Buying a new home is undeniably the most exciting and rewarding experience of a lifetime, especially if it’s your first time. However, it’s important that you keep track of what’s going on during the purchasing process to avoid mistakes. Overwhelmed buyers are more prone to making mistakes and missing the important details during the home-buying process. So, to help you avoid making those mistakes, we’ve compiled a list of a few of the most common mistakes.
Too focused on the idea of buying.
When you have the capacity to buy a new home, it doesn’t always mean that you should jump into home ownership head first. Owning a new home is almost everyone’s dream. However, there are actually some huge financial advantages associated with renting a home. As you know, home ownership comes with quite a number of liabilities. Paying yearly property taxes, those costly and sometimes untimely repairs, and utility costs, just to name a few. On the other hand, if you’re renting, you’ll only be concerned with your monthly rent payment, as it most always includes your major utility costs. Moreover, you won’t be responsible for the property management. So, before moving forward with a home purchase, consider all your options first.
Overrating the home valuation.
Home valuation is crucial, as it’s a solid way to get an estimate of how valuable a property actually is. Unfortunately, some of the best known tools used to estimate property value aren’t as accurate as you may think. There are many factors that contribute to a property’s worth, reaching far beyond its financial value. Factors such as location, the state, and future of its neighborhood, as well as your personal attachment to the property all come into play.
Ignoring the market trends.
It’s important to keep in mind that the housing market is in a state of constant change, and that means prices rise and fall due to the current market trends. So if you’re buying at a particularly high time, you could end up losing money on your investment in the long run. However, that doesn’t mean you can only buy a home during a particularly low period, but it’s a good idea to keep up with what’s happening in the housing market.
Not getting a buyer’s agent.
More often than not, a seller will hire a agent to increase their chances of selling their home at a good price. And buyers should do the same! Having your own agent can help you find your ideal home and secure a great deal. This small step can make your search for the right home a breeze.
Not conducting a professional home inspection.
Getting a home inspection is a must. Even a house that looks great on the outside still needs to be inspected because that doesn’t necessarily mean it’s in perfect shape. It’s important to know exactly what improvements are due in the near future and what issues require immediate repairs. A home inspection can actually save you money on the cost of your home and on future repairs.
Allowing emotions to rule their decisions.
It’s common for first-time home buyers to let their emotions enter the equation. You get positive or negative vibes from every home you visit. You’ll even imagine yourself living in a home that you visited. This is a good thing to some extent, but allowing your emotions to completely rule your decisions can be a huge mistake. Don’t risk passing up a logical choice or making a premature jump into an uninformed choice.
Being too picky.
It’s certainly not a good idea to go with the first house you see, and it’s extremely important to set specific goals on what you want in a home. However, keep the standards realistic, and remember that a “perfect” house probably doesn’t exist. While it’s important to take your time in choosing the right home, being too picky may cause you to miss out on some great opportunities.
Not accounting for other expenses.
Finding a mortgage calculator to help you estimate the regular monthly costs of a property is quite easy. Generally, most lending companies provide their own version of this essential tool. It’s a great way to approximate how much you can afford based on your current salary and help you project a long-term budget, but it doesn’t factor in the other expenses that come with owning a home such as utilities, regular maintenance, and home improvements. So, be sure to properly account for all possible expenses to avoid going over budget.
There are so many mistakes that home buyers can commit or omit depending on their individual situation, so it’s important to get as much information as you can before making a purchase. If you’re considering the purchase of a new home and need a professional home inspection, ask your agent to recommend a local professional in your area.