Whether you’re buying your first or your 10th home to live in or invest in, tune in to Episode 368 for all of the details you'll want to know. Here is our list of the top five things that Buyers need to be aware of: Waiting for the market to cool off. The market has only cooled off three years out of the last 30. Waiting for the market to cool off, it’s probably going to bite you. If this is your year to buy a house, don’t wait.
Keep your credit clean. Buy nothing on credit until after closing. Not even a “don’t pay a cent event”. They may do a new credit check right before closing and if you don’t qualify right before closing, they’ll pull the mortgage.
Money margin. Money margin is the unexpected costs that are expected but maybe you don’t know about them, things like taxes. When you buy a property expect that you’re going to have to pay half a year’s taxes up front, on closing. Appraisal margin. What this means is, you buy one of those properties and you bid it up and you had 20% to put down. You thought you were fine and then they do an appraisal before closing and tell you that it is not really worth quite what you paid, according to the appraisal. And so they want some extra money from you to top up so that you still have 20% in on the value. Having some margin, very important.
Bidding too high. Who wants to pay over asking? Some people need to pay over asking; nobody wants to. Unfortunately, there are things that cause the buyer to pay more than the home is worth. It's like an "auction feeling". I don’t know about you, but I find that most of society if they go to an auction and there’s something they want, they can get carried away.
You need the support of experienced professionals, which means a building inspection or septic inspection. If it’s a rural property, a well inspector. It may mean a mold or environmental inspector. A mortgage specialist is an experienced professional that you absolutely want on your side.
Bonus 5.1 We would be delighted to sit with you for a consultation. We can start with a 15-minute phone consult. It doesn’t cost you and it will give you an idea of what your next best step will be so that you don’t pay 5%, 8%, 10% or 15% more for the property because you waited and, you could have done it now. And if you can’t do it now, at least you have a strategy and you’re not missing an important element when the time comes.
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