Buying a house is without a doubt one of the biggest investments in a person’s life. However, it also one that can lead to massive disappointments if you commit a lot of mistakes while looking for a house to buy.
Many first-time buyers, perhaps to do overexcitement or a lack of experience, rush into the housing market without knowing what they want and where to get it. This leads to them spending a lot of money on houses that are overvalued and which are not aligned with their financial goals.
Here are the big mistakes first-time home buyers make.
Lacking a financial plan
Houses do not come cheap so you need to plan your finances accordingly before you go into the buyer market.
A lot of first-time homeowners underestimate the actual costs of buying a house by only focusing on the asking price for any given property. There are hidden costs to buying a house that include taxes that range between 2-5% of the property, attorney’s fees, insurance cover and the interest rates if you are financing your purchase through a bank loan or a mortgage.
If you need a loan like a Roundpoint Mortgage then make sure you get it pre-approved so that your finances are ready when you find a suitable house.
More importantly, get appraised so that you know how much exactly you can afford so you don’t invest in a house that is beyond your means and which will strain you financially.
Not considering the resale value
Buying a house is an investment like any other and you must always consider the value you are getting and how much you can make from it.
Many first-time home buyers make the mistake of not considering the resale value of the property they are investing in. You must always take into account the resale value of the house regardless of whether you’ll be staying in it or renting it out.
Failing to conduct an inspection
A number of first-time home buyers commit to a purchase agreement without conducting a physical inspection of the house to ensure they are getting value for their money. Inevitably, this results into many short-changed and bitter home owners.
Never buy a house on paper. It is important to visit the site and inspect the house. If need be, hire the services of a professional to look at the various aspects of the house including its structural integrity, design, location so that you get the right value for the property.
The house must be in good condition and readily habitable otherwise you will incur extra expenses in repairs before you even move in or rent it out.
Not having a legally binding agreement
Never conduct a transaction through word of mouth. All your agreements must be put down on paper by an attorney. This protects you from being a victim of the many scammers in the real estate sector.
As a general rule, always conduct your due diligence before agreeing to any contract. Find the background information of the seller or real estate agent and do not do any business wit them if you notice any red flags.
