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Scott McGillivray
10 Common Mistakes Made by First-Time Homebuyers, According to Scott McGillivray
March 14, 2019
Scott McGillivray has helped a lot of people go through the process of buying and renovating their first home – but he's also seen people make the same mistakes over and over again. Do any of these sound familiar?
Scott McGillivray is a real estate expert and host of HGTV Canada's Income Property and Moving the McGillivrays.
Scott McGillivray is a real estate expert and host of HGTV Canada's Income Property and Moving the McGillivrays.
Scott McGillivray
10 Common Mistakes Made by First-Time Homebuyers, According to Scott McGillivray
March 14, 2019
Scott McGillivray has helped a lot of people go through the process of buying and renovating their first home – but he's also seen people make the same mistakes over and over again. Do any of these sound familiar?
Scott McGillivray is a real estate expert and host of HGTV Canada's Income Property and Moving the McGillivrays.
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1. Not Getting Pre-Approved First
1/101. Not Getting Pre-Approved First
1/10Photo Credit: Getty Images/Hero Images Source: www.gettyimages.ca
I can’t say this enough: <em>Always</em> get pre-approved for financing before you even start shopping for a house. One big reason is because it’s highly likely you’ll fall in love with something you can’t afford and then have your heart broken. Also, when you put in an offer for a house it’s more likely for it to be accepted if your finances are already in order. Even if your offer is a little lower than someone else's bid, your guaranteed financing may make you a better candidate. <br><br> Related: <a href="https://www.hgtv.ca/real-estate/photos/15-money-saving-tips-for-first-time-homebuyers-from-scott-mcgillivray-1909400/" rel="noopener" target="_blank">15 Money-Saving Tips for First-Time Homebuyers From Scott McGillivray</a>Scott McGillivray10 Common Mistakes Made by First-Time Homebuyers, According to Scott McGillivray1. Not Getting Pre-Approved First
PHOTO 1 of 10READ LESS -I can’t say this enough: <em>Always</em> get pre-approved for financing before you even start shopping for a house. One big reason is because it’s highly likely you’ll fall in love with something you can’t afford and then have your heart broken. Also, when you put in an offer for a house it’s more likely for it to be accepted if your finances are already in order. Even if your offer is a little lower than someone else's bid, your guaranteed financing may make you a better candidate. <br><br> Related: <a href="https://www.hgtv.ca/real-estate/photos/15-money-saving-tips-for-first-time-homebuyers-from-scott-mcgillivray-1909400/" rel="noopener" target="_blank">15 Money-Saving Tips for First-Time Homebuyers From Scott McGillivray</a>Photo Credit: Getty Images/Hero Images Source: www.gettyimages.ca
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2. Getting Too Emotionally Invested
2/102. Getting Too Emotionally Invested
2/10Photo Credit: McGillivray Entertainment
Buying your first home is a big deal, and it’s perfectly normal to feel emotional about it. However, you should never let your emotions get in the way of smart decision-making. Emotions can cause you to make mistakes, and when it comes to buying a property those mistakes can become costly. Think with your head, not with your heart. <br><br> Related: <a href="https://www.hgtv.ca/tips-and-tricks/photos/essential-things-every-homeowner-needs-to-know-1924386/" rel="noopener" target="_blank">10 Essential Things Every Homeowner Needs to Know</a>Scott McGillivray10 Common Mistakes Made by First-Time Homebuyers, According to Scott McGillivray2. Getting Too Emotionally Invested
PHOTO 2 of 10READ LESS -Buying your first home is a big deal, and it’s perfectly normal to feel emotional about it. However, you should never let your emotions get in the way of smart decision-making. Emotions can cause you to make mistakes, and when it comes to buying a property those mistakes can become costly. Think with your head, not with your heart. <br><br> Related: <a href="https://www.hgtv.ca/tips-and-tricks/photos/essential-things-every-homeowner-needs-to-know-1924386/" rel="noopener" target="_blank">10 Essential Things Every Homeowner Needs to Know</a>Photo Credit: McGillivray Entertainment
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3. Buying at the Top of Your Budget
3/103. Buying at the Top of Your Budget
3/10Photo Credit: Getty Images/Hero ImagesSource: www.gettyimages.ca
