Top 5 Costly Mistakes Home Buyers Make (and How to Prevent Them)

  1. Not Using a Buyer’s Agent  – when you buy a place you must be represented by your own realtor. So don’t go to the listing agent and think you’re going to get a better deal and just go find a real estate agent. You won’t have to pay money out of your pocket for it, and they’re going to represent your best interests.
  2. Not getting a home inspection – Don’t think that this $300 is wasted, it’s actually very important to have an expert come look at the house or building and tell you whether it’s worth its value or not.
  3. Putting down a small down payment – People think they should only put down a small downpayment. The bigger the downpayment the smaller your monthly mortage payments are going to be. So it’s better to put down a bigger downpayment and then having smaller payments in the future. And after all it’s an investment.
  4. Forget taxes and other fees – sometimes buyers think they pay the selling price and they’re done. You’re going to have to pay taxes and fees that you might forget about such as property transfer tax, lawyers fees etc. Just ask your realtor and don’t forget to include these fees in the final price.
  5. Don’t buy at the top of the budget – When you go to see your bank or your mortgage broker they will pre-approve you and give you a range. I know it can be tempting to buy at the highest price, but you shouldn’t. Save money for rainy days, keep some money aside. I recommend keeping your monthly payment the same as what you’re renting for right now.