Hiring a Homebuyer's agent takes stress out of a purchase

This article was in the London Free Press this morning.  Thought it was worth sharing!

Buying a home will likely be the biggest investment of your life, so you want to get it right.

Here are some common pitfalls you should avoid.

• Thinking you can't afford it. We've all heard the saying that "buying a home is a good investment," yet people often think they can't afford to enter this market. But if you consider the fact that although the prices of homes fluctuate with the economy, the long-term trend is normally a consistent increase. Just like investing in the stock market, a smart investor will look for investments that increase their equity over time. This means that every month when you make a mortgage payment, you're increasing your equity and this is one of the reasons you can't afford not to buy. The key is to do your research and be prepared. People also have so much more flexibility in financing today than was available even a few years ago. Whether you're working with your banker or a mortgage broker, you should seek professional advice when it comes to getting approved and obtaining financing for a mortgage.
• Get pre-approved for your mortgage before you place an offer on a home. This will help you avoid disappointment should you find the perfect home and then learn you aren't approved for financing.
• Not hiring a buyer's agent to represent you.  In addition to being the smartest financial decision, buying a home is often the largest single investment you will make and a bad choice can end up costing you thousands of dollars.  Buying property is a complex and stressful task and real estate transactions have become increasingly complicated; therefore, to make the experience less stressful you should work with a "buyer's agent", someone who has a solid understanding of the rules and who is also on your side.  New technology, laws, procedures and competition from other agents require buyer agents to perform at an ever-increasing level of professionalism.  Buyer's agents have a fiduciary duty to you. That means they are loyal to only you and are obligated to look out for your best interests. Best of all, in most cases, the buyer's agent is paid out of the seller's commission, even though he/she works for you. Buying a home without an agent is; to say the least, risky business!
• Not having a home inspection included in the offer to purchase.  Potential home buyers often forgo the home inspection condition in the offer, especially in a bidding war with multiple offers. The buyer is forced to forgo a home inspection because they're afraid their offer will be rejected because they have added a condition that a home inspection be performed. If you feel you must do this, you're taking the risk of not knowing the condition of the home, and this could lead to costly repairs that may have been discovered during a professional home inspection.  By purchasing a home without a home inspection, you have little or no recourse if something major is wrong with home; it's like buying a car without a safety check.If you feel you must do this, then at the very least you should hire a qualified home inspector after your offer has been accepted so you're made aware of any serious issues with the home that need immediate attention.

This article was in the London Free Press Homes Section today. Written by Rob Parker.
Read the full article: http://www.lfpress.com/homes/2012/02/23/19414971.html

Rob Parker is a registered home inspector with the Ontario Association of Home Inspectors and certified master inspector with the National Association of Certified Home Inspectors who does home inspections in the London area.  Call him at ThamesSpec Home Inspection Service at 519-857-7101, thamespec@rogers.com or visit www.thamespec-inspections.com.