Buying your first home can be pretty daunting and it can seem impossible to know where to start when searching for a property in Canada.
Jordan Bieri, a residential real estate broker, chatted with Narcity about the biggest mistakes rookies always make and how to go into the process as prepared as possible.
From messing up negotiations and forgoing inspections to completely mismanaging your budget, there are plenty of ways that your real estate experience can go totally wrong.
Here’s a look at what NOT to do as a first-time buyer when starting your home search in Canada.
Giving up before even starting
Residential real estate broker, Jordan Bieri, told Narcity that one of the biggest mistakes rookies make is giving up before they’ve even started considering the process of buying a home.
He said that many people assume they cannot afford a property and opt to rent indefinitely, however, they could actually be mistaken.
“Many buyers will find themselves surprised with what they can actually afford, be it through government incentive programs or home buyer’s plan through RRSPs,” he said.
“The downfall to assuming buying capacity or lack thereof runs the risk of missing out on an opportunity that would’ve been within reach.”
He suggested consulting a real estate broker who can put you in touch with a mortgage specialist for free.
Making the right offer
You know what they say about assuming, right?
According to Bieri, it’s actually a huge misconception that all properties will be negotiable, particularly in the current housing market.
He acknowledged that while this was common for previous generations, things are starting to change.
“The market as we’ve seen it develop has shown that we run the risk of losing the property if we are not being strategic with the offer made,” he explained.
To make an educated offer, he said the buyer must consider a number of factors.
This includes comparable recently-sold properties in the same area (at least three), their listing price vs their selling price, how long those homes took to sell and the state of the current property in comparison to the ones sold (including things like renovations, views, garages etc.).
Misunderstanding your budget
Bieri says not understanding the costs associated with owning the home you want to buy is a classic newbie mistake.
He said many first-time buyers fail to consider the financial implications of things like property taxes, co-ownership fees (for shared dwellings), necessary upcoming renovations (roof, windows, paving ect.) and more.
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