Planning to buy a home for the first time? Worried about making critical mistakes that could cost you getting the home you want? In this episode, we discuss top mistakes to avoid when buying a home (such as buying solely on price or limiting the type of home you want). We also explore if it's easier to buy a home with or without a realtor.
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Hi everyone, I'm Karl, and welcome to another Homebuyer's School video, a channel where you get the latest strategies, tactics, and tips from home buying experts. And remember, if this is your first time on this channel and you want to get the latest strategies from the experts, hit the subscription button below, hit the little notification bell so you don't miss anything.
Today I'm joined [00:00:30] by Jessica McNabb, Area Manager of Brookfield Residential. And today we're talking about:
What are some mistakes to avoid when buying a house in 2019?
Yeah, that's a great question, Karl.
Mistake: Buying solely on price
So, a big mistake that people make when buying a home is they will buy strictly based off price.
So, they will head out looking for months, and they'll say, "How much is this home? How much is this home?"
And then they'll end up in their home, and it's not exactly everything they would have wanted, just because they brought off the right price.
Mistake: Not looking at a home's energy efficiency
And the second thing would be when you're looking at [00:01:00] buying a resale home for example, it doesn't fall under any kind of warranty program anymore, so it might have not as great energy efficiency, it might not have an HRV system, it might not have triple pained windows, it might just have a single pain.
Homes might not be as air tight.
And if you want to know more about questions you should ask when buying your first home, make sure to watch the video above and in the description below.
When you are looking to buy a home, is it easier to look by yourself, or with a real estate agent?
[00:01:30] It doesn't hurt to have a realtor when you're on your home buying journey, if you're looking at resale and new homes.
You can absolutely work with a realtor specific to resell. They're the ones that do all the leg work for you in looking at the different listing times, or the different showing times I should say.
If you're looking at buying new, you can go show home to show home, and usually the area manager is there, sales reps will be able to help you out.
Is one of the mistakes not knowing certain program? So, [00:02:00] for example if you're a first time home buyer, are there first time home buyer programs that some people overlook?
Mm-hmm (affirmative), yeah, definitely.
So, the first time home buyer program would be pulling your down payment out of your IRS piece, because you don't have to pay tax.
So, that's one of the key components.
So, the best way to feel secure before your home buying journey starts is to talk to your bank or your mortgage specialist.
And then to come up with your budget and your criteria.
And then you can choose whether or not you want to work with a realtor, or you want to go solo looking at show homes.
Mistake: Not maintaining your finances
And I [00:02:30] think one of the big ones are what are some mistakes you've seen in terms of mortgages pre approvals? What are some of the things that you've seen at sales centers?
So, one of the biggest mistakes that people could make is once they've already decided to purchase a home with us, they've written their contracting agreement, and we have a building timeline in place.
So, the mortgage broker will give them their pre-approval knowing that six months from now is when they're actually going to take possession.
So, the biggest mistake is if somebody goes and buys a new car, [00:03:00] or applies for a new credit card.
So, once you've purchased a home, it's important to remember to maintain your credit, to maintain your budgets, and not to change your finances in any way, because that could affect your closing on your actual home.
Karl Yeh: Okay. Another thing that I wanted to ask is how about ...
Do you see any mistakes in terms of looking at different types of homes?
So, like you go to one home, you really like it. And you go to another home and you really like that one too. Are there things that you want to avoid when trying to compare homes?
Yep. [00:03:30] So, it's really important to come up with a criteria with your family on what's important to you, because you may be thinking I don't want a duplex home, I'd only want a single family home.
But keeping in mind a duplex might have a bigger backyard, because a single family home would have your garage in the back, which would take up all your backyard.
So, if you bought a home strictly based on want it single family, and you have that budget, where you could have bought a duplex and now you moved in and you had a big dog, or you have kids and there's not a big backyard.
So, it's important to look at the bigger picture, not just the style of [00:04:00] home for example.
I think we also, when you touched at just looking purely on price, I think somethings people would miss on is the community you live in, how close it is to work, and all those things that go into the location of where you're going to live too, right?
So, for Brookfield for example there's a lot of our communities that have resident association fees, and the first thought is people want to keep their budgets low, and they don't want these fees.
But there could be really great amenities in that community, that's only $300 once a year, but you get [00:04:30] access to a skating rink, or the lake in Lake Summerside, or the community gardens in Chapelle.
So, strictly based on price sometimes is not the best decision, because you might be missing out on a small cost for a bigger gain for your lifestyle.
And remember, if you want to know more about choosing the right location to live in, watch our video above, and in the description below.
So, Jessica, do you have anything else to add in terms of mistakes people have when buying a home?
So, in terms of the negotiating process, a [00:05:00] lot of people want to submit an offer, and they will bring us a comparable from a different community.
And let's say that community has that same home, but it's cheaper in price, and they'll bring that to us as the comparable.
The thing to keep in mind is that every community has different amenities, has different things to offer. So, though one price might be higher, it doesn't mean that you're losing out, or getting a bad deal.
Generally all builders are apples to apples in terms of the price for the home, it's just the lot price that going to be different.
So, the question of the day I have for you is:
What are some of the mistakes you made when buying your first home?
Let us know in the comment section below.
And remember, if you enjoyed this video, or found it helpful, hit the thumbs up, remember to comment, and remember to subscribe. Thank you and we'll catch you next time.
Let us know if you have additional home buying questions that we can answer by submitting them in the comments section below.
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About Jessica McNabb:
University of Alberta: Bachelor of Science in Registered Nursing 2011 McConnell Place North Alzheimers Care Centre 3 Years - Client Care Leader Brookfield Residential 6 Years - Area Sales Manager Sold over 200 Homes
While a career in Nursing was extremely fulfilling, I also wanted to explore a career in home sales. After 6 years of being in the New Home Sales Industry, I still feel the same sense of fulfillment through taking clients from start to finish building their home.