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What are common mistakes first time home buyers make? (and how to avoid them)

“Always pick your yard based on your Summer lifetstyle.”

~ KARL

April 12, 2018 - Karl Yeh

Are you planning to buy your first home? Want to avoid mistakes other first time home buyers regularly make? In this episode, we discuss the top mistakes that are made when purchasing a home for the first time and what you can do to avoid them. 

 

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Transcription:

Karl Yeh:

Hi, everyone. Welcome to another edition of Homebuyer's School.

Today I'm joined by Bridgette Beaulieu, Area Manager with Brookfield Residential.

Today the topic we're going to discuss is:

Mistakes that first time home buyer's make

Bridgette, in your experience what are some mistakes that first time home buyer's make?

Bridgette Beaulieu:           

From my experience, some mistakes I have seen, is first time home buyer's buying on price.

Huge mistake. I would say that's probably number one from my experience I've seen.

The other ones would be buying on impulseJust getting kind of excited.

Making the decision that perhaps isn't 100% the right decision.

The other one I would say is getting kind of blinded by your wants versus your needs.

Kind of de-qualifying yourself almost from buying a house.

 

1. Mistakes concerning the price of a home

Karl Yeh:             

Okay. Let's talk about price first then. How would that be a mistake? I see a price that fits within my budget. I'm like, "I'll buy that house." Why would that be a mistake?

Bridgette Beaulieu          

Buying on price versus value can be a real issue.

You can see a price point. It's well within your budgetIt's what you absolutely want.

  • But is the house really worth that?
  • Is the resale of this house down the line, say five years from now?
  • Are you going to get that back? Why is it that price?

Versus there can be a home, very attractive.

Perhaps it costs a little bit more but the value is there.

You get more with that house.

The location is best, aspects about the house are good.

Just different things like that. Because the best price today isn't the best value tomorrow.

Karl Yeh:              Right. We did talk about first time home buyer tips, which you can see from the card above.

But I think it connects perfectly to re-saleability, right?

To make sure that the home that you're buying, when you talk about value tomorrow, that it provides you value back.

Bridgette Beaulieu:            Exactly.

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2. Impulse and being over-excited 

Karl Yeh:              Awesome. The next mistake that you mention is impulse. What do you mean?

Bridgette Beaulieu:           

Getting really excited and buying that house without really thinking it through.

You don't want to have that buyers remorse. You want this to be the right home, the right fit for yourself. I'm not saying wait.

But just think about it before you buy. At least take one day just to think about it.

Karl Yeh:             

It's no like ... let's say I walk into this show home. I'm like, "I really love this." I just put down a down payment and deposit and away I go.

I didn't even really think about, does it fit my lifestyle? Am I in the right community? Right? Those kind of things that I didn't really think about.

Bridgette Beaulieu:           

Well, if you walk in and absolutely fall in love with it. Feel free to put down a deposit.

But just before you actually commit, think about that.

You can still write the offer. You can still do all of that immediately. It still gives you sometime to think about it.

Just that condition, removal time frame. You can take that time to review, to think.

It's just make sure that you have had that time and that you have had a thoughtful review. That you do feel good about what you've done.

If you have any questions, anything like that, bring them to your sales professional.

 

3. Wants vs. needs

Karl Yeh:              Perfect. Perfect. Well, the third one that we talked about was wants versus needs.

Bridgette Beaulieu:             Yes.

Karl Yeh:              What do you mean?

Bridgette Beaulieu:             

Well, everybody has their needs.

Everybody has certain requirements a home must have to suit their life.

Then there's wants on top of that. I need a garage, I want a three car garage.

Karl Yeh:              That's right.

Bridgette Beaulieu:             

It's those things. If your wants are going to price you out of what you can afford, don't obsess on them.

Sometimes people can really, really focus on that want.

In their mind it becomes a need. But then that can stop them from actually buying a home.

If you focus on your needs, buy the right home for yourself.

Then again down the road you can resell it and then get the wants.

Karl Yeh:             

Perfect. That sounds good. Well, thank you very much Bridgette. Thank you very much everyone for joining us and we'll catch you next time.

 

Recommended watch:

Some of our other videos that you may be interested in watching related to buying your first home. 

What are proven tips for first time home buyers in Canada?

How to find the right house for me?

What's the difference between a new house and a show home?

How to choose the location of your home?

 

Your turn:

Let us know if you have additional home buying questions that we can answer by submitting them in the comments section below. 

Homebuyer's School publishes new content weekly so subscribe or check back regularly for the latest information, strategies and tips from homebuying experts. 

About Bridgette Beaulieu:

Bridgette graduated from Simon Fraser University with a Bachelor's of Arts, majoring in Anthropology. She has been working with Brookfield Residential with a focus on customer care for the past 12 years. As an Area Manager, she has sold over 300 homes. 

"People fascinate me; I love working and interacting with them. It brings me a great deal of joy to know I help improve people’s lives."

 

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