Buying a home for the first time is a daunting task. With so many factors to consider, the process is no small feat for a first time homebuyer.
We cover the top 3 biggest mistakes first time homebuyers make and provide advice on how to avoid making them.
1) Not being prepared to buy
The first mistake that first time homebuyers make is not being prepared to buy a home.
This may seem obvious however, there is quite a bit of prep work to be done before offering on a home. You want to make sure you know what kind of home you want. Moreover you need to figure out your wants, needs and non-negotiables of your potential home. In addition, you want to be pre-approved for a mortgage and have your financial situation in check.
The last thing you want is to find your dream home, only to find out you are not ready to put an offer in yet. With the fast pace of the real estate market, your dream home may be gone by the time you are ready to offer.
So make sure you get all the prep work done before the real house hunting begins! From location to pricing, there are many factors to consider when buying a home for the first time. Be prepared and determine your personal situation and home criteria before shopping around.
2) Attempting to time the market
Timing the market is not realistic. As with any type of investment, real estate is the same when it comes to trying to time the market. No one can do this with consistency and accuracy.
If you are interested in evaluating the real estate market then understanding the Sales to Active Listings Ratio is important. This helps determine whether you are in a Buyer’s Market, Seller’s Market or a Balanced Market. Buyers have an advantage in a Buyer’s Market and vice versa.
With that said, trying to predict the market is tricky. There are so many variables to consider and making predictions is a risky game. The best anyone can do is to evaluate your personal situation and try to make the best purchase you can given the current market.
One way to ensure you are making the best decision is to work with an experienced realtor. They understand the local market and know what to look out for no matter what kind of a market you are in. Skilled realtors are also able to negotiate fair prices for you and can advise on unique situations you find yourself in.
Realtors working in specific areas are constantly watching the market and checking out homes every day. So make sure to research a local realtor in your area and find a suitable realtor to work with. For example, if you live in Vancouver, BC then you need to find an experienced Vancouver realtor who knows the local market inside and out.
3) Thinking every home on the market is a good purchase in a buyer’s market
Another mistake that buyers make is they assume every home is a good purchase in a buyer’s market.
Being in a buyer’s market does not automatically mean every home is a good buy! Buyers have an advantage as there are many homes on the market for their choosing. However, that does not mean each home is listed at fair market value.
This is when working with a skilled realtor is especially helpful! Realtors are able to look at market comparables to determine the fair price of a home. Furthermore, they look at the specifics of the neighborhood and the home itself. Assessing all factors is necessary to put in a fair offer that will be accepted by the sellers.
The type of market you are in does make a difference in certain ways. The level of competition you face against other buyers on the market varies. However, what does not change is the fact that you must assess your personal situation and try to make the best purchase you possibly can given the current market and circumstances.
Choose the right realtor as a first time homebuyer
Finding a good realtor to work with will make all the difference in purchasing your first home. You want someone who will be on your side all the way through. Experienced realtors help guide you through the real estate journey, which can be an emotional one for many.
Buying a home is one of the biggest purchases you make in your lifetime. Thus, having the right people by your side is necessary.
Once you have all the right people and factors sorted out, buying your first home is an exciting process! If you are in Vancouver BC and are looking to buy a home, check out local Vancouver realtor Leo Wilk to help guide you through the process of buying Vancouver real estate.
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For more information on real estate market in Vancouver, current trends, buying a home or selling a home, contact Leo Wilk – Your Top Vancouver Realtor.
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