Costly (and often avoidable) mistakes Ontario homebuyers make

On Behalf of Filice Law | January 14, 2022

Between the challenges of finding the right house and figuring out how to pay for it, there is room for making mistakes when buying a home.

Some errors are unforeseeable, and others are minor hiccups that do not significantly impact the buying process. However, other mistakes can jeopardize the purchase and are generally avoidable.

Buying at the wrong time

Choosing when to buy a home is not an exact science, but some situations may signal that you may want to wait to purchase a house.

For instance, housing prices are high right now, and there is a dramatic shortage in the number of houses in Ontario. Sources say that the province has the lowest stock in all of Canada. And a large segment of buyers are developers, which does not help individuals looking to buy.

It is crucial to consider these factors before deciding when to buy because they affect what is available and what you will pay.

Failing to read and understand the paperwork

Buying a home is the most important transaction most people will make, and it comes with a lot of paperwork. Unfortunately, too many people get overwhelmed by this aspect or simply fail to recognize how crucial each document is.

Besides the documentation buyers must provide when purchasing a home, there will be other paperwork to review and understand throughout the process, including:

  • Inspection report
  • Disclosures
  • Purchase agreement
  • Mortgage agreements
  • Amendments or riders
  • Deeds
  • Insurance policies

These items contain crucial information for buyers, so it is wise to take them seriously. That said, they can be highly dense documents with a considerable amount of legal jargon. To ensure you understand what you are signing, you can review them with your lawyer.

Ignoring the red flags

Buyers may come to regret buying a home that didn’t feel right. Maybe the price seemed unusually high, or things about the neighbourhood didn’t sit well. Perhaps there was something suspicious in the inspection report, or the sellers made unusual requests or demands.

Ignoring these and other red flags can be a serious mistake that results in buyers’ remorse.

Listening to your gut – and the professionals helping you navigate this process – can help you make informed decisions and find the home that’s right for you.