Buying a home is an achievement that is identical to so many feelings. Such an investment will often elicit excitement, fear, joy, trepidation, and any other expression that falls within the emotional spectrum. To put it mildly, it’s a captivating experience for anyone who has achieved this milestone.
If you’re a first-time buyer, this process is undoubtedly magnifying, but seasoned buyers are not equally safe because they find it to be challenging at times. It’s a process that involves so many moving parts, and if you aren’t a bit cautious, you might make a regrettable decision.
From time to time, even the best real estate agent will experience setbacks. While mistakes are bound to happen, preventative measures can help you avoid the most notable ones. Better yet, there are mistake mitigation efforts that will enable you to be proactive, despite your lack of experience.
When everything is new, nothing is straightforward. Luckily, you’ll learn some of the common mistakes you should avoid when investing as big as buying your first home. Here are a few.
Emotional Decisions
As much as there’s an emotional connection that comes along with buying your first home, you cannot let this attachment dictate your decision-making process. Before you put pen to paper, you should predict all your considerations on numbers. After all, it’s the numbers in your budget that will influence what you’re looking to get out of the property you intend to buy.
If you do not put your emotions in check, you might end up paying more for a home beyond its actual worth. Such a scenario is synonymous with getting the raw end of the deal.
While it’s human nature to get attached to a particular property, do not get carried away. Since plenty of other houses will come along, do not allow your emotions to be the deciding factor. At this point, sound judgment should be your foremost ally.
Do it On Your Own
We live in a time where technology has made everything easier than it used to be. Therefore, searching for a home should not be difficult, considering that you have the internet at your disposal. There are plenty of sites whose primary role is to help you find a property that will suit your tastes and preferences.
Even as you look up for these sites, you’re likely to come across a sheer volume of homes, and this can lead to analysis paralysis. If need be, these sites should serve as a research tool in contrast to a physical home search.
When it’s time to search for a home physically, perhaps you should enlist a little help. In any event, two minds are better than one. Allow your real estate agent to inspect homes in your place because they might be aware of listings that aren’t placed on the market yet.
Assuming the Rules
Owning a home is undoubtedly associated with freedom. Perhaps this could be the first time you don’t have to follow your previous household’s applicable rules. However, nothing could be further from the truth because even as you join the league of homeowners, homeownership rules still apply.
There’s a likelihood that your most preferred home will come with deed restrictions and conditions. The rules of homeownership can vary dramatically, but they’re applicable in particular neighborhoods. More often than not, the purpose of deed restrictions and conditions is to provide the area in question with market stability.
Failure to Save Enough Money
It’s quite an accomplishment if you manage to save up the requisite funds to purchase your first home. Today’s economy has made it virtually impossible for anyone to transit from renting a house to buying one of their own.
Other than the initial cost, most people hardly save enough in preparation for what comes next. Owning a home comes with its fair share of incidental costs. Therefore, ensure that you save up enough money to account for the homeowner’s follow-up costs.
Buying a home comes with additional closing costs, and you need to be aware of all of them.
Overlooking the Essence of a Pre-approval Letter
It has become common for first time-homeowners to ignore the essence of getting pre-approved letters from their respective banks. If you bring this document with you, it will increase your chances of securing your desired property.
Furthermore, having a pre-approval letter will give you a rough idea of the kind of property you can afford. In any case, sellers tend to go for pre-approved offers because they come with a specific loan amount. By taking these precautions, the seller is reducing the likelihood of the deal falling apart.
A pre-approval letter is the bank’s way of saying that it’s comfortable to advance you a certain amount of money.
Ignoring the Resale Value
Often, going for the biggest house on the block is not the best idea. In real estate, when a smaller home is in the midst of beautiful larger homes, it tends to sell for more compared to a spacious house in a denigrated neighborhood.
When buying a home, never overlook the most pertinent resale factors, such as lot size, location, number of bedrooms and bathrooms, and so on. If a property does not have an attractive resale value, perhaps you should go for something that will give you a considerable return.
Forgoing Inspection
As a first-home buyer, the worst mistake you can make is to waive your property’s inspection. It’s through inspection that you’ll get to know whether you’re about to buy something unexpected.
Ordinarily, if you happen to find something significant, it’s likely the current owners are unaware that anything of the sort existed. Some notable things, e.g., an unstable foundation or mold hidden in the attic, may come as a surprise to the seller and the buyer.
In a Nutshell
Buying a home is a life-changing decision that calls for some bit of due diligence. While emotions will come into play, you do not have the luxury of making regrettable decisions. Being aware of the issues you should look out for will give you the freedom to shop with confidence.
