Are you thinking of buying a home in Edmonton but you’re unsure of what the process includes? There are definitely some major pitfalls that a lot of buyers fall into, and in this video, I’m going to let you in on three of the biggest ones to avoid.
Stick around to the end to hear the biggest mistake that Home Buyers make in the Edmonton area so that you won’t fall into the trap of making the same mistakes!
Home Buyer Mistake # 3 - Underestimating Closing Costs
And then once the Offer is Accepted, you’ll have around around 10 business days or so, where you are doing your due diligence to make sure you want to purchase the property, otherwise know as being pending. During this time there are some costs:
- A cash deposit that is submitted following making an offer
- Home inspection fees which could include things for older homes like a sewer scope to make sure no tree roots are growing into the lines, a WETT inspection which is what your insurance company will require for woodburning fireplaces to make sure they’re safe and functional and for rural properties septic and well inspections also could also apply
- Some other possible costs could be a condo document review if you’re purchasing a condo
- Real Estate Lawyer fees and disbursements
Home Buyer Mistake # 2 – Underestimating the pre-approval process
To put an offer on a home the seller is going to want to know that you have a full pre-approval in place, and this can take some time to put together. The lender is going to want documents like T4’s and NOA’s which might take some time to for you to gather and submit.
Buyers that decide to start shopping for a home without a pre-approval are putting the cart before the horse and are essentially blocking themselves from having the opportunity to submit an offer if they happen to find their dream home early in the shopping process. Why? Well, if the sellers agent is diligent they’ll ask whether the buyer is pre-approved or not. What if another prepared buyer came along and snatched up your dream home while you’re getting your ducks in a row? That would not be good!
Let me ask you a question – would you tie yourself up in a contract if you had no clue whether the buyer was going to be good for it or not?
Home Buyer Mistake #3 - Underestimating the home's Value
We are currently in a more of a Buyers market in the Edmonton area, but that doesn’t mean it’s a free for all of deals. Lowball offers simply don’t land well. At best you could end up haggling back and forth until you can agree on a final price, which will most likely end up being fairly close to the list price. At worst, you could end up paying more than you originally would have if you’d submitted a reasonable offer, because you ticked the seller off in the process of trying to get a good deal, and they’re less willing to negotiate. For the most part, homes will sell for their current market value, which is an ever-changing target, so it’s important to make an offer based on the current market value with recent sold properties to inform your decision.
If you’re in the market to buy a new home in the Edmonton area, check out some of my other videos on Buying a Home!