Buying Tips For Lake Bonavista Buyers
Ten Secrets for Buying in Lake Bonavista
#10: Keep your money where it is
It’s not wise to make any huge purchases or move your money around three to six months before buying a new home in Lake Bonavista. You don’t want to take any big chances with your credit profile. Lenders need to see that you’re reliable and they want a complete paper trail so that they can get you the best loan possible. If you open new credit cards, amass too much debt or buy a lot of big-ticket items, you’re going to have a hard time getting a loan.
#9: Get pre-approved for your home loan
There’s a big difference between a buyer being pre-qualified and a buyer who has a pre-approved mortgage. Anybody can get pre-qualified for a loan. Getting pre-approved means a lender has looked at all of your financial information and they’ve let you know how much you can afford and how much they will lend you. Being pre-approved will save you a lot of time and energy so you are not running around looking at houses you can't afford. It also gives you the opportunity to shop around for the best deal and the best interest rates. We can put you in touch with excellent mortgage & lending professionals should you need a referral.
#8: Avoid a border dispute
You'd be surprised how much people don’t know where their property begins and ends! You may just want to landscape your new backyard, and then you find out you just cut down your neighbours tree! If you have plans to put in a treehouse for your kids or a new parking garage, knowing the lay of the land is critical. We can take you through the intricacies of a particular properties Real Property Report. The Real Property Report will show you a number of things, including the dimensions and directions of all property boundaries, and the location and description of all relevant improvements situated on the property. Knowing your borders can help you avoid extra legal trouble and legal costs after your close. For piece of mind, know the lines!
#7: Don't try to time the market
Don’t obsess with trying to time the market and figure out when is the best time to buy. Trying to anticipate the Lake Bonavista housing market is impossible. The best time to buy is when you find your perfect house and you can afford it. Real estate is cyclical, it goes up and it goes down and it goes back up again. So, if you try to wait for the perfect time, you’re probably going to miss out.
#6: Bigger isn't always better
Everyone’s drawn to the biggest, most beautiful house on the block. But bigger is usually not better when it comes to houses. There’s an old adage in real estate that says don’t buy the biggest, best house on the block. The largest house only appeals to a very small audience and you never want to limit potential buyers when you go to re-sell. Your home is only going to go up in value as much as the other houses around you. If you pay $800,000 for a home and your neighbours pay $550,000-$600,000, your appreciation is going to be limited. Sometimes it is best to is buy the worst house on the block, because the worst house per square foot always trades for more than the biggest house.
#5: Avoid sleeper costs
The difference between renting and home ownership is the sleeper costs. Most people just focus on their mortgage payment, but they also need to be aware of the other expenses such as property taxes, utilities and homeowner-association dues. New homeowners also need to be prepared to pay for repairs, maintenance and potential property-tax increases. Make sure you budget for sleeper costs so you’ll be covered and won’t risk losing your house.
#4: You're buying a house - not dating it
Buying a house based on emotions is just going to break your heart. If you fall in love with something, you might end up making some pretty bad financial decisions. There’s a big difference between your emotions and your instincts. Going with your instincts means that you recognize that you’re getting a great house for a good value. Going with your emotions is being obsessed with the paint colour or the backyard. It’s an investment, so stay calm and be wise.
#3: Give your house a physical
Would you buy a car without checking under the hood? Of course you wouldn’t. Hire a home inspector. It’ll cost a few hundred dollars but could end up saving you thousands. A home inspector’s sole responsibility is to provide you with information so that you can make a decision as to whether or not to buy. It’s really the only way to get an unbiased third-party opinion. If the inspector does find any issues with the home, you can use it as a bargaining tool for lowering the price of the home. It’s better to spend the money up front on an inspector than to find out later you have to spend a fortune.
#2: The secret science of bidding
Your opening bid should be based on two things: what you can afford (because you don’t want to outbid yourself), and what you really believe the property is worth. Make your opening bid something that’s fair and reasonable and isn’t going to totally offend the seller. A lot of people think they should go lower the first time they make a bid. It all depends on what the market is doing at the time. You need to look at what other homes have sold for. Also, see if the neighbours have plans to put up a new addition or a basketball court or tennis court, something that might detract from the property’s value down the road.
Sellers respect a bid that is an oddball number and are more likely to take it more seriously. A nice round number sounds like every other bid out there. When you get more specific the sellers will think you’ve given the offer careful thought.
#1: Stalk the neighbourhood
Before you buy, get the lay of the land – drop by morning noon and night. Many homebuyers have become completely distraught because they thought they found the perfect Lake Bonavista home, only to find out the street wasn’t for them. Drive by the house at all hours of the day to see what’s happening in that area. Do your regular commute from the house to make sure it is something you can deal with on a daily basis. Find out how far it is to the nearest grocery store and other services. Even if you don’t have kids, research the nearby schools because it can affect the value of your home in a very big way.
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