Owning a perfect home is a dream for many. But a home with a tag ‘perfect’ should not just mean that it satisfies your entire requirement but also its purchase and resale (if required in future) should be hassle-free. The hidden things in the process of buying a house make the task more troublesome. It requires a lot of research, preparation, and most importantly proper and correct guidance. First time homebuyers are more prone to do mistakes while buying a new property, which they inevitably regret at a later stage. Lack of knowledge and lack of proper guidance are the main culprits for some disastrous mistakes. Check out some top mistakes in this article that can be avoided easily by being knowledgeable and making smart decisions.
Wrong Estimation of Budget
The foremost and essential step towards buying a home is budgeting. Before assuming the affordability of homeownership whether it is ‘yes’ or ‘no’, make a budget. To purchase a house most people rove eyes for a loan. Consequently, monthly payments of mortgage are to be made. Evaluation of income and expenditure sheds light on the most appropriate amount that you can pay comfortably for the next 10 to 20 years. Wrong estimation of budget arises mostly when the maintenance cost of the newly purchased house is neglected. Many first time homebuyers purely skip to account these expenses. Home-ownership comes with a financial responsibility of maintaining the house, be it any kind of repair, replacement or renovation. None of them have anything to do with your mortgage payment. Have a vision and estimate your budget accordingly.
Not Spending Enough Time for Inspecting the House
Most of the first time homebuyers belong to the age group of 30 – 40 years, generally having a busy schedule to follow. Hence they spend a very little time on inspecting the house. A thorough examination of the house is always valuable. The exploration of the house should not be limited to just intramural inspection but other influential factors like location of the property, its neighborhood, connectivity, history and testimonials of the builder, etc., that should always be taken into consideration before the deal is finalized.
Failing to See the Hidden Costs of Buying a Home
When the deal comes to be finalized many of the buyers make a mistake of assuming that all this is going to be simple and trouble-free. That is the time when the thunder strikes and the hidden costs creep up. For example, appraisal fee, service charges for final housekeeping, escrow fee, property taxes, notary fee, and transfer of insurance fee, such hidden charges could cost you around 5-6 percent of the total amount of the property. It is advisable that the buyers ask and account for such charges so that bewildered situations do not arise for them at the time of closing the deal.
Not Giving a Thought to Home Resale Value
As first time buyers you will be definitely smitten with the house and you may not even like the thought of its resale value crossing your head as you confirm yourself not to do that in future. But the resale value of the home should always be considered. After all buying a home is kind of a financial investment wherein you put down your hard earned money. A good foresight and planning will keep you prepared for any unforeseen situation in the future.
Revealing Your Love for the House
Have you ever experienced love at first sight? There is some amazing feeling associated with it. It also holds true when it comes to some beautiful homes. Yes, you may fall in love with any house at the sight of it and you may love it more and more when it invitingly ticks out all the check boxes of the checklist you have made for the kind of house you desire. Though it is good to fall in love with a house, but do not reveal it to the seller’s agent. This is a foolish financial mistake where the seller can trick you to overpay. Loving is amazing but it will also blind you of the many other things discussed above, making you overlook or neglect them. Be very careful with your emotions when it comes to the matters of finance.
Some more common mistakes are
- Not opting to hire your own agent
- Following realtor’s advice with a blindfold
- Not considering the housing market
- Not properly perusing the paper work
There are great resources available on the World Wide Web which can make home buying research easy these days, but many of them can be misleading too as it is an affair of financial matters. For transparency and effective conveyancing quotes you can rely on firms like conveyancing quotes London that are trustworthy in offering services of conveyancing solicitors nationwide.