Did you learn about buying a home in school? Unless you’re a licensed Realtor, you probably didn’t.
Buying a home is an exciting time, but it can also be stressful. Without the right knowledge, you might not make the decision that’s best for you and your family which can be very costly.
At Insightt we know that Knowledge is Power and having a plan in place is the best way to make the most informed decision. According to the Real Estate Council of Ontario (RECO) recent survey on consumer vulnerability, they highlighted common misconceptions consumers frequently have in the home buying process which we have outlined below along with helpful tips to avoiding these common errors.
32% of first time home buyers did not feel prepared or knowledgeable about buying.
When you’re buying a home it’s most likely the single biggest purchase of your lifetime. Being prepared and having knowledge are key in making the decision that’s right for you. When you make the right decision on your first home, it can set you on the right path to financial success for the years to come. However, if you make the wrong choice, it can set you back years.
Wouldn’t you rather find yourself in the former situation and not the latter? I know I would.
43% said there were sections of the contract they didn’t fully understand.
It’s important to recognize that the purchase and sale agreement is a legal document. You can’t just walk away from it because you got cold feet and changed your mind. If you do that, there may be consequences. Not only could you lose your deposit, you could also find yourself on the other side of a lawsuit. Don’t let this happen to you.
By having the knowledge you need, you can sign the purchase and sale agreement with confidence knowing exactly what you’re getting yourself into.
58% didn’t know the conditions for multiple representation
Do you know what multiple representation is? Multiple representation is when the home buyer and seller are clients of the same real estate brokerage. This is sometimes called dual agency. Multiple representation also happens if two buyers are interested in the same property and are using realtors from the same brokerage.
Sometimes multiple presentation can be fine, but it’s hard to make an educated decision about it unless you understand what it is in the first place.
55% incorrectly believe deposits are returned immediately after a conditional offer does not proceed
Again, unfortunately they don’t teach us this stuff in school. Although you may be required to make your deposit within 24 hours, it can take a couple weeks or longer to get your deposit back. This is important knowledge to have on hand if you plan to make an offer on another property and need your deposit money back in order to do so.
36% think there is a trial period after signing a contract
While there may be a cooling offer period with purchases of pre-construction homes, that’s not usually the case with resale homes.
33% are unsure about the existence of a trial period
You’re buying a home, not sampling perfume at the mall. You don’t get to “try out” the home. You can include conditions like condition of financing and home inspection to protect yourself, but that’s only if your real estate professional explains these to you and you decide to include them with your offer.
As you can see, having a Real Estate Plan and working with the right real estate professional, is the first step to making a great home buying decision.
For additional resources and helpful insights to help you make an informed decision, please browse our website. We believe in knowledge not pressure!