Parents are basically hardwired to give their kids advice, but even if it’s given with the best of intentions, sometimes it could actually do more harm than good. According to Toronto-based realtors at Strata.ca, plenty of well-meaning moms and dads are steering their kids towards disaster while helping them shop for their first home.
Strata agents Sam Massoudi and Jenelle Tremblett recently shared the worst real estate advice they’ve heard parents give their kids in hopes that future homebuyers don’t make the same mistakes.
“The truth is many [parents] remain disconnected from today’s market and how things work,” Massoudi said.
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According to Massoudi, one client passed up on a place that he loved because his parents were turned off by the scuff marks on the walls. The decision cost him $11,000 when he finally found another property two months later instead of spending $1,500 on painting the previous unit.
Another terrible piece of advice parents give their kids is to put in low-ball offers that are well below the asking price. The realtors claim that not only is this strategy ineffective, but it also offends the seller.
“Parents who tell their kids to use this strategy are not understanding how competitive this market is,” says Strata.ca realtor Jenelle Tremblett. “Follow the lead of your realtor as they know the pulse of competition, and can properly advise if low-balling is even worth your time.”
Some parents also tell their kids to use the listing agent as opposed to getting their own realtor as a way of saving money, but according to Tremblett, this decision doesn’t benefit the buyer at all.
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“The seller’s agent represents the seller, so they don’t owe you anything in the negotiations,” she said. “Everyone deserves their own representation, which is why you need to get someone in your corner if you don’t want to overpay.”
Finally, one piece of advice that the realtors want first-tome homebuyers to avoid is to think of their first property as their “forever home.” Given how expensive property values are in the GTA, it’s better to gather equity over time by starting in a modest home and working their way up.
