Buying a home for the first time can be a daunting task. There are several factors to consider. This is no small feat for a first time homebuyer. There are many things to consider.
1) Not being prepared to buy
The first mistake first time homebuyers make is not being prepared to buy a home.
This may seem obvious however, there is quite a bit of prep work to be done before offering on a home. You want to make sure you know what kind of home you want. Moreover you need to figure out your wants, needs and non-negotiables of your potential home. In addition, you want to be pre-approved for a mortgage and have your financial situation in check.
The last thing you want is to find your dream home, only to find out you are not ready to put an offer in. With the fast pace of the real estate market, your dream home may be gone by the time you are ready to offer.
Make sure you get all the prep work done before the real house hunting begins! From location to pricing, there are many factors to consider when buying a home for the first time. Be prepared and determine your personal situation and home criteria before shopping around.
2) Trying to time the market
The goal with real estate is to always buy low, sell high.
Timing the market can happen, but is not always realistic (especially if you have to buy). As with any type of investment, real estate is the same when it comes to trying to time the market. No one can do this with consistency and accuracy all of the time.
If you are interested in evaluating the real estate market then understanding the Sales to Active Listings Ratio is important. This helps determine whether you are in a Buyer’s Market, Seller’s Market or a Balanced Market. Buyers have an advantage in a Buyer’s Market and vice versa. Saskatoon has been in a sellers market for some time.
One way to ensure you are making the best decision is to work with an experienced realtor. They understand the local market and know what to look out for no matter what kind of a market you are in. Skilled realtors are also able to negotiate fair prices for you and can advise on unique situations you find yourself in.
3) Thinking every home on the market is a good purchase in a buyer’s market
Another mistake first time buyers make is they assume every home is a good purchase in a buyer’s market. This is not true! Buyers have an advantage as there are many homes on the market for their choosing. However, that does not mean each home is listed at fair market value. Also, a lot of homes on the market means there are going to be some lemons! Choose wisely!
Working with an experienced realtor will allow you to look at market comparables to determine the fair price of a home. Furthermore, they look at the specifics of the neighbourhood and the home itself. Assessing all factors is necessary to put in a fair offer that will be accepted by the sellers.
The type of market you are in does make a difference in certain ways. The level of competition you face against other buyers on the market varies. However, what does not change is the fact that you must assess your personal situation and try to make the best purchase you possibly can given the current market and circumstances.
First time buyers
Finding a good realtor to work with will make all the difference in purchasing your first home. You want someone who will be on your side all the way through. Experienced realtors help guide you through the real estate journey, which can be an emotional one for many.
Buying a home is one of the biggest purchases you make in your lifetime. It’s an exciting and challenging time.
Once you have all the right people and factors sorted out, buying your first home is an exciting process!
As always, if you need help buying or selling a home do not hesitate to contact Gregg Bamford or Ryan Bamford.
