Any real estate transaction can be equal parts exciting and intimidating — largely due to the amount of time, energy, thought, and money that goes into one. With everything that has to be on your mind at this time, it can be easy to miss or downplay some important details and make crucial real estate mistakes.
Unfortunately, these mistakes can result in significant miscommunications and/or misrepresentations for all involved. This not only has the potential to slow down the purchase or sale of a property, it could also lead to a deal falling apart entirely. From there, the consequences vary, but undoubtedly certain issues can make the closing of a real estate transaction far more difficult than it needs to be.
With that in mind, let’s take a look at six common real estate mistakes buyers and sellers make and how to avoid them.
Not Hiring the Best Professionals
When buying a home in Ontario, or selling a home in Ontario, you are legally required to hire a real estate lawyer for your transaction. Real estate lawyers play an enormous role in the purchase or sale of a property, as they are responsible for such important tasks as reviewing contracts; performing title searches; managing the financials of a transaction; registering ownership; and much more.
Beyond a real estate lawyer, you should also hire an experienced and well-respected realtor that understands the market, your needs, and can ensure that your agreement includes the proper rights and protections. Next, bringing aboard a reputable mortgage broker will help you secure the financing you need to complete your transaction.
Last but not least, a home inspector could be brought in to take a look at the property you are hoping to purchase. The home inspector will be able to evaluate the home for any issues (i.e., leaky roof, fire hazards, structural damage, etc.) and educate you about the property as a whole.
Failing to hire well-reviewed and recommended individuals in these positions could complicate any real estate transaction. Contact FDH Lawyers to start the process.
Lack of Communication with Those You Hire
Once you have decided upon who your real estate lawyer, realtor, mortgage broker, and home inspector are, you need to ensure that you are communicating with these professionals in a timely manner.
While there are elements of your transaction each of these professionals can handle with little to no guidance, there will be instances when your attention and assistance will be required. Throughout your transaction, promptly respond to any calls or emails you receive from those you are working with. This will help them do their jobs to the best of their ability and lead to a smoother purchase or sale.
Failing to do this could be considered a sizable real estate mistake, as there are specific elements of each transaction that cannot be completed if you, as a client, are unreachable.
Not Understanding the Contract
There is a lot of paperwork attached to any real estate transaction in Ontario. While this can be intimidating at first, it is quite important to understand any and all contracts placed in front of you.
Since real estate agreements are legally binding, you must grasp every condition, clause, timeline, and financial element featured in any contract you are required to sign. Not wholly understanding the contract you are signing could prove to be a very costly real estate mistake.
Fortunately, though, the real estate lawyers at FDH Lawyers and your realtor can help you get through all of it. Real estate lawyers and realtors have a deep understanding of purchase and sale contracts, as well as the ability to explain them in plain language.
Dodging Due Diligence
Considering the size and scope of real estate transactions in Ontario, buyers and sellers alike should prioritize due diligence as part of their buying or selling process.
For buyers, due diligence can include have FDH Lawyers review documents associated with the property they’re looking to acquire (i.e., status certificates and condo rules, etc.), as well as getting a home inspector to visit the property and have them prepare a detailed report about their findings. From here, if any red flags emerge, conferring with your real estate lawyer and realtor is a good idea. This type of due diligence could save you from many future headaches.
From a seller’s perspective, it’s important to be upfront and honest about the property being sold. This can include (but is not limited to), informing all parties involved that all appliances are in good working order, only for it to later be discovered that some of them are non-operational. When this happens, it can create an acrimonious relationship with the buyers and jeopardize the deal at hand.
Not Considering Total Transaction Costs
One real estate mistake made often by buyers and sellers is grasping the total cost of a real estate transaction.
In addition to the on-paper purchase price of a property, buyers are also responsible for legal fees, the land transfer tax, title insurance, adjustments for prepaid property taxes, rent, utilities, etc. There’s also the matter of hiring movers or the cost of renting a truck and purchasing your own moving supplies.
For sellers, they, too, have to incur the cost of moving services, but there’s also the possibility of hiring a home stage to make the property look its best for the real estate listing and subsequent open houses. On top of that, realtor commissions need to be accounted for, as do mortgage or secured line-of-credit payouts, and legal fees and disbursements.
Reach out to FDH Lawyers for a quote for your next real estate transaction.
Racing to the Finish Line
As exciting as it can be to buy or sell a property, going about either process in a methodical manner is a smart decision. Like anything in life, rushing through a real estate transaction can result in mistakes, misunderstandings, or costly errors that could hurt you monetarily.
Sellers can smartly take their time readying the property for sale, be it through renovations or a less-invasive staging process. What’s more, once the property goes to market, taking your time and analyzing more than one offer could lead to a sale price you are happy to accept. The first offer will not necessarily be the best offer.
Meanwhile, buyers should take a minute to develop a firm grasp of the real estate market in the region they are looking to make a purchase. Researching the neighbourhood and understanding if it has the amenities that meet your needs (i.e., schools, medical clinics, grocery and big box stores, etc.) is also a helpful step to take in advance. Rushing a purchase only to realize the neighbourhood does not offer what you’re looking for can be a very expensive (yet preventable) real estate mistake.
Contact FDH Lawyers for Real Estate Services
If you are planning to buy a home, understanding your legal obligations and financial responsibilities is crucial. At FDH Lawyers, we provide personalized service and detailed guidance through every step of your property transaction.
We serve clients across all of Ontario, including Burlington, Hamilton, Oakville, Milton, Mississauga, Brampton, Grimsby, Stoney Creek, St. Catharines, Ancaster, Dundas, Waterdown, Niagara Region, and the Greater Toronto Area. Our experienced team ensures that your transaction is handled with care, precision, and efficiency.
Learn more about us or explore our residential real estate and commercial real estate services. For experienced legal assistance with calculating closing costs and ensuring a smooth transaction, contact us today.
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