Most homeowners admit to making at least one mistake when they purchased their home, according to the 20th Annual RBC Home Ownership Poll. Listed below are the top mistakes made by first-time home buyers:
The Property Needed Work
Even those buyers with home inspections encountered issues after they moved in.
Not Having a Bigger Down Payment
A small down payment meant that many buyers found themselves overwhelmed by the costs of keeping a home.
Not Getting a Home Inspection
By skipping this step, some buyers found themselves faced with astronomical repair costs. Particularly those who had purchased older homes with ancient plumbing and wiring.
Not Knowing the Closing Costs
Some ill-informed buyers didn’t account for additional costs such as the land transfer fees, the title fee, lawyer’s charges etc…
Not Getting Pre-approved for a Mortgage
By not obtaining a pre-approval, many home buyers fell for homes that were out of their price range.
Falling in Love with the Wrong House
Buyers found they ignored obvious structural or electrical problems because the home had 10’ ceilings or a great stone fireplace. Beware of buyer’s remorse.
Not Checking the Market Value of the Neighbourhood
Some purchasers paid too much for homes that were renovated above and beyond neighbouring properties. This may price them out of the market when it comes time to sell.
Focusing on Interest Rates
New buyers felt compelled to buy because mortgage rates were low. Experts recommend buyers focus on the mortgage product that works for them instead of just trying to score a super-low rate.