We’ve known enough new homeowners to know that buyer’s remorse is a legit thing. No matter how much you love the home and how confident you are about it, a purchase that big tends to make us mere mortals second guess part or whole of the decision. So, as first-time home buyers ourselves, we decided to seek expert advice on how to avoid all that regret.
Our expert: Sara Murray.
Sara has been helping clients find their dream homes all over the world AND not regret their decision. So, we teamed up with her to bring you this list of 5 absolute must-knows for first-time home-buyers that will help you make a confident choice.
Realtors are not an out-of-pocket expense to buyers
People often don’t take advantage of a realtor’s expertise and slog through the daunting home-buying process by themselves out of fear of another expense. But that’s pure ignorance. For one, you as a buyer don’t pay for the realtor commission. That amount is included in the purchase price. For two, your realtor has a legal obligation to act in your best interest. So, their value far exceeds the cost of services.
Purchase commitments should not be made without financing conditions
Sellers often give preference to buyers who sign purchase offers without financing conditions. While this is beneficial to the seller, it certainly is not ideal for the buyer. Homes are sometimes assessed by lenders at a lower value than the actual sale price. Meaning your mortgage will be approved for less than what you have to pay and the difference has to be covered by you. And if you’re unable to fulfil the commitment, the seller can even keep your deposit and/or sue for damages.
Many new home builders are no longer guaranteeing purchase pricing
New homes take up to a year or more to be ready. And depending on market changes, the price of the property could go up by that time. It’s for this reason that many new home builders now are not guaranteeing purchase pricing and increasing it at the time of sale. And you as the buyer are required to cover this increase in pricing that could amount to tens of thousands of dollars. It’s times like these where a realtor’s knowledge can save us.
Quick and informed decision-making is key
Delayed decision-making in today’s market is just as bad as ignorant decision-making. But given the pace at which homes go off the market, buyers either end up missing out on their dream home or making rash decisions. This is why it’s important to have a realtor by our side. A realtor acting in your best interest ensures that your decisions are without unknown risks to you. For example, they will warn you of the consequences if you’re paying above market value for a property with an emotional attachment.
Winning negotiations aren’t exclusive to price
If you think the highest price always wins, you are much mistaken. There’s more to negotiations than just pricing. For example, the seller may be adamant about a specific possession date. Or a home inspection could reveal repairs that are required which can be used for negotiation. As long as communication between all parties is quick and responsive, your chances of winning are considerably high.
Feeling empowered with all this real estate wisdom?