Just because you get approved for a certain amount of financing it doesn’t mean that’s what you should spend. You need to do a proper budget breakdown and make sure you either have enough to maintain your current lifestyle, or make the appropriate compromises. I always recommend doing a practice mortgage the year before you want to buy. Put away the amount of money you would spend on mortgage payments and property taxes to make sure you can afford it. At the end of the year you’ll have a more realistic idea of what you can afford, plus you’ll have some extra money put aside for the down payment.Scott McGillivray10 Common Mistakes Made by First-Time Homebuyers, According to Scott McGillivray3. Buying at the Top of Your Budget
PHOTO 3 of 10READ LESS -Just because you get approved for a certain amount of financing it doesn’t mean that’s what you should spend. You need to do a proper budget breakdown and make sure you either have enough to maintain your current lifestyle, or make the appropriate compromises. I always recommend doing a practice mortgage the year before you want to buy. Put away the amount of money you would spend on mortgage payments and property taxes to make sure you can afford it. At the end of the year you’ll have a more realistic idea of what you can afford, plus you’ll have some extra money put aside for the down payment.Photo Credit: Getty Images/Hero ImagesSource: www.gettyimages.ca
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4. Not Shopping Around for Mortgages
4/104. Not Shopping Around for Mortgages
4/10Photo Credit: Getty Images/Kittisak Jirasitti Chai/EyeEmSource: www.gettyimages.ca
A mortgage is a big deal, so don’t go with the first one you find. Shop around with different lenders and find the one that works best for your lifestyle and your future plans. You may have more options than you realize, so take your time and do some comparison shopping. <br><br> Related: <a href="https://www.hgtv.ca/real-estate/photos/questions-to-ask-your-real-estate-agent-before-selling-1913136/" rel="noopener" target="_blank">7 Questions You Need to Ask Your Real Estate Agent Before Selling</a>Scott McGillivray10 Common Mistakes Made by First-Time Homebuyers, According to Scott McGillivray4. Not Shopping Around for Mortgages
PHOTO 4 of 10READ LESS -A mortgage is a big deal, so don’t go with the first one you find. Shop around with different lenders and find the one that works best for your lifestyle and your future plans. You may have more options than you realize, so take your time and do some comparison shopping. <br><br> Related: <a href="https://www.hgtv.ca/real-estate/photos/questions-to-ask-your-real-estate-agent-before-selling-1913136/" rel="noopener" target="_blank">7 Questions You Need to Ask Your Real Estate Agent Before Selling</a>Photo Credit: Getty Images/Kittisak Jirasitti Chai/EyeEmSource: www.gettyimages.ca
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5. Not Accounting for Repair Costs
5/105. Not Accounting for Repair Costs
5/10Photo Credit: McGillivray Entertainment
When you buy a home you no longer have a landlord to fix your problems. If an appliance breaks down, it’s all on you. If a pipe bursts, it’s all on you. If anything goes wrong at all and needs fixing, it’s on you. Make sure you have an emergency fund set aside for repairs, both big and small.Scott McGillivray10 Common Mistakes Made by First-Time Homebuyers, According to Scott McGillivray5. Not Accounting for Repair Costs
PHOTO 5 of 10READ LESS -When you buy a home you no longer have a landlord to fix your problems. If an appliance breaks down, it’s all on you. If a pipe bursts, it’s all on you. If anything goes wrong at all and needs fixing, it’s on you. Make sure you have an emergency fund set aside for repairs, both big and small.Photo Credit: McGillivray Entertainment
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6. Forgetting About Closing Costs
6/106. Forgetting About Closing Costs
6/10Photo Credit: Getty Images/Nattanart Prasomski/EyeEmSource: www.gettyimages.ca
There’s more to buying a house than just the house itself. Closing costs can include legal fees, land transfer taxes, home inspection fees, and more. It’s tough to say exactly what the closing costs will be on any given property, but usually two to five per cent of the cost of the house is a fair estimation. <br><br> Related: <a href="https://www.hgtv.ca/real-estate/photos/buying-first-home-2019-1923194/" rel="noopener" target="_blank">7 Things to Consider Before Buying Your First Home in 2019</a>Scott McGillivray10 Common Mistakes Made by First-Time Homebuyers, According to Scott McGillivray6. Forgetting About Closing Costs
PHOTO 6 of 10READ LESS -There’s more to buying a house than just the house itself. Closing costs can include legal fees, land transfer taxes, home inspection fees, and more. It’s tough to say exactly what the closing costs will be on any given property, but usually two to five per cent of the cost of the house is a fair estimation. <br><br> Related: <a href="https://www.hgtv.ca/real-estate/photos/buying-first-home-2019-1923194/" rel="noopener" target="_blank">7 Things to Consider Before Buying Your First Home in 2019</a>Photo Credit: Getty Images/Nattanart Prasomski/EyeEmSource: www.gettyimages.ca
