Whether it’s buying a house for the first time or selling an existing home to buy a bigger one, property purchases can be both an exciting and frustrating time in anyone’s life.
You’re probably reading this blog post because you want to buy a new house or apartment soon. You might not know it, but there are several ways that homebuyers lose significant sums during the home buying process.
The following points out a few different problems to avoid when buying a property:
1. Failing To Negotiate
It’s an unwritten rule that you should never pay full price for any property you purchase. Houses, apartments, and other residential properties always get priced at slightly higher than market value to allow for negotiation.
The trouble is, some new homebuyers fall in love with a potential new abode and feel like they must buy it irrespective of the cost. In some cases, they might even pay more than the asking price if they think there is still competition!
That’s why you should always negotiate on the price before you buy any new home.
2. Lack Of Vision
Another way that homebuyers can fall afoul from a financial perspective is when they don’t have any vision.
Yes, it’s always good to weigh up your options when looking at potential new homes to buy. However, it’s rare for a property to be on the market that is perfect (to you) in every way and ready for you to buy.
If a potential new home hasn’t got the right decor or color scheme, don’t let that be a dealbreaker. Instead, look past such issues, as you can easily remedy them yourself after the purchase.
3. Not Considering All Costs
When it comes to buying a residential property, the one thing you must do is think about all the costs associated with its purchase. For instance, some people fail to account for all closing costs like title fees, taxes, insurance, and home loan fees.
Sometimes, it can be hard to calculate precise costs for purchasing a home. That’s because you may need to carry out remedial work, and it’s often almost impossible to quote a precise figure for some types of repairs.
4. Forgetting About Your Future Needs
It’s easy to get caught up “in the moment” when considering a new house for sale. Many people tend to think about their current circumstances. For example, a couple purchasing their first home may fail to think if it’s big enough for a growing family.
Similarly, a young family moving into a new abode may not consider whether there’s enough room in their property as their children get older. That’s especially true for young kids sharing a bedroom; each will want their own room when they outgrow their existing shared space.
5. Failing To Select The Right Mortgage
For most people, there will be a need to borrow the money for their home purchase. If that applies to you, it’s crucial you select the right mortgage for your needs and financial circumstances.
The last thing you want to do is end up with a mortgage that is costing you a lot of money. Make sure you compare the different mortgage options on the market before going with a specific provider. Doing so will mean you can afford your mortgage and any future increases.
6. Underestimating Any Immediate Repairs
When you buy a new home, you will have to spend some time making a few changes – typically painting and decorating. However, there might be some immediate repairs that you must conduct before your new home is habitable.
For instance, you may need to replace a fuse box or have a section of your roof repaired due to damaged tiles. Sadly, some people try to guess how much such repairs might cost instead of getting quotes or estimates.
Never underestimate the cost of any immediate repairs, as they could potentially make you broke if you’ve not accounted for them.
There’s no denying that buying a house is a significant financial commitment. That’s why you should take some time to calculate your ideal budget for a house, plus the cost of any remedial work once you move into it.
Often, there will be times when you might go over your budget slightly. The reasons vary from underestimating the number of raw materials needed, to deciding on a different approach to tackling a repair.
Once you get approval for a mortgage, ensure you take a contractor with you on a repeat visit to a property you want to buy, so you can get an approximate cost for any repairs or alterations.
You can typically work out your mortgage costs and other associated home-buying fees by using an online home buying calculator.
8. Forgetting To View The House Several Times
The golden rule of buying a house, apartment, or any other residential property is to visit it several times. For instance, you should take a look inside and around it at different times of the day or say on a weekday and weekend.
If you don’t view a house you want more than once, you could end up with an expensive problem on your hands. For example, you might need to upgrade your windows and doors to deal with noisy traffic.
9. Being Too Picky With Your Property Search
You will undoubtedly have some ideas in mind for your perfect property. A home with three bedrooms and a large backyard might be your vision, for instance.
Don’t be too picky with your property search. By making some small compromises, you could end up with a better home and potentially save lots of money.
10. Not Paying For A Full Pre-Purchase Inspection
Lastly, a big mistake many new and experienced home buyers make is forgetting to pay for a full pre-purchase inspection. Such a home survey will highlight any potential issues, especially ones that could cost you a lot of money in the future.
You can use the results of such inspections to help you negotiate the price.