Buying Toronto real estate is a big decision. We ended up talking to people and getting advices. Find out some of the commonly given real estate advice that you should avoid.
Consider the relationship you have with said adviser. If it is someone you look up to, respect, or trust, their word can carry more weight than the foundation of the home you want to buy soon. Imagine finding your dream home only to have your parents or a mentor tell you “that house won’t be worth a penny in five years” or “if I were you I would consider a neighborhood further away from downtown”. That kind of biased opinion can weigh heavily on your home buying decision, but it might be time to take those treasured opinions from friends and family members with a grain of salt. At the end of the day, this is your home. Whether you want hardwood floors or carpeting throughout is your business. The neighborhood you want to plant your roots down in will be your neighborhood. Letting potentially bad advice affect your own move can be truly hazardous, so here are a few pieces of commonly given advice that should be taken cautiously, or ignored altogether.
“Just get your mortgage where you bank.”
If you are going to shop around for the best deal on a home, why not shop around for the best mortgage rates? Keep in mind that this purchase will have a long-term effect on almost all of your future financial endeavors, so take your time, have a look around, and choose the bank with the most favorable terms. Even though you have your checking and savings accounts stored in a nice big, corporate bank, sometimes the smaller venues will give you a smaller interest rate, making it easier to pay off the home in the long run. There will even be times when this situation is reversed. Don’t let a false sense of convenience cloud your judgment. Banking with one institution doesn’t make them a one-stop shop. Having an existing relationship with the bank doesn’t necessarily mean they will give you the best rates. If you’re concerned about damaging your relationship with your current bank think to yourself... don’t be. A bank that truly cares for its stakeholders will understand if you turn down their offer for a more favorable one and if they don’t, should you really be keeping your money with a bank that doesn’t care about what’s best for you?
“Don’t bother reading the fine print.”
“If you’re going to buy a home, buy it brand new.”
If you’re shopping for a new home, chances are you’ve at least considered having one built from the ground up. With new neighborhoods popping up on every corner in most growing cities, the idea of being a pioneer in a particular subdivision is quite novel. You would have the rare opportunity to watch your surroundings grow and thrive around you just as your family does. And you would be able to watch all of this from that second story balcony included with your custom floor plan that you selected and saw built from the ground up. There are some drawbacks to this, however, as new home builders can sometimes be seen cutting corners, building on impure concrete and many other offenses that would cause long-term damage to your plan to settle in a brand new neighborhood. Hiring untrained help is also a shortcut some builders have taken as well as using cheaper building materials. Not all builders are like this, but you do have to keep your eyes open! Take care and do your research on your builder, if you do decide to have a home built, make sure to have it inspected thoroughly before you sign any binding paperwork.
“You don’t need a realtor.”
Buying a home without a realtor is like trying to save money by cutting your own hair. If you are not licensed and trained, it’s a bad idea. A realtor makes their living by providing you with a home and most reputable realtors take this task very seriously. They are a personal aid and valet in the home buying process and will use their knowledge of the field to get you the best deals and make sure the home is absolutely the best choice for you. Chances are, at the very least, you know someone who knows someone in real estate. These connections are how realtors keep their business going, and repeats or referrals take up a large sum of their clientele. Realtors not only want to get you in a home, they also want to potentially sell you another home in the future or sell a home to someone you know who is looking to buy. Maintaining these relationships is key to repeat business, so you can rest assured knowing that a trusted realtor will go to great lengths to make sure you are well taken care of and find a home worthy of your hard-earned money. With all of these points to consider, you should now be able to tune out some of the noise that comes from people who claim to be offering “friendly” advice. Always remember that the decision you make when buying a home lies strictly with you and your family, and when you decide to seek the counsel and services of a realtor, do the proper research and find a realtor with a positive reputation and an excellent track record. If chosen properly, your realtor will make the home buying process as quick and enjoyable as possible. Happy hunting!