Buying a home is probably the biggest financial investment you’ll ever make. Beyond money, buying a home requires time, insight and energy. Sadly, there are many pitfalls to buying a property that some buyers, especially first-time buyers, can fall prey to. Here are seven of the most common mistakes homebuyers make and what you can do about it.
Every good home purchase requires research and due diligence. Thanks to the internet, it is easier than ever to research and glean insights on the home you are considering buying. First, find out about the location or neighborhood of the property you are purchasing. Make sure the area has the right amenities and facilities including good schools, hospitals and retail amenities. Consider other details such as demographics and crime rates when making your decision.
Working with a top real estate agency such as Usaj Realty can help make working through your options and the process of research and settling on a property an easier task for you.
Underestimating the Costs of Buying a Home
Aside from the amount you pay to purchase your home, there are many hidden and closing costs when completing the deal. These costs could easily add up to thousands of dollars and end up stretching your budget at the end of the process. Some of these costs include:
• Home insurance
• Inspection costs
• Valuation costs
• Loan acquisition costs
Aside from these acquisition costs, other expenses such as renovations, moving costs and new furniture can crop up. It’s important to consider all the possible expenses before signing off on your new home purchase.
Not Doing a Home Inspection
No matter how convinced you are about a property, nothing can replace a home inspection to give you peace of mind. In fact, banks usually require a formal inspection before approving a loan for a home. It’s increasingly common to hire a professional inspector who can help you ascertain the quality of the home, and whether you are getting value for money. These inspectors evaluate everything from the structure of the home, the mechanics and everything in between.
An inspection not only helps you get a feel for the home, but helps identify potential problems that may not be easy to see, such as water damage. Knowing what the challenges a home has can help you negotiate the price of the house before you settle on a price.
Letting Your Emotions Get in the Way
Buying a house can be an emotionally exhausting venture. For starters, many first-time buyers run the risk of falling in love too quickly with a home. When the aesthetics are pleasing, it can be difficult to focus on other important details such as structural integrity. As much as possible, detach yourself emotionally from any home that you like so that you can make a sound decision.
Also, never buy a house out of desperation or because of a fear that someone else might purchase it before you. Similarly, don’t settle for a bad deal when the going gets tough. To get a good deal on your home, you will need a lot of patience to find the right fit for you.
Not Looking to the Future
Before you settle on a home, think about its potential resale value. Consider the neighbourhood and how things could evolve in the years to come. For instance, find out about the prospective development plans that the city has for the area. Developments such as shopping centres, highways, and commercial centres have a huge bearing on whether you will enjoy the property in the ensuing years, and could impact its long-term value as well.
In this article, we’ve shared some of the most common mistakes homebuyers make. This list is by no means exhaustive and there are plenty of other mistakes that homebuyers can make. The most important thing, however, is to be patient, meticulous and seek help from professionals when purchasing your home.