First Time Buyers

by Darrin DeRoches May 2 - 8, 2013

I have written about first time buyers before but every time I work with a new client that has never bought before, I learn something new. First time buyers may be just as informed about real estate as other buyers but unique questions always come up and the interesting part is that the questions usually come from friends and family. The first time buyer has to stop listening to everyone else and trust their own instincts. The dumbest questions are always from the people giving them advice and never from the buyer themselves.     This is why I usually put a first time buyer with a Mortgage Broker so that they can ask all the questions and get the banks working for them. I have seen too many banks take advantage of their naivete and sign high rate mortgages with bad terms because the buyer has “blind faith” with their bank. They usually say “I have been banking with them since I was a kid” So what! This is the exact reason why they will hit you with a high rate and finally make money on you since they have given you a free account for years. Think about it! Another problem that happens with a first time buyer is moving too slowly. They listen to their friends who say you should look at “twenty to thirty homes” before making a decision. Wrong! The right home, location and price are the deciding factor not the number of homes you look at. You can miss out the best deal waiting to find the “perfect home”. Most are afraid if they move fast they will be ridiculed by their family. If your family’s last name is Trump, then maybe they can give you advice, otherwise listen to your broker.     That brings me to the most important decision – picking the right broker. First things first – you are probably buying the most expensive thing in your life and picking the right broker can make or break your financial future. Just because your cousin Johnny just got his real estate license does not mean he is the right person for the job. How do you pick the right broker? Ask yourself these questions: Has the broker been successful in buying real estate for themselves? Are they full-time  real estate brokers? Are they approachable and take time to answer questions? Lastly, have they been successful in winning against multiple offers? Anyone can write up an offer but it takes the right broker to write up the “winning offer”. Even if you are not in competition, the way you write an offer can make a deal a steal! Time after time I have clients excited about buying their home and getting it for a price they cannot believe.     Listen to your gut, move quickly when it is the right home and most importantly pick the right broker. Business is business and family is there to support you, but when buying your first home – go with an experienced professional! V         Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at sold@uniquerealty.ca.