5 Common Mistakes That First-time Home Buyers Make
Lack of experience and the excitement of owning your own property leads many first time home buyers to make mistakes when buying their first home. These mistakes, no matter if they are large or small, can have a negative impact on both the home buyer and the home itself. If you are planning on purchasing your first home in the near future, educating yourself on the more common mistakes others have made when buying a home is the best way you can prevent these same mistakes from happening to you. Below we highlight 5 common mistakes that first time buyers make:
Purchasing based on emotion
Purchasing a home can spur different emotions, and these feelings can impact your purchase. As much as loving your future home and its features is important, buying a home that meets your needs and is in your price range is more practical. When buying off emotion, it is easy to convince yourself that you need that extra room or added feature, even if it comes at an extra cost. In a market like the one we are seeing now, where most home sales end in a bidding war, it is difficult to keep your emotions in check, especially if you have lost out on other potential homes previously. Taking time to consider an offer is your best way to avoid emotional decisions.
Draining your savings
Draining your savings for an asset might seem like a good idea, but the reality is that there are other expenses that come with home ownership. Moving into a new home will require potential repairs, may require you to purchase furniture, there are monthly living expenses such as utility bills and food as well as closing costs. Draining your savings to purchase your home can leave you in financial trouble in the future. It is always a good idea to have money set aside for other expenses when house shopping.
Not scrutinising the location
Often, the satisfaction derived from a home is closely linked to the environment around it. If the environment is not suitable to your tastes or needs, there is a high chance that you might regret buying your home. Before you put an offer on a home, ensure to find out about your neighbours and the local community, nearby restaurants, parks, shopping centres, schools, access to highways or public transit are all important to consider when buying a home.
Bypassing home inspection
An official inspection of a house is indeed important before a purchase. A lot of first time owners will forgo the option of a home inspection in order to have a more appealing offer, and this decision can have negative effects in the long-run. Without a thorough home inspection, you may not be aware of any existing issues in the home.
Not hiring a real estate agent
Real estate agents are a huge asset to any home buyers, but their experience is a major asset for first time home buyers. A professional real estate agent will offer you a different perspective on a home based on their experience and knowledge. They are able to give you a better idea of the location and nearby amenities, they can point out positives and negatives of a potential home, they can look up recently sold homes in the area to compare pricing as well as help guide you in many other aspects of purchasing a home. Having an experienced real estate agent on your side allows for a smooth buying experience and offers you the best chance at getting your first dream home.
It is easy for anyone to overlook potential issues or make an emotional decision when making a big decision like purchasing a home. First time home buyers however tend to make more mistakes based on their lack of inexperience and their high levels of excitement. Understanding what leads to potential errors is the best way to make sure you don’t make the same mistakes as many other first time home buyers before you have.