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7. Buying Too Much House
7/107. Buying Too Much House
7/10Photo Credit: Getty Images/Hero ImagesSource: www.gettyimages.ca
Everyone has an idea of what their dream house should be, and the majority of people think bigger is better. But that’s not the case if you can’t afford to maintain it. Give some serious thought to how much time and money you want to spend maintaining and caring for your home. Too much house can be overwhelming, especially when you're a first-time homeowner.Scott McGillivray10 Common Mistakes Made by First-Time Homebuyers, According to Scott McGillivray7. Buying Too Much House
PHOTO 7 of 10READ LESS -Everyone has an idea of what their dream house should be, and the majority of people think bigger is better. But that’s not the case if you can’t afford to maintain it. Give some serious thought to how much time and money you want to spend maintaining and caring for your home. Too much house can be overwhelming, especially when you're a first-time homeowner.Photo Credit: Getty Images/Hero ImagesSource: www.gettyimages.ca
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8. Getting Caught in Bidding Wars
8/108. Getting Caught in Bidding Wars
8/10Photo Credit: Getty Images/CaiaImage/Charlie DeanSource: www.gettyimages.ca
Do not get caught in a bidding war. Full stop. The only people who win are the sellers. Before you start looking you should know how much you can afford and, before you put in an offer, you should know <em>exactly</em> how high you’re willing to go. If a bidding war starts and it goes past your price, stop. It’s not worth it. Another house will come along.Scott McGillivray10 Common Mistakes Made by First-Time Homebuyers, According to Scott McGillivray8. Getting Caught in Bidding Wars
PHOTO 8 of 10READ LESS -Do not get caught in a bidding war. Full stop. The only people who win are the sellers. Before you start looking you should know how much you can afford and, before you put in an offer, you should know <em>exactly</em> how high you’re willing to go. If a bidding war starts and it goes past your price, stop. It’s not worth it. Another house will come along.Photo Credit: Getty Images/CaiaImage/Charlie DeanSource: www.gettyimages.ca
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9. Waiting for the "Perfect" House
9/109. Waiting for the "Perfect" House
9/10Photo Credit: Getty Images/chuckcollierSource: www.gettyimages.ca
The term "dream house" gets thrown around a lot, but the reality is that perfect houses are often made and rarely found. You need to look past ugly paint colours and chipped tile and consider what improvements you can make yourself. Waiting until you find something "perfect" that’s within your budget means you’ll likely be waiting a long, long time.Scott McGillivray10 Common Mistakes Made by First-Time Homebuyers, According to Scott McGillivray9. Waiting for the "Perfect" House
PHOTO 9 of 10READ LESS -The term "dream house" gets thrown around a lot, but the reality is that perfect houses are often made and rarely found. You need to look past ugly paint colours and chipped tile and consider what improvements you can make yourself. Waiting until you find something "perfect" that’s within your budget means you’ll likely be waiting a long, long time.Photo Credit: Getty Images/chuckcollierSource: www.gettyimages.ca
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10. Not Considering an Income Suite
10/1010. Not Considering an Income Suite
10/10Photo Credit: Getty Images/Peter MastravitoSource: www.gettyimages.ca
Getting into the housing market these days can be tough. One way to make it more manageable is with an income suite. If you’re a first-time buyer I highly recommend looking at houses with existing income suites, or at least a separate entrance and the right foundation to make creating one plausible. <br><br> Related: <a href="https://www.hgtv.ca/shows/income-property/photos/classic-contemporary-basement-income-suite-1049984/" rel="noopener" target="_blank">Classic Contemporary Basement Income Suite</a>Scott McGillivray10 Common Mistakes Made by First-Time Homebuyers, According to Scott McGillivray10. Not Considering an Income Suite
PHOTO 10 of 10READ LESS -Getting into the housing market these days can be tough. One way to make it more manageable is with an income suite. If you’re a first-time buyer I highly recommend looking at houses with existing income suites, or at least a separate entrance and the right foundation to make creating one plausible. <br><br> Related: <a href="https://www.hgtv.ca/shows/income-property/photos/classic-contemporary-basement-income-suite-1049984/" rel="noopener" target="_blank">Classic Contemporary Basement Income Suite</a>Photo Credit: Getty Images/Peter MastravitoSource: www.gettyimages.ca
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