The path to homeownership in Toronto is both exhilarating and challenging, especially for first-time homebuyers. The city's real estate market is complex, and making an informed decision is crucial to avoid common mistakes. Below I break down 10 of the most common mistakes I see first time home buyers make when buying a home.
Not Having a Budget in Mind:
Not having a budget, is like going shopping without a credit card balance. If you don’t understand your numbers, you may end up falling in love with a home you can’t afford, leaving the options within your range unappealing. Knowing your budget will make the process much smoother! Remember to consider additional costs like closing costs, legal charges, and land transfer tax.
Not Getting Pre-Approved for a Mortgage:
Getting pre-approved gives you a clear picture of how much you can afford, both purchase price and on a monthly basis, and allows you to make quick decisions when you find a place you like. This is the first step in your house search!
Insufficient Research On the Toronto Neighbourhood:
Factors like crime rates, proximity to amenities and transit, and property value growth potential are important when choosing a neighbourhood. I always suggest spending time in an area before or after a showing.
Skipping the Buyer’s Agent:
A buyer’s agent can simplify the home buying process and help you with strategic negotiation. Some agents have access to exclusive listings that never make it to the market, and they do a lot of the leg work for you when finding properties that are well suited to your needs. Remember, the listing agent has a fiduciary duty to the seller to get them the best deal, and it's important to have someone in your corner too.
Failing to Get a Home Inspection:
A home inspection is always recommended when purchasing a freehold home, as it can unveil potential issues with the property, saving you from future headaches and helping you budget accordingly.
Being Unprepared for a Fast-Paced Market:
Toronto’s real estate market moves quickly. Having your financial ducks in a row allows you to act swiftly when the right opportunity arises.
Overextending Financially:
It's tempting to look at homes outside your budget, especially in a competitive market. Stick to your budget to avoid financial strain and buyer’s remorse.
Inflexibility in Neighbourhood Choice:
Exploring different neighbourhoods in Toronto increases your chances of finding the right home within your budget. Stay open minded and explore a few areas.
Ignoring Closing Costs:
Apart from the down payment, remember to budget for closing costs like land transfer tax and lawyer fees. Your realtor should be able to give you a ballpark of this cost before you get started.
Low-balling in a Hot Market:
It is important to understand the market and offer accordingly. If the market is slower, or the property has been sitting for some time, you can negotiate. When we are in a hot market and there are multiple offers on a home, try to put your best foot forward, as you may not have a chance to improve.
Buying a home in Toronto is a significant milestone. Being well-informed and avoiding these common mistakes can make your home buying journey enjoyable and successful. If you need guidance, feel free to book a call and navigate the Toronto real estate market with confidence.
_____________
#torontorealestate #torontorealtor #firsttimehomebuyertoronto #firsttimehomebuyer #FHSA #homeownership #torontocondos #buyingacondointoronto
Rescue Dog Mom & Volunteer 🐕
Award Winning Toronto REALTOR®
I Love First Time Home Buyers 💕
Comments