9 Common Mistakes Homebuyers Make
Proper research and taking note of your finances can help you make the most of this milestone
Buying a home is a milestone that doesn’t just involve deciding between a condo unit, a townhouse, or a sprawling multi-storey property. To be able to maximize your budget, you need to do a lot of research while taking into consideration your needs and lifestyle. Though many homebuyers give a lot of thought into the property they want to invest in, it’s inevitable to make a few wrong turns along the way. From buying a house that’s beyond the set budget to ending up in an unpleasant neighborhood, there are common mistakes that homebuyers make that you need to know about so you can avoid them. Let the list below guide you:
Being too picky
Since it’s a big purchase, it’s a given to have a long wish list when it comes to searching for the right property. Some look for quiet neighborhoods, others prefer a furnished space, and there are those who are very particular with the number of rooms a house has. If you’re going to stick to your list, you’ll have a hard time finding a home. If you have a couple of issues on the style and layout of the space, you can address these in the future or when you’ve already settled in. It depends on your budget and timeline if you’re willing to rent for a few more years until you stumble upon the “perfect” property.
Buying on impulse and being swayed by ads
Huge billboards announcing low downpayments, spacious floor areas, and discounts can be tempting—especially if you can’t wait to have your own space. Err on the side of caution and refrain from buying on impulse. Buying a home is not as simple as buying a new phone or a set of clothes. It requires ample research, consulting with a broker, and studying all your options before signing a contract.
Not doing proper research
Looking into a property entails checking the neighborhood where it’s located, the traffic around the vicinity, and the safety of your family after the big move, to name a few. If you’re buying a condo unit, you may want to check on the track record of the developer and ask around if the building administration is efficient in handling issues and requests. Don’t just depend on online feedback and ads—ask actual tenants and feel free to schedule a meeting with the admin.
Falling into the trap of “The Fed Up” purchase
Multiple sources cite “The Fed Up” purchase as one of the most common mistakes homebuyers make. This pertains to the scenario wherein you buy a property out of desperation—especially when you’ve been on the hunt for months and you can’t seem to find a property that suits your needs and budget. Remember, buying a home is a huge decision—you don’t want to make calls that you’ll regret in the future. If you think you’ve been searching for too long, take a break for a couple of weeks before beginning the search again.
Forgetting to inspect the house
Before signing a contract and settling a downpayment, it’s best to hire a professional to do an inspection of the property you’re buying. Keep in mind that these experts are trained to look for faults and major problems. You don’t want to spend your first month in your new home tackling repairs and major renovations, right?
Not preparing for the additional expenses
Buying a home doesn’t just cover paying for the actual house or condo unit. It involves allotting a budget for association dues, monthly bills, property taxes, and having a contingency fund for unexpected repairs. It’s best to be prepared so you can avoid headaches and unpaid bills in the future.
Not taking into consideration your budget
In any purchase, it’s best to always consider your budget. Are you filing a home loan or are you using your savings fund? Study your finances and think of the amount you’re willing to spend before even looking for a property. Spending more and going beyond your budget may result in debts and bigger financial problems.
Failing to review the contracts
Always protect your interests. Review and study the contract or lease you’re signing—you can even have an expert or a legal representative review it for you. Discuss the terms included in the contract and request for additional clauses, if needed. Don’t sign anything unless you’re a hundred percent sure and there are no loopholes in the contract.
It’s safe to say you’ll be staying in the house you’re buying for a long time. Given this, you need to work on long-term goals. You may want to look into the zoning laws of the area you’re eyeing, the future developments that will rise in the location, or if home values are declining.
More on Realliving.com.ph