When you consider the fact that buying a home is the single largest expenses that most people will incur during their lifetime, the consequences of making a mistake during the purchase process can be absolutely disastrous. Therefore, it is imperative for first-time house buyers to understand how to avoid amateur house buying mistakes and turn the tide in your advantage.
Failure to Consider the Hidden Costs
When buying a home, it is almost a certainty that you will pay more than the advertised selling price. Additional closing costs that are often neglected are home inspection fees, taxes, costs for repairs, purchasing new furniture, the cost of moving your belongings into the new house, and etc. These costs can quickly and dramatically drive up the total cost of the purchase, and would-be homeowners who haven’t factored them into the equation may find themselves underwater.
Selecting an Inexperienced Realtor
When purchasing a home, a realtor can either be your greatest asset or your worst liability. The outcome depends on the individual you choose. Unfortunately, too many first time homebuyers focus on the fees that a realtor charges as opposed to their experience and track record. A good realtor will always have your interests in mind, and will think about more than just getting a quick sale.
Not Performing a Home Inspection
It typically costs tens of thousands just to place a down payment on a home, after which you may make monthly payments for as long as thirty years. Do you really want to spend that kind of money without taking the time to thoroughly inspect the property? A professional inspector should be hired for this task, and if they report that the home has structural problems or other issues, the asking price should be lowered by the seller or you should walk away from the deal. Being sold a lemon when buying a car is bad, having the same thing happen when buying a house is cataclysmic.
Failure to Remain within Your Budget
Unless you’re extraordinarily wealthy, it would be wise to establish a budget before buying your house. As stated previously, there are a bunch of hidden costs associated with homeownership, and all these things must be factored into the equation. Once you’ve done this, it is important to stick to it.
Forgetting about Property Taxes
Even if you can afford to buy a house, you may not be able to afford the property taxes which are levied on it. Homeowners in many parts of the U.S. are expected to pay property taxes. These taxes should be taken very seriously, as you are expected to pay them even after your mortgage has been paid off and if you don’t, the property can be foreclosed. The property taxes for one local area can differ significantly from another, even within the same state, so this should be an area of intense research on your part.
All in all, buying a home is a serious process, and homeowners should not be impatient or emotional during the process. If you want to avoid common mistakes made by first-time home buyers, work with us today and let us help you get it right the first time round!
