7 Common Mistakes First-Time Home Buyers Must Avoid
Because of that, it’s important to research ahead and know how to choose the best property based on your needs, budget, today’s market, among other factors. There are quite a lot of things that can go wrong when you aren’t well-prepared, so you need to know what mistakes to avoid.
Thanks to experts like Hunter Gather, we’re listing down the 7 common mistakes to avoid if you are a first-time homebuyer.
1. You have no strategy
One of the huge mistakes’ homebuyers make is that they dive into purchasing a home without a proper strategy.
Good strategies are personalized ones, taking your stock of one’s financial position, short and long-term goals, along with today’s state of the real estate market you’re planning to invest in.
A strategy is absolutely crucial and will have you less vulnerable to making choices based on the hyped-up, or sometimes fake, news reports, along with buying from emotions or misinformed advice from others.
2. You base the budget on what your bank lends
Purchasing a property based on what banks would lend, over your personal needs, would lead to mortgage stress. This is especially true for those who don’t have their personal budget controlled well.
Before you invest in something, look into your assets and debts, getting pre-approved for finance before you jump into getting a house. Once you are pre-approved for finance, you know your financial limit, which you should stick to, regardless of how long it will take before you find the best house for you.
Spending more than what you can have you at risk for financial shocks, especially as interest rates increase. There should be leeway for any changes in the future.
3. You are TOO comfy
One mistake is that you sit on the sofa! Wait, what does that mean?
Well according to experts, a big mistake is to get TOO comfortable on the couch when in an open inspection. In doing this, it means that you’re becoming emotionally attached to the property and will want it. Another dead giveaway that the buyer likes the property is if they over-dress for property inspections.
Yes, you are supposed to love the property you’re about to invest but note that this can result in you overpaying more than what the property is actually worth. Emotion would cloud logic, overriding abilities to make a rational decision based on proper research.
4. You skip the building inspection
It’s much better to skip huge discounts rather than to get a property with serious structural issues or pest problems at its full market value.
Potential homebuyers would be turned off by properties because of faults like dark rooms or bad odors. However, there is more to think about before you decide on what house to buy. Some houses may have issues the naked eye can’t see!
The only way you know a house has ‘good bones’ is by having it inspected by professionals.
5. You get advice from friends and family
Once family and friends know that you’re looking into getting a property, you can expect them to give a lot of unsolicited real estate advice. Sure, they can make a great network of support amid the stressful process, though they aren’t the best people to follow advice from.
Don’t make the mistake of following the emotional advice of inexperienced trusted ones over the advice of experienced professionals. Rely on the advice of solicitors, conveyancers, or those who are known to have bought and sold a lot of properties successfully.
6. You forget about the location and other fees
You now found a home that fits your budget and has had it checked for issues, but don’t relax just yet. Make sure that you also review the location of the property. You aren’t just purchasing a house, but the location as well.
Consider the location and where schools are, the crime levels, transportation situation, along with the neighbors and current value of properties around you. Old homes can be repaired or renovated but you can’t change the location!
Furthermore, don’t forget about the hidden costs as you purchase the house. It isn’t just the price of the property, but the agent fees, lender’s mortgage insurance, stamp duty, inspection fees, legal fees, along with council and utility rates, which are just some of the fees worth mentioning!
7. You become too chummy with your agent
A real estate planners job is to sell properties at the best price possible. Besides avoiding the unsolicited advice of family and friends, take the advice of your agent with a grain of salt.
Real estate agents can’t work for both the interests of the buyer and seller. They are employed by property sellers, so they’ll get the best price for their clients. Keep this in mind as you talk with agents, as their best interests would put the property’s best foot forward, glossing over the potential faults.
Wrapping It Up
Hopefully, you learned a lot when it comes to what you should avoid before investing in a house. Take these into consideration for a smoother buying process. Good luck!