Shopping for and buying your first home can feel like a stressful event. Here is a list of a few of the most common mistakes first-time buyers make, and our suggestions on how you can avoid all of them:

1. Getting A Bigger Mortgage Than You Can Actually Afford

First things first: start with a realistic budget. Take a look at your expenses, less your rent, and see what is leftover at the end of each month. What can you reasonably afford to add to your expenditures, and be comfortable with? This monthly payment will likely be lower than what you qualified for when you met with your mortgage broker or financial institution. 

Be sure to use a mortgage calculator when you are running the numbers, entering the quoted rate you received when you obtained your pre-qualification. Also consider large expenses that come up when you own a home, such as repairs, upgrades, property taxes, and condo fees. In addition to your mortgage payment, you will need to set money aside to pay for these additional items.

2. Limiting Your Search & Searcher

Relying solely on open houses and Realtor.ca when you are shopping means you are missing out on the hottest homes. Working with a real estate agent ensures you will receive access to homes as soon as they hit the market, not 24 hours later when they appear on real estate websites. Real estate agents also have access to information that the public does not, such as undisclosed property information and exclusive listings that do not appear online.

Limit yourself to working with just one real estate agent. Your relationship with your agent is key to purchasing the right home for you and your budget. Ask your friends and family for referrals, and meet with a few different real estate agents before you make your decision. Finding an agent who has a clear picture of your unique needs is critical, as is committing to just one Realtor. If your agent knows you are working with multiple agents, they are less likely to spend the time and effort to it takes to find you the right home. Committment from both parties is essential.

3. Not Thinking About Your Second Home

Yes, you are searching for your first home. But the liklihood of your first home being your forever home is very low. Eventually you will be shopping for your second home, and will need to sell your first purchase. It's time to think long-term right now. The resale ability of the home you are buying right now needs to be top of mind. 

Consider the length of time you are likely to stay in this home. Will it appeal to buyers down the road?

4. Your Purchase Is Solely Motivated By A Homes' Decor

This is a tough one for most buyers. Most homes on the market are professionally staged before they are placed on the market. The photos online are stunning, and when you walk through in person, the colours pop and you can imagine yourself living there. 

You must look past the decor, and know that the furniture, accessories and art do not come with the home you are buying. The important details you must look for are quality of finishes, such as flooring, light fixtures, upgrades, renovations, and landscaping. Purchasing a home that doesn't quite look the way you want it to today allows you to make upgrades that suit your tastes, and will also build equity in your new home.

5. Not Getting A Home Inspection & Doing Your Due Diligence 

Making a home purchase is a very emotional experience. Reason must be prioritized over excitement. 

Getting a home inspection is non-negotiable. Your real estate agent can make your offer conditional on a satisfactory inspection, and this is in your very best interest. A home inspector will take a few hours to tour the home with you, and will make sure that electrical and plumbing is up-to-code, as well as alert to you to items that will need to be repaired or replaced down the road, such as the roof or furnace. 

Don't rely on the listing details or the floor plan to be accurate. Take your own measurements, and confirm the layout with your own eyes. 

Finally, your real estate agent should provide you with a list of comparable homes that have sold recently in the neighbourhood. If they don't, make sure you ask for this before you prepare an offer. Before you decide how much to offer the Seller, you must understand what price range similar homes are selling for in the current market. 

6. Not Researching The Neighbourhood

This is especially important when you are buying your first home in a city or neighbourhood you don't currently live in. What is the commute like to work from the home you are interested in? How close are parks, shopping, and highways? What about public transit? Are bus stops a far walk? What is the quality of schools in the area? What is the neighbourhood itself like? Spending a few hours walking and driving around the neighbhourhood will help you decide if you have found not only the home, but the neighbourhood, for you. 

The Nancy Festarini Team has worked with many first-time buyers over the years, and since then these families have grown and become repeat clients. Our buyers and sellers refer us to their friends, family, and colleagues because they have experienced our exceptional service, and they know we put our clients' interests first. We want you to love your first home, and every home you purchase thereafter. 

If you would like to chat about buying your first home, or if you need a bigger house or you are ready to downsize, we are here to help and would love to talk to you. Call Nancy direct at 416-919-8521. She can also be reached via email at [email protected].