The steps to smart buying. Part 1
In my experience buying a house is a nearly irrational, impulsive and the least researched decision that I have seen anyone make. It is the largest investment most will make in a lifetime, and yet hardly any thought or research goes into it by most of the buyers. In fact, you will probably spend more time and effort on buying a smart phone than you will on buying a home.
(NOTE* If you are in the market right now or planning of buying a house or a condo within the next 6 to 12 months, I strongly suggest you call me right now at 647-892-5007. At the very least, read about what makes a great real estate agent, before you make, what could be potentially the largest investment mistake of your life.)
Most common mistakes when buying a home – buying scenario!
(examples are transactions that took place in real estate deals in Mississauga, Milton, Toronto, Oakville, and Burlington in Ontario )
Here is what the typical buyer that buys looks like from my experience as a local real estate agent in GTA. In the most common situation, it will usually be a happy couple that will walk in to one of my open houses. They will be in good mood and joking as they walk in through the door (this is very important – no grumpy buyer ever bought anything). Before we could exchange the greetings, one of the two will generally say, while they are still standing at the half open door, “Wow, this is a beautiful home, oh my, look at this dear…”
Right there and then, I already know that they just bought this home and I will generally keep my mouth shut at this point, (short of answering any questions), so that I will not say something that would make them change their mind.
BELIEVE ME, that house or condo was sold at that door step without the buyers even seeing anything else. Of course, they will go inside and look around but 99% of the time, even if they find something they don’t like, they will make an excuse and convince themselves that in fact that is a good thing and will love it anyway. Take your time searching please! Try searching all properties listed on MLS and also search properties not listed on MLS on myGTAhomefinder search website.
Reason why we make some mistakes when buying a home
Most common mistakes when buying a home, is that the buyers focus looking at the kitchen and then the bathrooms. These two are ALMOST ALWAYS the deciding reasons for buying a home for as high as 95% of buyers. The theory goes, that whoever is responsible for cooking and cleaning in the family will generally have the most say in the buying decision. Since those individuals will spend the majority of time in those areas, as well as maintaining them, homes that have new or clean looking kitchens and bathrooms will generally sell the home. In addition, kitchens are often an area of a home where the entire family gathers, as well as it is a focal point at times when we entertain etc. Bathrooms are a symbol of cleanliness so anyone from young to old will instinctively flock the the new or clean looking ones.
Everything else is second to those two areas of the home. It is why I suggest to all of my client sellers to focus their efforts on fixing or improving those areas. However, it is a common practice by sellers to give cosmetic (minor) improvements to those areas to give a false impression to the buyers that the area is new or clean and thus tricking the buyers into buying.
What makes this problem even worse is that over 95% of time buyers spend on average 15-20 minutes maximum on looking at the home or condo before actually making an offer. Imagine that!!! You are about to commit to a mortgage, of maybe half a million dollars for 25-30 years, that you will slave over to pay, and make sacrifices that will try your will an resolve many times and yet you only spend minutes to evaluate that decision. Talk about you being a gambler. Like gambling?
Even when I do it on behalf of my clients, at the very least I spend 5-6 hours working on the subject property. Imagine how much more you should. Take a little extra time and easily avoid these common mistakes when buying a home.
The only next time they get to see anything is if they have home inspection as a condition and it is very unlikely that they will see anything at that time either since they are preoccupied following the inspector and checking circuits and similar important things. So in fact, it is generally on closing, once they got the keys and a few days following moving in that the buyers begin to realize that they have been taken but it is generally to late at that point.
Granted, sometimes there is not enough time. Sometimes you walked into that perfect home that just came on market minutes ago and will be gone within an hour; buyers are cramming the hallway, agents are typing offers and if you don’t move you will never find one like that. You may say, “Surely, you would not take your sweet time evaluating THAT home for hours or days?” MY ANSWER; Last time I bought on impulse I was 22 years old with no money in my pockets and I bought a ‘once in a life time’ deal of a car for an incredible ‘lowest price ever’ – and spent double that fixing the LEMON I bought. THERE ARE NO GOOD IMPULSE BUYS!
Don’t be fooled!
Back to the point… It is what happens to most of the people. To give you an example, if you painted your room you will very likely have seen every scratch and imperfection on your walls and you will still see the smallest dings even after you have painted it over 3 times.
To anyone else the walls will look spotless.
However, invite a painter who does this every day and he/she will be able to point out all those things.
The same goes for experienced agents. Although you see the glitz and the shine, I can see the polish and the facade that was designed to cover the real situation. Do you want to learn about more common mistakes when buying a home? This is why you should hire a good experienced agent to help you buy. Read my article about past experiences and savings if you are still not sure why hire a good real estate agent? Not sure if it is worth getting an agent? Check here how much you can save by using a real estate agent versus buying without a real estate agent.