, in the early negotiation stage that you will own your new home free and clear by having a title search completed. This is something your Lawyer can take care of for you. Just make sure it is something you have all the info on, before you remove your conditions and make the purchase a firm deal. The last thing you want to learn once your purchase is final; is that there are encumbrances on the property such as tax liens, undisclosed owners, easements, leases, etc.

UNDISCLOSED FIX-UPS
Make sure that you conduct a thorough inspection of the home before making the deal firm. We recommend to hire a professional inspector view the home inside and out. This inspector should be able to give you a report of any item that needs to be fixed with associated, approximate cost. It will cost you to hire an inspector, but its a little cost that could save you thousands of dollars and heartache.

HIDDEN COSTS
Ensure you identify and uncover ALL costs. When a transaction closes, you will sometimes find fees sneaking through after the sub-total  fees such as loan disbursement charges, underwriting fees etc. Make certain you know what you are paying to your lawyer or your realtor (I do not charge any commissions to my buyers). Talk to your Mortgage Broker or Lender as well and have them project total charges for you in writing.

REAL PROPERTY REPORT
As a term of the contract, make sure you request an updated property survey which clearly marks your boundaries. If the survey is not current, you may find that there are structural changes that are not shown (e.g. additions to the house, a new swimming pool, a neighbor’s new fence which is extending a boundary line, etc.). Be very clear on these issues. Make sure you know exactly what you are buying! The purchase contract document has included this requirement in its entirety. The seller must provide a new Real Property Report if there is changes as described above.

WAIVING CONTRACT CONDITIONS
Take the time to review all the paperwork and maybe consider getting your realtor to take you for a second viewing a day or two before waiving the conditions. Make sure everything perfectly reflects your understanding of what you are going to be getting once the conditions are waived.