Keith Woolhouse
Sun
Buying a home should be among the happiest moments in life, but unexpected problems can transform it into something more like a nightmare.
The fun of searching for and finding the home is quickly overtaken by unwelcome surprises that may linger long after moving day. They crop up all the time, and in every price bracket, but with a little careful planning they can be avoided.
“One of the biggest mistakes is made during the search for a home,” says Angelo Toscano of Re/Max Metro City Realty Ltd., in Ottawa, who has been in the business 15 years.
“Most people don’t consider the likelihood that the day will come when they’ll want to sell the home, so they don’t search in regards to location and resale. Instead, they end up buying in a neighbourhood that has little or no resale value. That’s one of the biggest mistakes that most people make.”
If that sounds contradictory — because every property on the market eventually gets sold — it’s not, says Toscano.
“In Ottawa, which has a lot of corporate transfers, parliamentary comings and goings and military deployments, the average family stays in a home for only three years. That may not be the case in other cities, but the reality is that wherever you live, you have to look into the future and decide how long you’re likely to stay in the neighbourhood where you’re looking to buy.
“It gets back to resale value. You don’t want to be in a place for just a few years and find out when it comes time to sell that it hasn’t gone up that much in price, while property in other neighbourhoods has increased. It’s important that the equity in your house keeps pace with rising real estate prices and you’ll be able to sell at a good profit.”
It’s an important consideration yet “about 99 per cent of buyers don’t do that,” says Toscano. When buying a property, think as an investor. If you don’t, it can be a very costly, he says.
Take to heart the real estate agent’s mantra: Location, location, location. Given the choice of a property that is overlooked by neighbouring homes or one that is secluded but backs onto a busy street, for instance, most will choose the latter, says Toscano.
The choice could cost you dearly.
“They need to be aware that the resale on property which backs onto the busy street will not fetch as much,” says Toscano. “A lot of people have the misconception that because there are no neighbours at the back, it should be more expensive. That’s not the case.”
The reluctance of buyers to have a home inspection is another error high on the list. “Many buyers genuinely resent paying for a home inspection when they’re buying a $250,000 property,” says Toscano.
“My answer to that is, ‘You’re buying a quarter-of-a-million-dollar property, why don’t you put a clause in the offer that will protect you against damaging information an inspection would reveal.’ An inspection costs around $450 to $500. That’s not much to pay to discover that there’s a crack in the furnace heat-exchanger that will cost $2,800 to repair.”
© The Vancouver Sun 2007
