It has always been a go-to escape for the fledglings to just chalk up every rookie mistake they make to experience. But, if you are a first-time homebuyer, fumbling your way into homeownership could be a bitter pill to swallow. Purchasing your first real estate property is a major life decision, and screwing it up could have you end up losing tens of thousands of hard-earned money, and have you trapped in a quagmire for a long term.
So, to help keep first-time homebuyers from committing a major boo boo, we list down some of the most common mistakes novice buyers tend to make.
Looking Past Home Inspection
Foregoing home inspection is one of the costly mistakes you can make as a homebuyer. Keep in mind that there are professionals who are more well-equipped to tell you what the flaws of the property in consideration are. Issues like structural defects, plumbing and electrical problems, roofing damages, and termite infestation are easily overlooked. Home inspection could save you a lot of money down the road, or by making concessions with the seller.
Letting Emotions Get The Better Of Them
“It’s OK to get excited when you think you’ve found your house, but you don’t want to put yourself in a bad spot,” says David Tina, president of the Greater Las Vegas Association of Realtors.
Try to make rational decisions, and keep your emotions in check. Don’t buy a house just because you like it so much even though it’s well beyond your budget, or try to win an intense bidding war just for the sake of it.
Keeping Resale Out Of Consideration
Yeah, this one may sound counterintuitive. After all, you are hoping to buy your own house and not sell one. But, it’s always more prudent to have a foresight. There might be a need to re-locate or list your property in the market in the future, and factors like location, number of bedrooms and baths, and size and layout could affect your home resale value.
Falling In Love At First Sight
There are times when the first house you visit already fits the bill on what you’re looking for. But, make sure you survey the field a little bit more. You can ask your agent to show you comparable properties within or out of the area to avoid impulse buying and regretting your decision in the end.
Failure To Get Pre-approved
It would be a total waste of time to make offers on a property only to find out in the end that your mortgage application was denied. Getting pre-approved for a mortgage also gives you an idea on how much you can afford to buy.
Not Making Any Research On The Neighborhood
Doing a research on the surrounding area of the property is also important to help you make a more informed decision. Your home’s value could diminish when the neighborhood has high crime rate, or is located near a busy airport. Also, watch out for bad traffic in the area, poor transportation systems, and lack of good schools
Not Buying For The Future
You might be single for now, or you’re a new couple with just one kid, but what if you end up having a big family in the future?
“To avoid getting caught having to sell a home too quickly, think through what needs you are going to have over the next five to 10 years and make those a requirement,” says broker David Feldberg of Coastal Real Estate Group.
It’s easy to get caught up in the trivial details of a house like a leaky faucet or an eyesore of a wall paper. But, these things can be easily fixed. Keep in mind, too, that you can’t have everything you want in one house. It’s good to consider the minor details, but don’t let it dictate the terms.
Not Taking Into Account The Full Cost
Bear in mind that the financial cost of buying a house is not just about the down payment and your monthly mortgage. Take into consideration other fees like closing costs and property taxes.
Waiting Too Long
In a tight market, you’ll find smaller home inventory and homes flying off the market quickly. Make sure you don’t sit on the fence for too long and miss out on a good property.