Acquiring your first home can be an exciting and fulfilling venture and at the same time challenging. However knowing the common mistakes of a first time home buyer will ensure you don’t make the same again.In as much as home ownership is a good achievement, there are mistakes a first time home buyer can make easily due to the exciting feeling that comes with this life changing acquisition. Below are the common ones:
Spending above your budget
It’s important to be realistic about what you can afford as a first time home buyer. The final sale price isn’t the only cost to take into account when owning a home. Houses come with plenty of bills and occasionally hidden costs.
Solution: Take a close look at your finances. Be aware of your current fixed costs and always leave some reserves to ease financial pressure. Ask the homeowners and landlords what they spend in a year on their bills, house renovations and repairs, property taxes e.t.c, so you can be prepared adequately.
Not considering the Location
Sure the house maybe gorgeous fully renovated and painted in your favorite colour. But it’s on a busy road and it’s not gated coupled with the fact that you have three young kids who like to run and play out a lot
Solution: Be smart! Visit the house at least thrice; you will be surprised at how your opinion can change on a second or third visit. Inspect every part of the house, the rooms, floors, its location, and neighborhood and really try to picture yourselves in the house and the location for years down the road. If you are married, it’s advisable to go with your spouse and together you can come up with great decision.
Working without a Real Estate Professional
You don’t need a real estate agent or professional to buy a house but before disregarding the importance of a buyer’s agent, understand that the seller’s agent has his or her client’s best interest in mind, not yours. They’ll offer you advice and answer your questions, but ultimately, this person is there to serve the seller.
Solution: For this reason find yourself a real estate agent or real estate professional.A buyer’s agent can guide you in the right direction, help negotiate your bid, counter an offer, and organize the closing process. And since the seller pays both agents’ commissions, it only makes sense to have an agent on your side.
Not researching necessary information
Blindly buying a home can be a big mistake. Whether you’re paying too much attention to your friends and family who just love the place or are feeling the pressure to make a quick buy, moving into a house that hasn’t been thoroughly vetted can be a big, expensive, regretful mistake.
Solution: Do your research! And do it first-hand. No agent or family member can know exactly what you want more than you. Spend a day walking the neighborhood, learn about your neighbors, research the local school and visit the important places.
Not carrying out legal searches
Many people got carried away with the beauty or aesthetic ambiance of a property and so they fall into the trap of buying houses that the seller has used as collateral to obtain loans from banks or individuals.
Solution: carry out a legal search by your lawyer or a legal practitioner on the property to know whether is free from encumbrances. Then you can go ahead and buy the property and avoid a costly mistake as a first time home buyer.