Buying a house is undoubtedly one of the most exciting endeavors in the life of a common man. So, usually they make sure to be careful while taking every step. However, at times they overlook some crucial things and end up with a raw deal. By learning a little about some blunders that home-buyers usually commit, you can actually make sure not to fall into any expensive trap while setting about to purchase a new home.
The following are the major 10 mistakes made while buying home:
- Not considering the additional expenses
Every buyer should be prepared for additional expenses as they are likely to occur after you become a homeowner. You would have to pay for the insurance, property taxes, repairs and many other service fees. Not considering all these expenses would make it difficult for you to arrange finance for all these things after owning the house. Be prepared beforehand to avoid problems that may become a reason for stress and frustration later on.
- Impulse Buying
Buying a pair of shoes on impulse is probably okay. Buying a new home on impulse definitely isn’t. So many people get swept up by their excitement when they first see a home they really like and end up buying it – on impulse. You need to set your emotions aside when making any investment and look at it from a practical and logical perspective.
- Not hiring professional services
Home buying is a complex task. So, do not be indecisive when it comes to hiring professionals. Assistance of a real estate agent, banker, lawyer, property inspector or financial adviser, with an excellent referral basis, can be of immense help for you. Hiring a property agent who comprehends your financial limitations and requirements can play a pivotal role in helping you purchase your dream home with ease. Besides, a home inspector who can meticulously perform inspection of your new house and a lawyer who is highly knowledgeable about the real estate rules, regulations and laws are also important to be hired.
- Rushing a deal
One of the most common mistakes, hastily buying a home from the wrong person can ruin your life. If the seller is pushing you to close the deal too quickly, there may be something amiss. To protect yourself from shady sellers, hire a reputable realtor who can guide you through the process.
- Having no idea what you’re looking for
It is important to have a plan, and to know just exactly what you are looking to buy. If you have no idea what you want, you’ll probably end up buying something that you’ll eventually regret. Take the time to figure out what you want to purchase. Take into consideration your needs and financial capabilities. Writing out a specific plan will narrow down your options significantly, saving you valuable time and effort.
No matter what property you buy, location is critically important. No matter how great the property, you need to look at the broader context to truly access its value. Proximity to schools, public transport and amenities are very important aspects that can affect the resale value of the property.
- Buying a great property in the middle of nowhere
Generally, it is wiser to purchase a property that is located in a great neighborhood, as opposed to a more impressive property in a horribly inaccessible location. Even if you work from home, or have a lifestyle that you think will negate any accessibility problems, bear in mind that property in a great location is likely to increase in value as time goes by, while property in a bad location will drop in value as the structure deteriorates.
- Not conducting sufficient research
Don’t take the seller’s word at face value; do your homework. Ask around the neighborhood, contact other realtors who may have encountered the property. If the seller discourages you from asking around about the property, that is obviously a huge red flag.
No matter what you are buying there is one important thing that is always negotiable and that is the price. Sellers want to get as much as possible while buyers want to save as much as possible. It’s important that you always get an accurate evaluation of the value of the property in the current market and never pay more than that.
- Questionable legality
There have been actual instances of people being sold property by people who did not have a legal right to sell the property. Victims of these deals are left devastated, left without their money and without a house. Buying a property without checking whether or not the seller has the right to sell it is almost as reckless as buying a deed to the Brooklyn Bridge. If you have any concerns, it may be a good idea to consult your lawyer.
As all the mistakes outlined above are easily avoidable, make sure that you avoid them whenever you plan to buy a house. Purchasing a house is one of the biggest decisions of one’s life thus you just cannot afford to be careless. Don’t make these 10 mistakes while buying home. Be careful of any decision you make.