Thinking of Buying a New Home? 5 Home-Buying Myths Debunked

Ready to buy a home? Become aware of these top five home buying myths and consider yourself an informed buyer.

Buying a home is a complex transaction surrounded by a fair few misconceptions, and these myths can be costly. Not only can they result in financial setbacks but they may even dissuade you from completing a home purchase – or convince you to buy prematurely.

Myth #1: You Should Buy a House As Soon As Possible

Buying a home is important, but so is the timing. Don’t buy before you’re financially ready. Saving for a down payment sizeable enough that will not leave your cash poor at the end of each month is wise. When you’re budgeting, don’t forget closing costs can add up to around 5% of your purchase price.

Myth #2: All Contracts Are Standardized; No Need to Read Them

This is a pretty huge myth! Buyer and seller representation agreements are not standard. They may use the same paperwork and wording but have different terms and conditions.

Brokers and agents have varying terms and conditions. Therefore, ensure you read and understand the terms and conditions before signing any forms. Also, discuss the terms with your agent and real estate lawyer for any clarification.

Myth #3: You can get out of a signed Buyer’s Representation Agreement Any Time

You find a real estate agent and you find out a short while after that you just don’t click. No problem, you can just cancel and go find someone else! Unfortunately, this is not true. Once the contract is signed, your obligation is stay with that agent should you buy or sell a home within up to 6 months of signing (can vary from contract to contract – see myth #2!). So, before you sign an agreement, make sure your agent is someone you can work with.

Myth #4: You Can Get a Good Deal in the Suburbs

Property is often cheaper in the suburbs. You may get more for your money if you buy a house in the suburbs. However, before you commit to buying a home in the suburb, consider the distance to your workplace, family, and entertainment. You may save on housing but incur more expenses on transportation.

Myth #5: December is a Great Time to Buy

This myth is true… as long as price is your only qualifier. December may be a great time to buy a home but not without limitations. Real estate prices are typically lower in December than in other months.

Average Sold Price (Oakville)

                                        2016                            2017                            2018

September                  $685,987                     $728,875                     $753,000

December                   $684,784                     $690,750                     $706,125

But, although a house costs less in December compared to other months, it should be noted that homes listed for sale in the month are fewer, and hence, you have fewer options.

# of Sales (Oakville)

                                     2016                            2017                            2018

September                  288                              179                              221

December                   163                              139                              119

Almost everyone has a dream of owning their own home. When you’re ready to make a move and you need an experienced real estate lawyer, contact us.